cbrendan just consider BEPPA suboridinated debt. Interest payments on these rank ahead of dividends on BBI. If payments on BEPPA re deferred, BEPPA holders must be kept whole and interest is paid on interest that was due.
In July 2012, these BEPPA will likely convert to BBI shares at $1.08 value. i.e. if average share price BBI is say 10 cents in 2012, BEPPA converts at ratio of 10.8 BBI shares per BEPPA note. So buying BEPPA today with this sort of uplift makes better sense than buying BBI which will be heaviliy diluted in July 2012. If there is a Change of Control, BEPPA can and will probably be converted to BBI shares at that time, if for no other reason than to extinguish the interest liability on BEPPA.
Anybody comments?
BBI Price at posting:
6.6¢ Sentiment: LT Buy Disclosure: Held
