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To: reaper who wrote (192874)	9/19/2002 5:32:13 PM
From: orkrious	Read Replies (1) \| Respond to of 436258

speaking of Eavis...just posted Peter Eavis AmeriCredit offering 9/19/02 04:12 PM ET I am hearing that AmeriCredit is prepared to issue equity at these beaten down levels. The deal is apparently going to be around 37 million shares in size and is scheduled to take place next Thursday. That would be around $270 million at current prices. Doubt that will satisfy rating agencies, and it's hardly enough to fund the sort of growth the bulls still expect from the company. So bad loans will pile up in a slow-growing book and credit ratios will go through the roof. Meanwhile, cash flows will dwindle, especially if AmeriCredit extends even more loans than they are to avoid hitting delinquency triggers. And I wouldn't be surprised if they write down their I/O strip, the asset on their balance sheet that represents earnings from sold loans. They said they weren't going to do that Q3, but I wouldn't be surprised if it were a Q4 event.