In December, St Barbara (ASX: SBM) announced the US$20 million buyback of its Senior Unsecured Notes, effective 20 January 2017 (in addition to previous reduction of debt by ~US$100 million). This buyback is set to reduce the company’s future interest expense by A$2.4 million p.a., hence strengthening its overall net-cash position. The decision by the Australian-based gold producer and explorer was [...]
Over the past decade there have been a number of securities that feature the option to convert into ordinary equity at a pre-defined date. The conditions that trigger convertibility vary with each security but given this exposure, the price of security can be impacted by the underlying share price. The ratio of shares the investor receives for each security is [...]
In Australia, many investors fail to reap the benefits of geographical diversification. The international fixed income market is more than 10 times larger than the Australian market and offers a greater variety of sectors and industries. As foreign fixed income instruments are generally denominated in the base currency of country of origin, the primary deterrent of international fixed income is [...]
The PaperlinX story never ends and continues to find its way into the media. For those who do not know, the PaperLinX Step-Up Preference Securities (ASX: PXUPA) initially listed in March 2007 and has been one of the worst performing securities in the ASX-listed debt and hybrid market over the past decade. The underlying entity, PaperlinX Limited, was hit hard by [...]
Back in November 2015, news came too light that a Brazilian dam owned by a BHP joint-venture had collapsed, fatally injuring a number of employees and damaging nearby communities. This was followed by extensive legal proceedings brought forward by Brazilian government regarding clean-up costs and compensation of BRL155 billion (~AUD $62.5 million). Samarco is a joint-venture between BHP Billiton and [...]
In recent months, Alumina Limited (ASX: AWC) has been media spotlight regarding an ongoing legal dispute with its major business partner Alcoa. Both companies form part of the world’s largest Alumina business, Alcoa World Alumina and Chemicals (AWAC), which is involved in bauxite mining as well as alumina refining and smelting. Figure 1. AWAC Ownership Source: Company Reports In early [...]
In recent weeks, the downfall of Eagles Boy Pizza has been a hot topic in the world of food retailing. On the 14th of July 2016, the third-largest pizza chain (behind Domino’s and Pizza Hut) was placed into voluntary administration among growing debt concerns and a highly competitive landscape. While all Eagle Boys store continue to trade, the national franchise [...]
Over the first half of 2016 the four major Australian banks have issued ~A$4.65 billion of domestic and US$1 billion of offshore hybrids. In a globally low interest rate environment, these issues have been well supported by investors and this is reflected in the movement of the average hybrid trading margin over 2016. Figure 1. AT1 Average Trading Margin [...]
In recent weeks, one of Australia’s biggest hospitality groups, Keystone Group, has gone into receivership. Keystone Hospitality runs 17 establishments across Australia and employs around 1200 people. Although a private company, the company’s fall highlights some important lessons in debt management. The Keystone story is a case of the company that grew too quickly. Two years ago, the group [...]
The Elders Hybrid (ASX: ELDPA) story is an interesting one as it highlights the complexity of capital management. Following Elders’ announcement last week to undergo an equity capital raising to facilitate the on-market buy-back of its outstanding hybrid securities, we believe it is a good opportunity to revisit Elders’ recent history for future reference in regards to perpetual securities. The [...]
An employee-owned financial services provider focused on the Debt Capital Markets.
An employee-owned financial services provider focused on the Debt Capital Markets.
© Bond Adviser Pty Ltd ‧ ASFL 456783 ‧ ABN 31 164 148 467 ‧ Important Information
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
© Bond Adviser Pty Ltd ‧ ASFL 456783
ABN 31 164 148 467 ‧ Important Information
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
