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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (1135)	2/10/2000 9:23:00 AM
From: Mike Maxton	Read Replies (1) \| Respond to of 1438

Secure Computing (SCUR) just filed an 8k, including new financing. Short sells are allowed (up to the number of shares of convertible common), "investors" are Cayman Island residents. Still reading it, doesn't look to be floorless, but I'm not as experienced in these documents as I would like to be. I did find it interesting that they had filed a registration statement for financing back in October, filed a cancellation statement yesterday, with this new 8k. SCUR has gotten a nice pop in it's stock price the last couple of days, with concerns about the "denial of service" hacking going on. But this company has done nothing but lose money, and I have doubts that this new financing is a good thing. mike maxton

To: Zeev Hed who wrote (1135)	2/10/2000 10:29:00 PM
From: Kailash	Respond to of 1438

Zeev - question about MCLL. They've just entered into a joint venture. Yesterday's press release states "the investors will buy an aggregate total of $30 million worth Series A convertible preferred stock in the venture." It appears the joint venture will be "bankruptcy remote" from MCLL. As of the last 10K in September, MCLL had long-term debts of some $786M. They're paying 19.5% interest on most of it, indicative of perceived risk; they also have a large working capital deficit. Net operating loss for the whole of 1999 should be around $173M. Given this information, what are the likely terms of the convertible? Last week and at the time of the deal, the stock was trading around $2; this is what the investors paid. It then surged in three days to 14 and closed today at 11. Appreciate any views you have on this! Kailash