Managers rush Telstra deadline
There has been a rush of financial services groups launching products that allow investors in Telstra II instalment receipts to defer their final payment.
There has been a rush of financial services groups launching products that allow investors in Telstra II instalment receipts to defer their final payment.
As reported on the Money Management web site on Monday, Macquarie Bank launched three products on Monday the allow investors to defer the payments due on November 2.
Macquarie has been joined by ANZ, UBS Warburg and JB Were who have all of-fered facilities for the long suffering Telstra II instalment receipt holders to defer payment. The receipts were trading at $3.00 this morning, down more than 30 per cent on its $4.50 listing price.
Most of the products on offer loan the investor the second instalment amount for varying periods of time and allow investors to maintain dividends and franking credits.
ANZ is offering instalment warrants which essentially lend investors the $3.05 due for the second instalment for 20 months, after which time they can pay off the loan (plus expenses) or sell the warrants to ANZ.
JB Were’s Instalment plus product involves the repayment of the loan for the sec-ond instalment over eleven equal monthly payments. There is a range of repayment options.
UBS Warburg is offering two options. The first allows 12 to 18 months deferral of the second instalment and no upfront costs. The second is a selling option for the receipts eight days after the first instalment stops trading. UBS Warburg says the facility is designed to alleviate the effects of a fall in the price of shares associated with the close in trade of the receipts.
All of the products are designed for investors looking to hold telstra shares in the medium term.
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