Clime Convertible Notes
Should CAM Convertible notes (CAMG) be converted to CAM now. - Thanks Rudy.
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Answer
Hi Rudy,
I did look into these for a client a while ago and from memory there was little reason / incentive to convert early. The notes pay 6.25% p/a and mature on 30th November of 2021, with each note convertible to 6 CAM shares. These can be converted at 96c at any time while the last dividend installment will be paid on maturity. If I was long my approach would be to hold the notes til maturity and make a call then around whether or not I want to own CAM shares instead of the notes. I tend to think there are better stocks out there.
