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Technology Stocks : SSA (SSAX) BPCS/Client Server -- Ignore unavailable to you. Want to Upgrade?

To: kvogel who wrote (434)	1/24/1998 9:56:00 AM
From: MAURICE J. SADOWSKY	Read Replies (1) \| Respond to of 915

I've been doing a lot of reading--so here is what I have been able to summarize on the money trail: THE MONEY TRAIL--(note: doing this on WordPerfect and will transfer--hope it is not a disaster like the last time I tried) 1. On September 12, 1997, the Company issued $138 million of convertible subordinated notes due September 15, 2002 bearing interest at 7%. Of the $138 million received: 1.1 Underwriting Fees $4.1 million 1.2 Repay Bank Line of Credit $44.1 million 1.3 Repay Senior Notes $24.7 million Item 1.3 includes fees to the company's Bank Line of Credit and Note Holders for prepayment of balances due on November 1,1997. The Company expects to use the remaining net proceeds, which is approximately $60 million, together with existing resources to fund and accelerated growth strategy for the Company's new version of its Client/server software product and other general corporate purposes. Management believes that based upon its anticipated operating results, cash generated from operations, combined with current working capital and proceeds from the company's $138 million offering of Public Notes, will provide sufficient liquidity to meet the Company's capital requirements for the foreseeable future. (Information from SEC filing--my condensation). Well--a lot happens between the start and the finish--but the company's cash balance was reported as $83.3 million in the press release dated Dec. 08, 1997 discussing the fourth quarter results--the 10-K not yet out so all numbers are to be confirmed. The press release stated as follows: 2.1 $3.2 million for the break up fee (Bain Capital) 2.2 $6.2 million related to the beneficial conversion feature of a convertibleloan(Computer Associates). 2.3 $1.3 million of finance charges related to paying off the company's former senior lender. 2.4 $2.2 million listed under preferred dividends Well--I am not good enough to lay out a balance sheet--two many things we do not know that are in the agreements--The bottom line is the balance sheet was cleaned up--the company has $83.3 million in cash and debt of $150 million ($138 million in non callable convertible notes) and a good investment banker with a financial commitment to make this thing work!! (Thank you H&Q--my opinion). Maurice