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Non-Tech : Convertible Bonds

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To: Rocky9 who started this subject	9/7/2002 12:00:01 PM
From: Rocky9	of 83

For the high risk takers - ICGE. Internet Capital traded at 212 during the mania. It is now at ~.25. The market thinks that it won't make it. It probably won't. It has too much debt (converts). The debt is selling for ~29. It yields almost 20% currently and 75% to maturity. Obviously the market thinks that it will default. It tried a Dutch auction for its bonds at 27-30 recently. It did not get many takers at 29.50. The bond is still trading there. It has a lot of cash, but not enough to pay off the face of the debt. It has to keep buying the debt to get it paid. It also has some publicly traded securities and a lot of private securities. All the investments are in B-2-B commerce so they currently have little or no value. The faith that is needed here is that the company will be successful in buying the debt at ~30 so that the debt will not take it under. If so, the debt should increase greatly, like TERN's has done. Also, the company has to break-even on a cash-flow basis, which it has said that it would do this year. If those things happen, this could be a home-run.

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