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Non-Tech : RAINFOREST CAFE -- Ignore unavailable to you. Want to Upgrade?


To: Derek Roth who wrote (3575)12/5/1997 11:04:00 AM
From: daniel katcher  Read Replies (1) | Respond to of 4704
 
below is a post from motley fool on the bond issue.

100 Mil is alot of money. at 6% interest a year, that $6 Mil. RAIN has 17.9 Mil shares. 6/17.9 is
.34 EPS less a year. I would think this will have a major effect on next years earnings. I am guessing
that the earnings estimates are going to be adjusted downward. Also the stock price will fall
accordingly.

Lets hope there is a good purpose for this money.



To: Derek Roth who wrote (3575)12/6/1997 2:15:00 AM
From: Dennis Vail  Respond to of 4704
 
Hi Derek!

Here's a repost from MF with a hot but unconfirmed rumor on the Notes:

Subject: Convertibles
Date: Fri, Dec 5, 1997 21:04 EST
From: Superguy
Message-id:

The word I'm hearing from Mpls. is the coupon on the convertibles will be in the 4-4 1/2 % range with a conversion price 25% higher than the stock price at the time of the sale.
(end repost)

Like I say those figures are totally unconfirmed so take 'em lightly. But if RAIN's going to pay over 5% on a 25% conversion price I just might buy some of them puppies for myself. On first glance I'd say you get a lot of the upside of RAIN with a lot less of the risk.

Great to hear from you again, Derek. Hope the family is doing well. Stay warm!!

Regards,
Dennis