Recent content by w534220

why, when the ELD's are up 52% from their lows are the ELDPA's (which are senior to common equity) not bouncing at all? ELDPA's remain a bargain.

yes. everyone should study http://investor.elders.com.au/assets/documents/hybrid_PDF_2.pdf specifically regarding a takeover on page 39. 7.2 Adjustments for takeover or scheme of arrangement If a Hybrid is Converted pursuant to: (a) an Issuer Realisation Notice given in respect of an...

if you always assume the risk the market is implying is correct then you may as well invest in index tracking fund. hybrid holders have contractual rights. hybrid holders are senior to commone equity. they cannot take a haircut unless the company goes into liquidation or the hybrid holders...

because of the equity div stopper the equity would be more of a zero coupon perpetual than the hybrid. if the equity market discounted this(which it may well already be doing) it would be (is) a prime takeover candidate and in the case of a takeover the hybrid holders get par plus 50% of the...

another big difference between BEPPA and ELDPA is that the BEPPA outstanding was huge(approx $800mil) relative to the equity . whereas ELDPA is only $150mil. also the BEPPA were cumulative causing BBI to be getting deeper underwater, whereas ELDPA are currently free finance for ELD. but...

well i bought the beppas at under 10c so i know all about that. But Elders is different. BBI was trying to refinance debt secured against equity holdings in highly geared assets. it was beholden to the banks who wanted them to raise equity and Hamill/Kendrew had done a deal with BAM whereby they...

explain to me under what circumstances the ELDPA will not see $100? The only scenario under which you will not see $100 is if the firm goes into liquidation and the total assets of $2221million are worth less than total liabilities of $1150million. (i have included receivables and current...

well given they have already done a $550mil recap which de-risked the company and also given that they are close to break-even operating earnings in current environment on turnover of $2bn+ per annum and they recognise they simply have to expand their margin a little to improve profitability...

why wouldn't everyone buy ELDPA? there are 4 possible scenarios: 1. elders start paying hybrid dividends again as planned in a year's time. The coupon margin steps up by 250bp to be 470bp over the higher of 3mo BBSW or 10yr swap. so a total coupon of approximately $10.42 or running yield on...

i can't see why anyone would buy them for 41c or 42c , unless they saw the potential for sizeable gains(ie. more than 1 or 2c) given the potential downside risk if bbi shareholders or beppa holders rejected the deal. ie. the big buyers at these levels have done their homework and have a game...

it is highly irresponsible of the directors to suggest that if the deal is rejected that everyone will get zero. if it were true then why would Brookfield do this deal? they could instead allow BBI to collapse and buy the pieces more cheaply in the fire-sale...

The reality is that if this deal is voted down , the banks will roll over their loans to BBI. The banks obviously threatened BBI that they wouldn't renew the loans in order to scare BBI to go and raise equity. and BBI have said that they couldn't apply for a debt moratorium until and unless...

interesting that the big buyers of beppas in last few days have been hedge funds. question is: are they just looking to make 6c from the deal going ahead or are these the hedge funds behind the RBS proposal and thefore looking to torpedo the deal as it currently stands so they can resurrect...

indeed. worse still is that under the proposal bbi is granting brookfield a free option over the AETD assets. Meanwhile BBI will attempt to account for these assets as 'held for sale' an accounting trick used to report a lower gearing ratio of 63%. If the accounting trick is not allowed they...

well according to the BBI EPS Ltd annual financial report BBI EPS Ltd has total assets of 2.591billion and total liabilities of 2.725bn of which (see note 19) 677million are the beppas. so assuming the beppas are the most junior obligation there is 543million of asset cover for the 778million...