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Strategies & Market Trends : Three Amigos Stock Thread
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To: Sergio H who wrote (24673)4/22/2001 8:02:05 PM
From: Ken W  Read Replies (2) of 29382
 
Sergio

I stand corrected on the XMSR/RRR/MTNT finance deal:

At the initial closing, Rare Medium purchased $25 million of exchangeable notes of Motient. An additional $25 million may be advanced at Motient's request subject to certain terms and conditions, including the mutual agreement of the parties and certain additional approvals of Motient's financing guarantors. The notes will bear interest of 12-1/2 percent per annum and will be secured by a pledge of shares of stock of XM Satellite Radio Holdings Inc. (Nasdaq: XMSR - news) held by Motient. The notes are pre-payable at any time in cash, or at Motient's election, in shares of XM stock valued at 95 percent at XM's market price at the time of the exchange. The notes are exchangeable at Rare Medium's option for shares of XM stock at $10.41 per share with respect to the initial advance. A portion of the proceeds of the Notes will be applied to required bank facility repayment and subject to financing guarantor approval for availability to Motient.

The only question is how many "notes" did RRRR get from MTNT and the cost base of those notes. If they rec. the notes for mere pennies on the dollar then why would they not sell on excersise of the XMSR stock at 10.41???

I don't have 10c, so that is my 8c worth. <GGGGG>

Ken
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