vrl proposal to preference shareholders, page-14

Another thing, this is the latest credit rating stuff on VRL:

VILLAGE ROADSHOW LIMITED 2002-07-02 ASX-SIGNAL-G

Village Roadshow ("VRL") advises that Moody's today announced its
re-rating of Village Roadshow Limited's credit status to Ba2 (with a
stable outlook). This compares with the Standard & Poors' rating of
BB+ (with a negative outlook) issued in December 2000.


According to the RBA website BBB bonds trade at a yield of about 5% (90 Basis points above commonwealth govt securities) - since BB+ is worse than BBB we would expect the bonds to trade at a yield higher than 5% - but would expect it would be under 10% so I expect that the bonds will trade at a premium to face value - any thoughts? I suppose the fact that the debt ranks behind other debt will push the rate up a bit but would still expect it to be under 10%??......

Ed