Analysts seem not iterested in this bond. The share price of APN News and Media, however, has been in steady rise since the CEC was kicked out last month. The article below might be of interest to APM010 bond holders.
Media stocks up on radio sale
Ninemsn-07/03/2013
Judging by the jump in the share prices of Fairfax Media (ASX: FXJ) and APN News and Media (ASX: APN) following the sale announcement, ...
http://finance.ninemsn.com.au/newsbu...-on-radio-sale
If APN News and Media can exist for 3 years (the bonds mature in March 2016) APM010 would be a good buy, giving a yield of 14.75% p.a.
APM010 bonds
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11-03-2013, 03:10 PMNewmanAPM010 bonds
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11-03-2013, 03:58 PMBIRMANBOY
Yes looks very juicy.......but I'm sure I've seen some clause somewhere that allows them to either reset or do something that made me say no dont do it. Problem is I cant find it now...be carefull and do some research first IMO
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Originally Posted by Newman
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12-03-2013, 10:06 AMNewmanAPM010 bonds -prospectusThe investment statement/prospectus for APM010 bonds are available on website below:Quote:
Originally Posted by BIRMANBOY
http://media.corporate-ir.net/media_...prospectus.pdf
The bonds would have to be repaid in March 2016 if APN still exists by then. Would it be a reasonable expectation that APN would not disappear within 3 years?
APM010 bonds are "Secured, unsubordinated, fixed rate debt". At the worst scenario, bondholders would be ranked equally with other creditors.
APN share price jumped 9.1% yesterday, closing at 36 cents. -
12-03-2013, 10:27 AMbondholder007
I bought some a year back. The price then was .9594 so my yield is only 9.6%. I do worry a bit about the price drop but I cant see APN going belly up by 2016. I am not aware of any fixed rate bonds where the issuers can reset. This only happens with "perps". There is provision for early redemption at a premium to the holder
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12-03-2013, 12:41 PMBIRMANBOY
Thanks for the link..cant see any early redemption "gotyas" so must have been confusing with something else.
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Originally Posted by Newman
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12-03-2013, 01:03 PMBIRMANBOY
Ok I cannot see any note about "rolling over" these at the maturity date in 2016. So buying today at say 13.2 will give a yield of 8.99% $786 (for 10000) divided by original in price of $8743.60. If they have to pay out on maturity then there is the added bonus of $1256 in 2016. So thats roughly coming out to 13.78% per year return for the next 3 years. Have I got that right? (roughly) If so and forgetting any risks associated with APN in general...why is it that this is not being pounced on? Am I missing something obvious?
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17-04-2013, 10:49 AMbrevos
Anyone got a view on APM010? They're at a yield of ~11%, but how real are the risks of the company going belly-up or debt holders having to take a haircut?
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17-04-2013, 03:12 PMBIRMANBOY
Read the previous posts in the thread for some opinions. My previous post went unanswered so a bit unsure myself. High yields always make me nervous. APN has had a recent upsurge in SP and also most of the directors were rolled. Risky in my opinion. If you want safer..IFT is putting out a new debt security soon at 6.85% . See it at "New Issues" on DB website.
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Originally Posted by brevos
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21-07-2014, 05:17 PMLizard
Well done to those that got some at 11% yields... I went looking for vanilla bonds on the weekend and decided on this one, but the rate now down at 7.5%. Still seems a pretty good rate given the comparisons.
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21-07-2014, 08:55 PMPenfold
I have just sold my entire FI portfolio over the past fortnight and bought a house. Worked out quite well with the massive pressure on margin over the past couple of years squeezing up the capital values. Yields are so low now, it almost makes sense to put cash into our own home. Rents are creeping up and a few pressured sellers here in Wellington.
What has my life come too? Looks like weekends will now include a visit to Bunning's.
I was really struggling to find value out there the last year. These APN's are still ok. But for the risk I preferred a few lines of prefs. The Origins, Works, Rabo17s, MTFs and Quaysides. There are all still at relatively good margin. You just have to keep paying attention and be ready to sell. -
21-07-2014, 09:17 PMLizardYes, I had been mainly putting my bond allocation into prefs/resets for the past 2 years. But with a few maturities of late in the vanilla bonds and the underlying "lower for longer" philosophy on interest rates, 7.5% (or a little less with brokerage!) will do me for now. The issue is not huge and APN seems to have the balance sheet to make repayment in Mar 2016 seem a good bet.Quote:
Originally Posted by Penfold
I looked at the GFZ010 issue as well at a similar rate, but the "out" for holders in the current bid seemed a bit hazy. Somewhat better protection built into the APM010's from what I could see.
Still holding a chunk of my bond allocation in cash though, hoping to see some better issues or opportunities to come. -
22-07-2014, 10:37 PMPenfold
Was going to suggest the new KIP Fixed bonds, but see they have set at just over 6% for 7 year exposure. Not sure I would go there. Bank step saver accounts would seem a better choice.
There are a few high yield property stocks out there too as a replacement for bonds. I built a decent holding of SCP and FET (ASX). The currency adds another dimension... I just feel the NZD is overvalued. I have had a good run up in capital value with those too. If the AUD strengthens it will make the bonds look even more poor in comparison. -
23-07-2014, 10:32 AMLizard
Thanks for the thoughts, Penfold. Yes, I thought the KIP were looking interesting, but find it hard to put money on any corporate debt issue at less than 7%. I will have a look at SCP and FET - I own CMW over that side, but hasn't done much beyond the divs in the last few years. Still, return is good and comes under FIF, so works for me.
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20-08-2014, 11:05 AMLizard
Oh dear, they are going to repay early - now Sep 2014. However, I think they have to pay a 2% premium to the principal amount for early repayment between the 3rd and 4th anniversary of issue, so at least that will be some compensation.