Imation (IMN) Message Board

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Technology Stocks : Imation (IMN)

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To: Robert Dapaah who wrote (38)	4/27/1998 10:30:00 AM
From: Chris Baker	of 103

I'm out of this stock today - better values elsewhere. The company has too much debt and can easily fall into default on this credit agreement (from 10-K filed March 31, 1998): "On March 30, 1998, the Company entered into a Limited Waiver and Amendment to its Credit Agreement, which provides for an extension through January 5, 1999 of the limited waiver granted in December 1997. During the extended waiver period, borrowings under the Credit Agreement will be collateralized by substantially all of the Company's assets and the Company will be required to maintain a specified minimum level of earnings before income taxes, depreciation and amortization (EBITDA). The Company will also incur certain fees and increased interest rates on outstanding borrowings under the Credit Agreement during the extended waiver period. The Credit Agreement also contains a number of provisions restricting the Company's ability to take certain actions, including the incurrence of additional indebtedness, the creation of additional liens, the making of certain restricted payments and the sale of substantial assets of the Company."

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