IFTHA Infratil Perpetuals

[Grimy]

I've just had a look at the IFTHA Information Flyer. Nothing mentioned apart from the 1.5% margin. So I'm guessing if interest rates went to negative then the margin would be on top of that as in your example.
Some later issues have stated that an interest rate will not go below a certain % value. But certainly can't find anything like that for the IFTHA bonds.

[Jaa]

Thanks Grimy, guess we will know in November. 1yr swap rates hit 0.18% last week.

[GTM 3442]

I suspect that few people here bought these at issue, or at anything much over 60c in the dollar, so even on it's own, that 1.5% margin isn't looking too shabby.

[Jaa]

1yr swap currently at 0.13%.

If it drops below -1.5%, will holders have to pay Infratil?

[Gonzo]

interesting bit in Chris lee commentary yesterday 8th october
https://www.chrislee.co.nz/taking-stock

[kiora]

interesting bit in Chris lee commentary yesterday 8th october
https://www.chrislee.co.nz/taking-stock

Thanks for posting Gonzo. Interesting especially about Hubbard. Lets hope keep NBR going.
https://finance.yahoo.com/news/japan...013223619.html
https://techcrunch.com/2019/09/20/wa...on-checks-too/
Using the Feds money. Heads they win, tails you loose.

[GTM 3442]

For what is essentially at-call money, that 1.5%pa compares quite well with term deposit rates of well under 1%.

Especially at 55c in the dollar

[Grimy]

Even slightly better at today's reset of 1.71% and at 53.5 cents.

[Southern Lad]

The AustralianSuper proposed scheme of arrangement for IFT poses some interesting questions for the IFTHA bonds. What protections are there for bond holders should there be a change in ownership of the IFT shares? What scope does the Trustee have to intervene on behalf of bond holders?

I see the IFT bonds are repayable should compulsory acquisition of IFT shares held by minorities occur - see page 11 of the prospectus:

https://www.interest.co.nz/files/bonds/iftha.pdf

Presumably a shareholder approved Scheme of Arrangement doesn’t result in compulsory acquisition occurring (rather it’s something that occurs under a takeover once 90% ownership is achieved) and therefore I assume the IFTHA’s would survive AustralianSuper acquiring IFT via a Scheme of Arrangement.

It would be worthwhile to review the trust deed in detail. If there is any prospect of repayment, the current market price of 53.8 cents in the dollar may move. Or if bond holders are locked in, 53.8 cents is expensive.

[Jaa]

The AustralianSuper proposed scheme of arrangement for IFT poses some interesting questions for the IFTHA bonds. What protections are there for bond holders should there be a change in ownership of the IFT shares? What scope does the Trustee have to intervene on behalf of bond holders?

I see the IFT bonds are repayable should compulsory acquisition of IFT shares held by minorities occur - see page 11 of the prospects:

https://www.interest.co.nz/files/bonds/iftha.pdf

Presumably a shareholder approved Scheme of Arrangement doesn’t result in compulsory acquisition occurring (rather it’s something that occurs under a takeover once 90% ownership is achieved) and therefore i assume the IFTHA’s would survive AustralianSuper acquiring IFT via a Scheme of Arrangement.

It would be worthwhile to review the trust deed in detail. If there is any prospect of repayment, the current market price of 53.8 cents in the dollar may move. Or if bond holders are locked in, 53.8 cents is expensive.

Did scheme of arrangements even exist back then? If not then surely this would be against the intent of the change of control clause?

Would perpetual holders get a vote in the takeover?

The perpetuals are small change in the scheme of things.