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Technology Stocks : America On-Line: will it survive ...?
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To: steve lipson who wrote (5830)11/12/1997 11:55:00 AM
From: vegetarian   of 13594
 
>>I don't believe we know from this if the notes were sold at par..
Yes, I agree that is not clear from the release.
However, since they stated a coupon rate of 4% I would assume those were sold at par.
Also, it would seem unusual that the notes are discounted in a primary offering like this with a coupon rate, does that happen very often?
If the notes were discounted, what disadvantage do they have in mentioning it in the press release? I don't see an advantage of not releasing that detail.

I agree with your second point about the buyers having a possible insider track on future events but that would be risky for AOL if they are caught leaking inside information.
There has to be an incentive somewhere for te buyer to be buying 350M $ worth of the notes, unless the bullish market mania has heavy speculators doing the deed.
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