PBL and Woolworths may follow NAB lead

Publishing & Broadcasting and Woolworths may follow the lead of National Australia Bank and seek to repay high yield debt securities sold to investors five years ago as “perpetual” debt. Both may prefer to replace these so-called income securities with cheaper medium term debt or hybrid securities. Like NAB, PBL and Woolworths are entitled to redeem the income securities at a par value of $100, even though the securities trade in the secondary market at a premium of up to $4.

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