Highlights
KLSE: SSTEEL-LB (5665LB)       SOUTHERN STEEL BHD MAIN : Industrial Products
Last Price Today's Change   Day's Range   Trading Volume
1.10   0.00 (0.00%)  0.00 - 0.00  0

Overview

Type:Loan Stocks
Sector:
Listing Date:Jan 30, 2015
Maturity Date:Jan 24, 2020
Issue Size:-
Exercise Price:MYR 1.05
Ratio:
Underlying Stock:SSTEEL
Avg Volume (4 weeks):0
52 Weeks Range:0.76 - 1.49

Additional Info

Announcement: [Jan 29, 2015] Profile for Loan Stocks
Issuer:-
Description:5-year 5% redeemable convertible unsecured loan stocks (“RCULS”)
Analyze this stock with MQ Trader system

  Be the first to like this.
 
Solo Can someone explain to me how does this LB work?
28/04/2017 11:21 AM
gforce2 SSTEEL-LB is a loan stock, with fixed interest repayments of 5% (5 sen/yr, paid at half-yearly intervals), from 2015-2020. As far as I can figure, it is a 1:1 conversion to mother share (The RM1.05 exercise price refers to the initial price to buy the loan stock in 2015). Conversion can be done at any time, via your remisier/brokerage.

The reason for the low volume is because -LB stockholders were getting 5 sen annual returns (better than FD) while mother share had no dividend since 2014.

Given that the mother share just declared a 3 sen dividend ... you can expect some interest in this counter, as a cheaper entry to own the mother share.
Note that at RM1.40, loan stock interest works out to only 3.57% p.a.


References:
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4205517
http://www.bursamalaysia.com/market/listed-companies/company-announcements/3644697
28/04/2017 2:36 PM
Jimmy Lim cheap.
15/08/2018 10:03 PM


 

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