sharetrader
Page 1 of 9 12345 ... LastLast
Results 1 to 10 of 85
  1. #1
    Adventurer Silverlight's Avatar
    Join Date
    Dec 2009
    Posts
    492

    Default Works Finance (NZ) Limited (WKS) Bonds

    For discussion the WKS010 vs WKS020


    Just reveiwing the Yields for:

    WKS010: 15% & WKS020: 7.9%

    Could anyone shed some light on why the WKS010's trade at such a large discount to the 020's.

    Coupons are 9.8% to 9.65%.
    ~ * ~ De Peones a Reinas ~ * ~

  2. #2
    Member
    Join Date
    May 2003
    Location
    Wellington, , New Zealand.
    Posts
    103

    Default

    WKS010 are subordinated and close to equity, can suspend interest etc and are perpetual. WKS020 are senior dated debt.
    Success is the ability to go from one failure to another with no loss of enthusiasm

  3. #3
    Adventurer Silverlight's Avatar
    Join Date
    Dec 2009
    Posts
    492

    Default

    To answer my own Question, just found out the answer.

    WKS010 are preference shares, guaranteed on an unsecured subordinated basis.

    WKS020 are fixed dated bonds, guaranteed on an unsecured unsubordinated basis.


    Edit: Thanks dubdee, was typing as you posted
    ~ * ~ De Peones a Reinas ~ * ~

  4. #4
    Adventurer Silverlight's Avatar
    Join Date
    Dec 2009
    Posts
    492

    Default

    Additionally,
    Quote Originally Posted by Direct Broking Website;

    If the holder requests a higher rate than the rate set in the remarketing process, then the holder will be entitled to require Downer to repurchase or resell their holding. If Downer repurchases the securities, it will have the option to redeem in cash or equivalent value of shares in Downer
    In effect as the WKS010 mature 3 months before WKS020, you could request a higher rate, and have your holding bought back, or converted in DOW shares. Would like to see how the prosepctus words this, anyone have a copy or a link?
    ~ * ~ De Peones a Reinas ~ * ~

  5. #5
    Junior Member
    Join Date
    Dec 2009
    Location
    Kerikeri
    Posts
    2

    Default

    Additionally,
    Originally Posted by Direct Broking Website;

    If the holder requests a higher rate than the rate set in the remarketing process, then the holder will be entitled to require Downer to repurchase or resell their holding. If Downer repurchases the securities, it will have the option to redeem in cash or equivalent value of shares in Downer
    Silverlight
    In effect as the WKS010 mature 3 months before WKS020, you could request a higher rate, and have your holding bought back, or converted in DOW shares. Would like to see how the prosepctus words this, anyone have a copy or a link?


    These have seemed like a good oppourtunity to me for a while. The terms of rollover are contained in the notes to the financial statements for Downer. Go to www.works.co.nz , shareholders info and click on latest annual report. Page 77 conatins the info. As I read it if you want to get out of them in 2012 you can by choosing to take shares at a 2.5% discount. The company has gone through a bit of a downer lately but is still well rated. Cant see it not meeting a payment by 2012.
    All I need before buying some is confirmation that I am reading the situation correctly.

  6. #6
    Member
    Join Date
    Aug 2010
    Posts
    379

    Default

    [QUOTE=midas;318838]Additionally,
    Originally Posted by Direct Broking Website;

    If the holder requests a higher rate than the rate set in the remarketing process, then the holder will be entitled to require Downer to repurchase or resell their holding. If Downer repurchases the securities, it will have the option to redeem in cash or equivalent value of shares in Downer
    Silverlight
    In effect as the WKS010 mature 3 months before WKS020, you could request a higher rate, and have your holding bought back, or converted in DOW shares. Would like to see how the prosepctus words this, anyone have a copy or a link?


    You can download a copy from
    www.companies.govt.nz
    by searching the company and viewing a file "WORKS infrastructure finance (NZ) Limited Memorandum of amendments dated 15 March 2007". It is a large file 4.5 MB thus cannot be loaded on the forum.

    The recent decrease in price may be linked to the collapsed South Canterbury Finance (preference shares) and the earthquales in Christchurch (need money now).

  7. #7
    Share Collector
    Join Date
    Mar 2005
    Location
    Porirua
    Posts
    3,509

    Default

    WKS010 in trading halt pending material announcement but not the 020's?

    Are they likely to be suspending the next div then?

  8. #8
    Share Collector
    Join Date
    Mar 2005
    Location
    Porirua
    Posts
    3,509

    Default

    Actually, I guess it's just that they're prefs rather than debt securities as the DOW shares are in halt too over delays on the Waratah train project. All looks pretty messy:

    http://www.smh.com.au/business/train...124-1a2z4.html

  9. #9
    Veteran novice
    Join Date
    Jun 2007
    Location
    , , .
    Posts
    7,289

    Default

    Comment from Adele Ferguson of the SMH.

    http://www.smh.com.au/business/credi...125-1a4es.html

  10. #10
    Speedy Az winner69's Avatar
    Join Date
    Jun 2001
    Location
    , , .
    Posts
    37,692

    Default

    Apparently Works senior bonds (WKS020) have a condition that the interest rate increases by 1.25% if they fall below BBB- credit rating.

    Maybe a additional payday for your jokers coming up?

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •