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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 177.78

-2.2%

Jan 9 3:59 PM EST

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To: Cooters who wrote (26788)	9/16/2002 12:20:15 PM
From: slacker711	Read Replies (1) of 197157

As a result of this transaction, QUALCOMM will receive approximately $525 million in cash within 60 days, of which QUALCOMM will use approximately $140 million to acquire existing secured debt in Pegaso, upon which QUALCOMM will then own secured debt in Pegaso amounting to approximately $480 million. Prior to the buying of the secured debt, Qualcomm would have $525 million in cash and $340 million in secured debt....for a total of $865 million in assets related to Pegaso. This compares to $720 million in cash investments shown in the most recent QSI breakdown. qualcomm.com I assume that the $145 million represents catch-up interest payments since last July. So....it seems to me that the $145 million will be booked in QSI as a profit. Of this $145 million, $140 million will go back to Pegaso to buy more secured debt. Since Qualcomm is now lending to Telefonica, the interest rates are probably substantially lower on the $480 million in secured loans....but the ongoing interest payments should help offset the losses from Vesper. Slacker

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