Amazon.com, Inc. (AMZN) Message Board

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

AMZN 222.50

0.0%

3:59 PM EST

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To: waldo who wrote (25121)	11/9/1998 12:14:00 AM
From: OtherChap	Read Replies (2) of 164684

News: AMZN's junk bond has deadly restrictions.. If they want to do a secondary to repay them, they'll have to do a 3 seperate secondaries at 500 million bucks each because of the percentage restrictions. Stick that in your pipe and smoke it, William. :) Amazon was desperate for this bond offering, which is why the only people who would even think about giving them cash were "investors" who choose to remain offshore, outside of US regulation. **snip****** There are considerable restrictions as to how and if Amazon can convert it's debt to equity. These are bonds trading in the open market. They can't simply be repaid, they must be redeemed. There are strict financial penalties to redeeming the bonds. They basically would have to buy them back from the holders at their accrued value plus a premium. Also, only 35% of the bonds may be redeemed with the proceeds of a secondary offering.

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