Amazon.com, Inc. (AMZN) Message Board

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

AMZN 226.19

-1.8%

Dec 12 9:30 AM EST

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To: Chi Pan who wrote (3685)	4/30/1998 10:37:00 AM
From: Oeconomicus	Read Replies (2) of 164684

Who is going to buy those bonds? Not afraid of default? Come on, people have to look that the balance sheet before put their money in. CP, like I said yesterday - for $275mm, they own Amazon and have written a call option. The people who think they own the company really just own a call option giving them the right to buy the company back from the note holders for whatever the future redemption cost of the notes is. If the notes will accrete to a half billion dollars in five years, consider that the strike price. The market is paying $2.3 billion for the right to buy a $275mm company in five years for $500mm or so. If they can't service the debt in five years, the options become worthless and the note holders keep the company. Where can I get some of those notes?

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