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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 233.22

+1.8%

Nov 28 9:30 AM EST

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To: Oeconomicus who wrote (775)	11/13/1997 10:19:00 PM
From: Oeconomicus	Read Replies (2) of 164684

Anybody read the 8-k filing disclosing the $75mm term loan from Deutsche Bank? Interesting. It's a three year loan which may be increased to $100mm. Certain provisions give AMZN incentive to repay in the next 6-12 months including warrants that are cancelled if the loan is repaid inside of 12 months and a step up in the LIBOR spread from 3.50% to 4.00% in six months. With $48mm of cash at 9/30, what on EARTH are they doing? Can they really be spending this much money on distribution centers? So much? What else? As for the apparent intent to repay this loan quickly, assuming they will really spend most of it, it would appear that they will sell more stock to repay it (Don W., there's that secondary you were expecting, and a chance for the VC to sell some stock too). Just thought I'd give ya'll something else to talk about. Bob PS: Finally got around to reading my Oct 6 Forbes. Interesting article on page 42 about Yahoo!, short squeezes, Jeff Vinik and the hit Yahoo! shorts took when options started trading on it on Sept 9. Just a note of caution ya'll.

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