Brookfield would be able to refinance the SITES at a cheaper rate, but the hybrid counts as equity in their balance sheet, not debt, so they'll be more concerned about the impact on their gearing ratio. However, I think Brookfield would prefer to tidy this up so still favour some form of buyback (it may be part cash, part new security rather than $100 in your pocket)
If the step-up is enforced, then at below $80, the stock is yielding above 10% on a stepped up basis which is a great return for the risk. If official rates keep going up, then that's even sweeter.
I'm a holder and buying more at these levels.
MXG Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
