Originally Posted by
Beagle
Good point and I have been wondering about the interest rate too. I would think it would need to be at the very minimum 500 basis points above swap to be somewhat attractive but even then, this is a very volatile industry so maybe 600 points ? I guess there is some comfort to be taken in that bond issue from the fact the Govt cannot allow the company to collapse as it provides vital transport infrastructure to the economy so if a second capital raise is required, (and I think that's a very real chance), they will have no choice but to participate and if necessary underwrite it. Maybe 8-9% isn't a bad fixed interest investment ? Certainly the bonds are far more attractive prospect than the shares, there's no question about that !