Section 2.4 Clause 3.9 of the CWNHB prospectus states, amongst other things, that the interest margin will increase by 5% if a change of control event occurs and Crown does not elect to redeem all Notes by the 15th business day following that event.
I have had a quick glance at the Scheme Implementation Deed with Blackstone, and cannot quickly see direct reference to redemption of the notes. However its highly likely that Blackstone could access finance at a lower rate than the new coupon for CWNHB, and they will redeem the notes when they win control (as they can under the terms of the original prospectus).
The risks in the meantime are the implementation risk that the takeover does not proceed for some reason, and the time value of money until this all plays out. I would be happy to continue to hold CWNHB and receive the 9% plus coupon from Blackstone, but I doubt that this will happen.
I hope this helps.
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