chances of survival - and timg vs tim?, page-6

Hi Watford - yes TIMPB and TIMG do rank equally and are ahead of TIM, but they are both unsecured and subordinated.

It is my initial impression that it would be better than TIM and TIMPB for at least a certain set of possible outcomes. I need to find the appropriate 6 month bank swap rate to do some better math and I just haven't been able to find it this morning. But if you just take the interest above the saw rate the TIMG pays (2.75%), that implies an interest rate of nearly 25% (TIMG is selling for about 1/9 its face falue), which is above the return I got on TIMPB last week.

The exchange terms for TIMG are also a little better. For TIMPB you had exposure to a SP less than 50 cents (max conversion = 4), but for TIMG it is at 25 cents (max conversion = 400).

But all of this has to be weighed up against the possibility that the dividend is not paid. With TIMPB there was an immediate trigger for conversion. Although I am not 100% certain, I don't there is for TIMG. There is a lot to consider for and against either issue (in either case the overall health of the company is first and foremmost). I'm still slowly working my way through it. I don't hold any TIMG yet, but may decide to sometime in the next week or so.