why such high interest on notes?, page-7

Most banks charge approx 7.5% for home loans.

Business loans & asset loans are often charged a lot higher (if not secured against residential property). SKI is paying around 10% which seems fair.

A few poz points about SKI that help me sleep at night are:
1. Modest gearing levels (within the infra industry)
2. Dividends paid from poz net cash inflows (and not borrowed funds)
3. Strong shareholders. eg Lazard are well known as smart value fund managers.
4. Relatively good dividends (approx 9% pa). With inflation pricing, business growth, net revenue growth etc., dividends could double over next 10 yrs.
5. Large enough to be considered blue-chip yet small enough to be a take-over target. That is, 9% income pa with potential premium when it's taken over.
6. Has monopoly asset characteristics in it's field (similar to Macquarie Airports and Transurban).

Unfortunately, share price has been deflated / diluted due to capital raising. However, I hope the sector will gain some love again (when and if there's a bust in the mining sector).

Hope that helps. It's my 2 cents opinion - so do your own homework. :-)