swap's analysis of bnbg

Hi Swap,

I read your posts on BNBG with great interest as I hold a bunch of them.

You mentioned in one of your posts about the BNBG notes having a pseudo cap of $100 per note, which I think may not exist in certain circumstances.

If you are right and the company leaves the BNBG notes alone because they are too small a percentage of the total debt to worry about then that conversion option in them will remain. So starting in 2010 holders of the notes can convert into ordinary shares roughly speaking at $100/SP (if that was today then that would be approx 250 shares). However, given that there are $400mm of these notes out there and I'd be shocked to see BNB get a market cap above $1bn ever again that would be quite a dilution so I would be surprised if they leave them totally alone.

If you are right (and I really hope you are) then the cap you mentioned might not actually be there and you actually have a floor on the losses (per your analysis) and no cap on the gains.

Pretty interesting instrument, hope we get clarification in a positive way next week.

Separately I was glad BNB got their plan into the banks early and if the Banks approve it next week then we could start to see it implemented this month perhaps which is a lot earlier than the April date originally outlined which is a major positive.