details on why i'm negative on ppx, page-15

Hi,
The stepup of 2.25% applies if the pxu's aren't redeemed or remarketed in 2012, taking the margin to 4.75%.
So one quid pro quo, ords vs hybrids, would be for the hybrid holders to forgo the 2.25%, in return for the cumlative divis.
Divis still payable at the discretion of the board.
If this were to happen I would envisage the hybrids essentially never being redeemed, they would effectively operate in much the same way as something like NAB's income securities, nabha[which are never likely to be redeemed], and be relatively cheap long term debt.
Assuming PPX returns to health, would probably make the price ceiling for pxu's $65 to 70.

cheers