Healthscope Notes II

By James Carlisle · 12 Mar 2013

By James Carlisle ·
12 Mar 2013 · 2 min read

In the latest excerpt of our long-running saga Notes you should not buy, you can read all about Healthscope Subordinated Notes II over on Intelligent Investor Super Advisor. Just don't go getting any ideas.

If you don't trust yourself, then here's the gist of it. The notes are subordinated to a large pile of senior debt, and if the company fails to grow earnings it will default on the senior debt and cease payments to the subordinated notes.

So, in essence, the best the notes can offer is their return of around 10.5%, and the worst is to scrub out a large chunk of your money.

As Super Advisor Head Honcho Richard Livingston puts it: "Our recommendation is 'no way'." More prosaically, we say AVOID.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.

Healthscope Notes II

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