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View Full Version : Infratil IFT140/IFT150 Offer



GTM 3442
06-01-2011, 09:01 PM
My daughter just got an interesting offer from IFT.

Was to swap her IFT140 (8.25%, 15/05/2011) for IFT150 (8.5%, 15/06/2016).

Gives her another 5 years at 8.5%.

But Infratil won't have to stump up cash at maturity.

What does the team think it all means ?

macduffy
08-01-2011, 06:46 PM
Personally, I wouldn't have a problem with investing with IFT for five years if it suited my fixed interest needs, ie if I didn't need the cash for other purposes and if the 5 year term fitted into a gap in my maturity "ladder".

I havn't done a lot of research into this but 8.5%pa seems a reasonable return for the term and risk, given that there don't appear to be a lot of comparable securities of this term offering at present. An alternative of course would be to take the cash and wait (and hope?) for a better offer but personally I've never had any success in being able to correctly forecast or time interest rate movements!

GTM 3442
09-01-2011, 04:54 PM
I was rather thinking that it might indicate a disinclination to stump up with the cash ?

macduffy
09-01-2011, 05:42 PM
I was rather thinking that it might indicate a disinclination to stump up with the cash ?

I doubt it, although it would probably be convenient for IFT not to have to repay and to make other arrangements.

It's fairly standard practice for companies to "roll-over" maturing debt. A warning sign would be if the interest rate offered was out of line with that current for the term and risk. I don't think that's the case here.

CJ
10-01-2011, 11:40 AM
I was rather thinking that it might indicate a disinclination to stump up with the cash ?Your your fixed rate mortage on your house finishes, do you repay or do you refinance. That is all they are doing. If 8.5% rocks your boat go for it - seems pretty good to me.

Disc: IFT holder

GTM 3442
10-01-2011, 04:41 PM
Thanks team.

peat
10-01-2011, 05:37 PM
subordination levels?
terms of the deed, security etc
make sure they're are the same or at least acceptable
probably are , just sayin....