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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (11875)	12/22/1999 6:47:00 PM
From: stilts	Read Replies (1) \| Respond to of 21876

Chuz, I'd be shocked if they didn't receive cash. I would guess that the Special Purpose Vehicle (a trust?) bought the $600 mil of receivables from Lu with cash -- by passing on to Lu the cash that the SPV was paid by the outside buyer(s), who received notes (asset-backed certificates) from the SPV representing the right to be paid what the SPV collects on the receivables. This would be non-recourse to Lu, except that, to the extent any of the $600 mil receivables are not collected by the SPV and passed on to the buyer(s), the buyer(s) could foreclose on the excess receivables (collateral) that Lu assigned (but did not sell) to the SPV. (The collateral would presumably revert back to Lu once the buyer(s) receive everything they expected to receive in respect of the $600 mil receivables they purchased.)