They seam to have foregone paying interest on the hybrids so that they could gain the necessary concessions from the remaining lenders ie. 3 year term and more generous loan covenants.
Still at $45 they look good value now that the 30 June 2011 remarking date is now before these loans mature. On reading the PDS it appears that holders can bid up the required re-set interest margin on reset (30/6/11) so that it is at a sufficiently high level for Elders to consider either repaying (unlikely) or converting for $102.50 of shares (more likely) rather than continuing with a much higer margin (which it will probably have to offer given the obvious risk of suspended distributions).
So I couldn't help but fork out $16k to buy 400 of these this morning at $40.
ELD Price at posting:
$2.55 Sentiment: LT Buy Disclosure: Held
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