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Technology Stocks : Source Media SRCM -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Podsiadlik who wrote (2704)	6/24/1999 11:40:00 AM
From: MW	Respond to of 3015

<<Their last deadline for an interest payment on their big debt was on May 1st. Since their offices haven't been vacated (I checked), presumably the gathered the cash for that one. So, technically, they don't have to have anything before November 1st at the earliest.>> You know kev, I gave up expecting you to comprehend the "deal" but there really is no excuse for you not to understand that the interest payments on the debt are held in escrow and the first interest payment not being held in escrow is not due until May 1, 2000. I guess they didn't have to "gather" any cash to meet their last payment. <<In October 1997, the Company issued $100.0 million of Senior Secured Notes (the "Notes") and $20.0 million of preferred stock. The interest escrow account created pursuant to the indenture has been and will be used to fund the first four interest payments on the Notes. Interest payments from the interest escrow account were made on May 1, 1998, November 1, 1998 and May 1, 1999. The Company's primary source of liquidity is its cash, cash equivalents and short-term investments, which totaled $21.2 million at March 31, 1999. This cash position consisted of $11.9 million held in escrow for interest payments, (a portion of which was used for the May 1, 1999 interest payment) and $9.3 million of operating cash. The Company's first interest payment not currently held in escrow is due May 1, 2000. >>