now AUD down may be is good time to accumulate first?

i told my RM to buy at 2.92,
but  AUD FD rate only 4.4%
compared to your  4.8% there in Australia?

I bought some today 2.92
going down would buy more and keep

revenge buy becos that day i kena 3.1556
when bought the 2 bonds, both lelong at AUD96.80 and AUD98
luckily bond prices  up above PAR already...

park in Austr FD 3 month 4.4%
interest calculation based on 360days,
Austr 1 year so short meh? not 365days
..

MARC Ratings has assigned a preliminary rating of AIS to Tropicana Corporation Berhad’s proposed RM1.5 billion Islamic Medium-Term Notes (IMTN) (Sukuk Wakalah) and concurrently affirmed its ratings of AIS on the RM1.5 billion IMTN (Sukuk Wakalah) and A-IS on the RM2.0 billion Perpetual Sukuk. The outlook on all ratings is stable.

Proceeds from the initial drawdown of RM350 million under the new programme will be largely utilised to redeem the first tranche of its Perpetual Sukuk of RM248 million on the first call date on September 25, 2024. Further issuances under the new programme over the next three years would be to redeem the remaining two Perpetual Sukuk tranches and refinance the outstanding notes under the existing Sukuk Wakalah, which currently has an outstanding of RM745.5 million (end-2023: RM855.5 million).

https://www.marconline.com.my/press/60538900469806

bro you happy too fast or not?

Has this ever happened before in Malaysian history? It's a switch-a-roo. We got played!

At the end of the day, Tropicana will get the headlines that it redeemed Tranch 1 of the perpetuals, but only because they forced everyone onto a 4-year IMTN.

how come  now like not willing to redeem all 248 million.......

want to retain all our money and
add more selling the new exchange sukok..

looks like  FSM is going to say yes for all of us,
are you going to  say No to FSM?
FSm dapat something kah from tropicana?
so what are the possible scenarios now?

1) Take the offer no redemption money ,  get the new sukok and RM625 consent fee

2) Offer rejected, again we dont get back the redemption money
   we carry on with the old Bond getting 9% with its inherrent higher risk

i believe  quite alot would take the exchange even though coupon rate only 6.25%, less risky mah 4 yrs maturity.

They don't say they will redeem if they lose the EGM, but logically they would cause otherwise they are subject to a higher rate. The thing is, there are provisions for them to defer the coupon payments.

I still think they won't go to that extent, it will be viewed as a credit negative event. So once they get their liquidity in order, they should redeem by March or Sep 2025.

I just wrote in to FSM to demand a reason as to why they are voting YES. They should ask individual bondholders to vote and take the majority decision.

All in all, you learn a new thing every day. We are but small fish in a big pond. The high and mighty have crafty ways to escape things that us little men have no avenue for!

Only way is a few FSM bondholders of the Tropicana 7.00% sukuk get together. Individually, we may not be able to do much of anything.

The original perpetual is also a SENIOR SECURED. No difference.

Tropicana can defer the coupon indefinitely, but they won't be able to do a lot of things in the mean time with regards to dividend or other capital raising.

this is a win win situation

at least we help reduce its mad 12% interest loan
taken from the bank when
Tropicana was literally begging
at the mercy of the bankers
to fullfil its obligation to pay out that matured bond.

this new sukok is  just not the same
it is a notch higher in ranking
no nonsense clause can let Tropicana refuse to pay and still say no default
even has obligation for Tropicana to  get ready
standby money to redeem it back in 4 years

Obviously the call on the 5th year is optional, it already is a PERPETUAL bond. But the incentive to redeem it is there, due to the step-up penalty.

Even if they choose not to redeem, the way I see it, I rather stick with the perpetual bond and earn the higher interest. It jumps to 9% in Y6, then 10% in Y7, increasing 1% each year until it caps out at 15%. Either that, or just hand me the principal back.

Now Tropicana could also then choose to defer payment of the higher interest, but that will be to their detriment. They will not be able to pay dividends nor perform any capital transactions. It will be viewed as credit negative by the rating agency and the banks who loan them.

The switch-a-roo to the 6.25% 4-yr bond seems far too convenient for Tropicana at the expense of sukuk holders. It is unprecedented in the Malaysian environment, such a binding Exchange Offer has simply never happened!

By the way, you are wrong that there is more protection - the original 7.00% sukuk was also a senior secured sukuk. There is no changes in that regard.

Obviously the call on the 5th year is optional, it already is a PERPETUAL bond. But the incentive to redeem it is there, due to the step-up penalty.

Even if they choose not to redeem, the way I see it, I rather stick with the perpetual bond and earn the higher interest. It jumps to 9% in Y6, then 10% in Y7, increasing 1% each year until it caps out at 15%. Either that, or just hand me the principal back.

Now Tropicana could also then choose to defer payment of the higher interest, but that will be to their detriment. They will not be able to pay dividends nor perform any capital transactions. It will be viewed as credit negative by the rating agency and the banks who loan them.

The switch-a-roo to the 6.25% 4-yr bond seems far too convenient for Tropicana at the expense of sukuk holders. It is unprecedented in the Malaysian environment, such a binding Exchange Offer has simply never happened!

By the way, you are wrong that there is more protection - the original 7.00% sukuk was also a senior secured sukuk. There is no changes in that regard.

can see your disappointment
expectation for windfall cash 25.9.24 is gone.
think again 
may be not gone at all.

take the new sukok and sell
get back same RM250k, no?
plus some extras also...

if continue with the  old Perpetual bond
lagi susah to sell methinks..
you see it as Tropicana win we lose
sure angry lah

to me is ok Tropicana win lah
did i lose?.. i think no
compared to those who abandoned ship
sold at RM99 i think we are better off.

for those who bought lelong at RM93.50 or so,
the profit of some 17% return remains
got redemption no redemption sama tu!

No the exiting perpetual also has a security cover of 1.5x. It had a security cover of 2.0x initially when it was unrated, which subsequently lowered to 1.5x when it got rated.

i am going to buy. i think no problem for you to sell at PAR
or even higher if demand++

next few days CIMB RM going to bring consent form for you to sign
you ask her can sell  new sukok at what price...

FSM voting for exchange is meant for our good..
becos old or new sukok, FSM fees sama saja...
redemption only is different to FSM then takda untung
tu old  bond cannot sell lah.. sure rugi.
last was RM98.50.

Even though we bought RM93.50 only
i rather exchange to new sukok then only sell
new MTN dont know yet....
but i doubt bankers would sell to me at RM100
sure more than that.

so may be you guys can sell above RM100.

Yeah my RM let me sign today also...

just heard  a forumner got his dividend 6.6%
from another Tranche of Tropicana Bond

i was just wondering..... if our purchase of Perpetual 7.0% at RM93.50 early this yr
was profitable......why not we also go whack the Perpetual 6.6% also...

I think  its T&C is almost the same like our Perpetual 7.0%
in 2 years time the same thing is going to happen and
we can get back at RM100 or even more
with the exchange sukok.

good idea?

Anyone knows what happened at the Tropicana EGM yesterday? There is no announcement in Bursa today.

73% voted for exchange, Tropicana no pressure let them exchange lor

Another 27% redeem no problem I think
Scared Tropicana angry don't redeem and punish pulak...
Defer copoun...