Mtfhc

[percy]

Motor Trade Finance Perpetual Bonds.
Size of issue $40mil.
Face Value $1
Coupon rate $6.26
Dividend Reset date,30th September annually.
Dividendend Rest Margin,2.40%, including full imputation credits,above the Benchmark Rate.
Currently trading at 70 cents.giving a net yield of 8.94%.
Illliquid? Lately liquidity has been good.
Risk.These bonds are behind all secured and unsecured creditors,but ahead of shareholders .
Liability.At present time MTF are awaiting the out come of a court case, where the commerce commission state MTF charged, in some instances too high a fees.Result of this case should be known in November.
MTF is a co-op with very strong dealer sharehoders such as Ford and Honda dealers.
Heartland have expressed interest in taking over MTF.
This is the first bond I have brought [only a few] at 68cents.
The reason I have brought them, is I think they will be rerated once the court case is settled,and should Heartland takeover MTF go ahead they will then be backed by a Bank.
Whatever happens I will enjoy great dividends,so long as MTF stay profitable.