Ann: TSI Fund Capital Structure Review Outcomes , page-24

re: Ann: TSE: TSI Fund Capital Structure Revi... They really haven't offered a good deal for shareholders. If they wanted to do it properly, they should have at least matched the new SPP to the existing yield we were looking at. I'm not sure thats really possible, unless they had a large excess of revenue that they weren't paying out, but it just seems like such a bad deal for us retail investors.

ie, I was accumulating at 90c, expecting a 12c distribution. Thus giving a 13.3% yield.

Now, based on their SPP of 70c and guidance of 8.2c, we're looking at 11.7%.

The SP was happy to lull around 90c between distributions giving potential 13% yield, so I don't see why it wont lull around 62c after June, which is back to a 13% yield on the new guidance.

Surely they had other options, one that didn't screw existing holders over this badly. I'm holding a decent parcel that I bought at 90c, which is now likely to trade in low 60c. After all, a 30% cut to distributions will likely result in a 30% drop in SP.

I'm not sure why life and TSI couldn't continue on as normal. If they wanted more cash for debt reduction or acquisitions, they could have done a smaller capital raising, with less severe dilution and less distribution cut. And I don't see why a reduction in debt is such a driving force, surely they can gain access to finance if they can show they can pay it back via revenue.

Anyway, its traded down to 70c today, and likely to be a red day tomorrow (Dow futures down pretty hard at the moment), so unless they start pumping the share price, I doubt the full entitlements will be taken up. I won't be taking mine up if I can buy at 69c on the market obviously.