The new SUNPG-CN2 Capital Notes offer (BBSW + 3.65-3.85%) comes...

The new SUNPG-CN2 Capital Notes offer (BBSW + 3.65-3.85%) comes with a SUNPC "reinvestment offer" of 1 for 1 at SUN's discretion with no guarantee of allocation and closing 17Nov17. SUNPC-CPS2 Subordinated Notes (BBSW + 4.65%) is about to reach it's optional exchange date on 17Dec17.
Suncorp states that "it will consider redeeming, converting or reselling the outstanding CPS2 on that date, subject to a number of factors including satisfactory completion of the Offer and market conditions closer to 18 December 2017. No decision to convert, redeem or resell the CPS2 on 18 December 2017 has yet been made."
My feeling is that most SUNPC holders would prefer to retain their holdings at the higher interest rate but will forego the offer if they miss the 17Nov17 closure date. Notwithstanding an allocation through lead brokers or purchase post listing there are no other entry vehicles left to long standing CPS2 investors except:

• to reinvest and accept the lower interest rate, lower capital gain potential and get an unknown ration of CN2 and maybe some residual CPS2; or,
• to hold CPS2 and risk conversion, redemption or reselling ending up with no holding of CPS2 or CN2.

In my opinion the ANZ CPS3 reinvestment offer was attractive but this SUN CPS2 is not, indeed it is an unfair manipulation of the market; CPS2 holders have not been given sufficient information to prudently consider the CN2 offer.