BBI 0.00% $3.98 babcock & brown infrastructure group

bnb and bbi

  1. 55 Posts.
    The more I read the prospectus on BBI EPS (BEPPAs) the more it appears that the fate of BBI holders is inextricably linked to the fate of BNB. If BNB go bust and they are replaced by an administrator, this triggers what is defined as a "change of control event", which triggers conversion of BEPPAs to BBI ordinary securities roughly at face value of the BEPPA divided by VWAP of BBI units in the 20 days preceding conversion. At current prices this would equate to MASSIVE dilution of ordinary BBI security holders.

    My reading of this could well be wrong, but if it's right BBI holders should keep a very close eye on the fortunes of BNB. I'd say BBI price could following BNB for this reason.
 
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