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To: santhosh mohan who wrote (1383)	1/24/1998 11:00:00 AM
From: Oeconomicus	Respond to of 164684

Santhosh, no footnotes until the audited statements come out. We'll know then what these charges are. Current prepaids usually don't raise red flags because the changes are usually small (and analysts may be lazy? nah.), but the concept is the same, the difference being time. I'll bet right now that most of the charge is deferred loan costs. On a $75mm term loan with strong incentives to prepay, the banks have to get some income somewhere since they won't be earning the spread for long. That income comes from fees. With "junk" debt, the fees and legal costs could easily account for the whole charge. But we'll see. Bob