To: i-node who wrote (558 ) 4/24/2003 12:51:27 AM From: pcstel Read Replies (1) | Respond to The XMSR financing arrangement was handled perfectly, GIVEN that they got caught in a jam when the stock price was low. Ideally, they would have issued enough stock when the price was in the 10s to handle the financing, but they could not have forecasted the drop in the markets that made the financing such a problem The original agreement called for XM to pay GM annually. XM said, hey, we need to reserve the cash for operations and GM said, "that's fine, but you have to pay us interest and collateralize the debt". Nobody, NOBODY, who understands the basics of finance would find anything strange about this arrangement. It is done every day, I've arranged hundreds of such deals for my clients in the past, but for smaller amounts.
