should i sell out?

SVWPA, or Telys4 the new SEVPC, this yield security has fallen from 85 to 78 in just a few weeks, I see no obvious reason why the RSPT would make the svwpa drop even harder than svw the ordinary share?

The good side:
For the co-insurance effect, diversification can reduce the chance of default as the cash flows are less volentile. Westrac do have free cashflows if not alot. As an old lender to Seven (in a sense that we are still above ordinary shareholders from both firms) we can now extract our interest payments from both Westrac and Seven Network's free cashflows. Therefore as long as there's free cashflows to shareholders (like dividends), we will get paid.

The bad side:
Dramatic change in Australian tax regimi may result in cancellation of mining projects which in term decrease Westrac's earnings, Westrac may not generate any free cashflows and then it becomes a blood sucker of the entire group (I would support for a demerge then). However this worst case scenario is unlikely.

Overall I still believe the merger is neutral for debt holders and negative for ordinary shareholders!