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Pastimes : From A to Zeev" -- SI Sacks Zeev -- Ignore unavailable to you. Want to Upgrade?

To: Brooks Jackson who wrote (238)	2/5/1998 9:01:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 708

Brooks, the WDC appears to be quite harmless, except that at maturity it all comes due, principal and interest. These debentures will not be registered, meaning that they will probably be sold under Reg D of the securities act, or even under Reg S to "wealthy" individuals and to institutions, or, if under reg S, to foreign buyers. There are no conversion rights thus there are no floorless implications. There is probably a juicy interest rate, so that if maturity is in let say 6 years, each investor will get back twice the money he has invested (that will be an interest rate of 12%). Of course, you may want to look at how WDC balance sheet will look after this issue, but they need the money and if the interest rates they are asked to pay are not too horrendous, they will probably be OK. Zeev