MXQ 0.00% 2.3¢ max trust

I have a question.As at Jun09 MXQ had $652m in debt. There are 2...

  1. 18 Posts.
    I have a question.

    As at Jun09 MXQ had $652m in debt. There are 2 class of debt one incurs a higher coupon and deferred margin of 6% and the other a lower coupon and deferred margin of 2%.

    As at Jun09:
    Expensive debt: $166m
    Cheaper debt: $ $486m

    As at Dec09 MXQ had $509m in debt.
    So I assume they paid down around $143m.

    Why did they not pay down the more expensive debt first?
    They only paid down $36m of the expensive debt.

    Do they have to pay down the debt equally?
 
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