IFTHA Infratil Perpetuals

[bottomfeeder]

Changed my post after reading the past posts. All my questions are answered.

[bottomfeeder]

See above.

[Grimy]

I see the rate was reset at 7.06% last month, meaning around 12.3% for those who bought around 56-57 cents.

[NZSilver]

Why have yields jumped in the last few days? I notice my ift bonds went from 6.3% back to 6.8ish

[Grimy]

IFTHC reset today at 6.24% for the next 12 months.

[Newman]

Would a significant reduction in IFT's value trigger the compulsory redemption of IFTHA?

[Grimy]

Had a quick look through the prospectus. Short answer looks to be no.

Note PIIB means Perpetual Infratil Infrastructure Bond.

No Maturity Date: PIIBs have no Maturity Date. Accordingly
Infratil is not obliged to repay the PIIBs, and Holders of PIIBs
cannot require Infratil to repay their PIIBs, unless an event of
default or a compulsory acquisition occurs as set out in the
Trust Deed which results in an early redemption or conversion
of their PIIBs. This means that the only way in which a Holder
of PIIBs can cash in his or her investment, other than for the
limited circumstances described above, is to sell them.

If Infratil was placed in liquidation, Bondholders
will rank behind the holders of charges on Infratil’s
assets, and equally among themselves and with other
unsecured, unsubordinated creditors of Infratil (other
than creditors preferred solely by operation of law).

Nothing on a reduction of company value triggering a repayment-perhaps if a default situation happened (missing an interest repayment by 14 days for example), but by then it would probably be too late

There was more to read, but I started to glaze over.........