will the company pay the interest to BNBG holders next month? I just bought some BNBG.
any ideas?
thanks
I've come across Babcock and Browns hybrid notes. The code is : BNBG and is currently trading for $20~. From what I gather the interest rate is roughly around $8 per annum with a face value of $100 and there is a reset day of nov 15 2010.
not sure if i'm understanding the concept of hybrids correctly, at the moment it will pay $8 per annum and until 2010 comes in which it will exchange $100 worth of BNB shares for each note .
is that correct?
Cheers
Yep, $20 buys you $116 over the next two years. Provided BNB doesn't find some way to reneg. Buy, and you may end up like the holders of AHUGA.
Take care.
which means the interest rate (and thus income) will fall if/as the swap rates fall.The interest rate for subsequent periods until the first reset date (15
November 2010) will be based on the Australian six month bank bill swap
rate plus a margin of 2.20% per annum.
which means the interest rate (and thus income) will fall if/as the swap rates fall.
Further, as per BNB's 27/09/06 ASX release:
Quote
Under the BBSN terms of issue, investors have the right to request an
exchange of BBSN into ordinary shares in Babcock & Brown in a number of
circumstances, including at reset dates and at maturity. On receipt of a request to exchange, Babcock & Brown may choose whether to exchange, repay or resell the relevant BBSN.
Babcock & Brown’s decision on whether to exchange, repay or resell the
relevant BBSN will depend on a range of factors including Babcock & Brown’s
equity and debt position at the time, the opportunities for expansion of our
business and our assessment of the optimal financing sources available to
Babcock & Brown at that time. In the event of exchange, Babcock & Brown
ordinary shares will be issued to investors at a discount of 2.5% to the average market price on the terms set out in this Prospectus.
Unquote
surprised nobody has said a word here about this stock. the commentary in the other forum has gone up to sky height following today's news release and here, silence... does nobody hold this stock anymore?
Got burnt pretty badly on BNB's monumental fall..
Right now 55c.. seems very tempting.. but don't want to play with fire again!
Is anyone buying into the stock today?
surprised nobody has said a word here about this stock. the commentary in the other forum has gone up to sky height following today's news release and here, silence... does nobody hold this stock anymore?
The problem is that BNB was only ever a blue chip in drag. They got on board the cheap credit, leverage to the hilt model and it worked wonderfully whilst asset prices were going one way. However that evironment has effectively come to an end for the short to medium term. GS and MS represent the most successful at this game and but as of today they have essentially admitted that they cannot continue in their current form and are converting to bank status.
BNB dooes not have the same level of leverage but they suffer similar problems. Reducing leverage and significant asset sales are the only way they can survive. Nothing has fundamentally changed in the last few days to change that.
You only need look back a few pages to understand why, the opinion was overwhelmingly bullish on this stock, I'd say the lack of commentary has to do with shock by those that hold. No doubt they'll be back when the stock starts to rally telling everyone what a wonderful blue chip company this is.
How could they not be bankrupt already?
They've lost 98% from of their highs and they were leveraged to the eyeballs.
If it were me and I lost 98% of my asset value and had loans to pay I think I'd find the nearest window. How can they continue to trade?
I agree dhukka, after seeing the collapse of Allco and ABC, both which relied so much on credit, why anyone would hold BNB still is beyond me. What positive is there for this company that anyone can state at the moment? I wonder how long before Ms. Nosworthy makes them file for bankruptcy, she has a good history in that field.
What's it going to take for people to finally get off this sinking ship?
The thing is, holders have lost so much already, there's not much more to lose.
So you might as well hang on to what little you've got left and pray for some sort of recovery.
B&B International Ratings Lowered To 'CCC+/C' On Restructure Plans; Stay
On CreditWatch Negative
Melbourne, Nov. 19, 2008””Standard & Poor's Ratings Services said today that it had lowered its long-term issuer credit rating on Australia-based Babcock & Brown International Pty Ltd. (BBIPL) to 'CCC+' from 'BB-', reflecting the financial challenges faced by the company, which were highlighted in the restructure announcement today. At the same time, the short-term rating was lowered to ‘C’ from ‘B’. The ratings remain on CreditWatch with negative implications, where they were initially placed on Nov. 10, 2008.
"The ‘CCC+’ rating reflects our view of an increased risk that BBIPL will fail to meet its A$3.1 billion corporate facilities’ financial covenants, which was also highlighted in the company’s announcement today. Should this occur, the banks might accelerate payments under the facilities," Standard & Poor's credit analyst Sharad Jain said. According to Standard & Poor’s rating criteria, a rating is likely to be lowered to ‘D’ if the lenders accelerate the payment of a facility, or restructure a facility in such a way that is deemed
by Standard & Poor’s as a distressed exchange. For example, a restructure could result in lenders not receiving appropriate compensation. We note that Babcock & Brown intends to negotiate with its lenders for
amendments in the corporate bank facilities.
Given the global financial market conditions, and BBIPL’s recent experience, we believe that the company is likely to face significant challenges in selling its assets and businesses, and consequently reducing its debt at the corporate level.
To resolve the CreditWatch, we plan to meet with the company management to better understand the proposed changes in the bank facilities, BBIPL's asset and business sales plans, ongoing exposure to Babcock & Brown Power, and debt retirement progress. The CreditWatch is expected to be resolved by
early next year.
very true on this mob,once the dust settles which will be?? there will be opportunities, yep your a lot gamer than me,too risky for my liking as i still think they may be rearranging the deck chairs on the BNB titanic, however they did react swiftly to a possible attack from the long short-short long gang,i would think the sentiment to these types of set ups will see the price head much lower,i reckon they where very lucky they werent among the hit squads early victims, as it gave them much needed time to re-borrow & spread it,interesting to see how they go in the next 3 months...tb
I said last week this was the next house of cards to go & i see they are furiously covering their vunerable arses from the shorters hit squad,they all got the same problem,debt to expand & with the banks wanting the bat & ball back its only a matter of time before they cant take from here to prop up this staple..always very dodgy using debt...
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