tpapa

reminder:
- TPAPA is trading at 46% of face value
- payments of around $5.25 per annum fully franked
- based on a price of 46, this is 11.4% yield fully franked or 16.3% p.a. grossed up
- this rate "steps up" in Oct 2011 by 2.5% to 6% over bank bills (at 4% bank bill, this is 15.2% ff based on price of 46 or 21.7% per annum grossed up.)

In addition to the above high yields, the TPAPA convert to TPI with timing of this at discretion of TPI. Conversion is at $102.56 worth of shares so capital gain is around 233%.

TPAPA rank ahead of TPI.

So TPAPA is a high yielding investment that ranks ahead of TPI in terms of dividend priority and results in large capital gain upon conversion to TPI.

With equity raising expected for TPI, TPI share price could move lower but with TPAPA moving higher.