According to Bell analyst Damien Williamson, Crown series I Notes (ASX code: CWNHA) are more than worthwhile. He says the full year’s profit result “underpins the outstanding value currently provided by CWNHA” as Crown’s net debt has been reduced to only $174 million at the end of the financial year.
“The 5.00% issue margin on CWNHA equates to expensive debt for a cashed up Crown…This virtually ensures Crown will redeem the remaining CWNHA securities on issue at the 14 September 2018 call date.”
Crown has been buying Series 1 notes at its discretion for some months but in recent weeks few, if any, notes have been purchased. As at 11 August 2017, a cumulative total of 1,266,277 Notes out of 4,053,423 have been bought back by Crown so there is no shortage of notes left outstanding. According to YieldReport calculations, the trading margin on Crown’s Series 1 Notes was 307bps as at the close of business on 11 August 2017.