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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (124067)	4/24/2001 7:27:09 PM
From: Glenn D. Rudolph	Read Replies (3) \| Respond to of 164684

For the record, I predicted on this thread back when AMZN issued its first big chunk of debt ($1.25 billion some time in '98, I think) that the debt holders would eventually own all of AMZN. Glenn may recall that. If I recall correctly, principal starts coming due in 2003, right? Bob, I recall your comment well about the debt holders. Actually, the original $1.25 billion was zero coupon and I believe no principal need be paid for 10 years. I stopped looking out that far because my opinion is the next bond offering they did in 1999 will terminate them way prior to 2003 or 2008. I may take a look at the 1998 bond offering just out of curiosity. The $700 million issued in 1999 is not zero coupon and does have principal starting 2003 which may be where you arrived at that date. The bond offering was not as advantageous for Amazon in 1999. That has interest of $90 million paid in two annual installments of $45 million. That is a near term problem.

To: Oeconomicus who wrote (124067)	4/24/2001 9:41:30 PM
From: Glenn D. Rudolph	Respond to of 164684

Bob, This is the the first debt offering and no principle is due for ten years. However, interest is due every six months: NOTE 11 -- SUBSEQUENT EVENTS Convertible Subordinated Notes On February 3, 1999, the Company completed an offering of $1.25 billion of 4 3/4% Convertible Subordinated Notes due 2009 (the "Convertible Notes"). The Convertible Notes are convertible into the Company's common stock at a conversion price of $156.055 per share, subject to adjustment in certain events and at the holders' option. Interest on the Convertible Notes is payable semiannually in arrears on February 1 and August 1 of each year, commencing on August 1, 1999. The Convertible Notes are unsecured and are subordinated to all existing and future Senior Indebtedness (as defined in the Convertible Notes indenture) of the Company. The Convertible Notes may be redeemed at the option of the Company prior to February 6, 2002, in whole or in part, at the redemption prices set forth in the Convertible Notes indenture. The Company is obligated to file by May 4, 1999, a shelf registration statement covering resales of the Convertible Notes and the common stock issuable upon conversion of the Convertible Notes. 44 <PAGE> 45 AMAZON.COM, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Upon occurrence of any Fundamental Change (as defined in the Convertible Notes indenture) prior to the maturity of the Convertible Notes, each holder of the Convertible Notes has the right to require the Company to redeem all or any part of the holder's Convertible Notes at a price equal to 100% of the principal amount, plus any accrued interest, of the Convertible Notes being redeemed. The Company has or may use the net proceeds from the offering of the Convertible Notes for general corporate purposes, including working capital to fund anticipated operating losses, the expansion of the Company's core business, investments in new business segments and markets, capital expenditures, acquisitions or investments in complementary businesses, products and technologies and repurchases and retirement of debt.