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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 229.55+0.2%Dec 5 9:30 AM EST

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To: Bill Harmond who wrote (24924)11/7/1998 2:41:00 PM
From: Glenn D. Rudolph  Read Replies (1) of 164684
 
Amazon can either pay off the bonds when they mature with cash from their treasury if
accumulated cash has been sufficient, or they can use credit to retire the bond with
another bond offering. It is quite possible that by then the company will have a higher
credit rating than it has currently, and, consequently, the replacement bonds will carry
more favorable relative rates than the current issue.


William,

You seemed to leave off the likely possibility that Amazon may lose all the cash they are holding and still be losing money. What happens then?

Glenn
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