details on why i'm negative on ppx, page-13

Hi austted,
Sorry, missed out one thing, cumulative divis to start only after stepup applies, and only needs to be thought about as that approaches.
If you do the sums on divis for the ords starting in about 3 years, take into account the catch up pxu distributions to allow that, and the reduced ongoing interest bill from the pxus in the longer term[and the fact that the pxu's even at par, will be a cheaper form of finance than anything else if not stepped up], dilution line ball.
A 2.25% saving per year of the face value on the hybrids,in perpuity, goes a long way towards paying the eventual ords divi.

All this assumes that management turns the company around and wishes to restart ords divis, if they dont plan ord divis for > 4 years, the equation changes.

I would agree that a cheap pxupa buyback would be better for ppx, but there are a few obstacles in the way of that.
For instance, my reading of the pds, and company financials, suggests that no buyback of equity[hence the pxus] , is allowed while they are in arrears. Can be changed of course by a vote of the hybrid holders.
Grateful for others opinions on this.


pxu only

cheers