To buy them back they have to come up with cash which is probably difficult for most companies since they tend to have their capital working not sitting. Also as rates rise not only do they pay out more but also it would cost them more to borrow so not so clear cut. If they were on to it they would have been buying them back on market when they were selling at a discount...however I don't recall any notification of this happening. However since I was fortunate to get in at 7210 its an excellent return on my capital. I haven't read the prospectus (lazy boy) but conversion to Downer shares would be possibility if I had to hazard a guess. I can see it running a while yet though. All depends on other finance options available globally.
Quote Originally Posted by Lizard View Post
I guess the biggest risk around this is that they will be re-purchased at $1 each or exchanged for shares in Downer (2.5% discount) on some future dividend payment date? At least that is the way I read the prospectus (pages 37 & 50).

As interest rates rise, they would surely have to think about doing so??