Winstar Comm. (WCII) Message Board

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Technology Stocks : Winstar Comm. (WCII)

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To: Alejandro who wrote (5685)	5/3/1998 8:06:00 PM
From: silicon warrior	Read Replies (1) of 12468

I don't agree with Jason.Say the company has 2billion of debt, payable over 15 years, which, with interest, amounts to 4billion. That only means that over a 15v year period the debtholders have first call on the 4billion, not that they have a call on the first 4 billion. Look, it's simple. Any earnings in excess of debt service requirements---i.e., the payment then due,is free cash to the shareholders. Of course, management will likely reinvest earnings, but it's surely not due to the debtholders. I don't understand why anyone would say debt must be fully repaid before there are earnings.

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