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To: Gary Korn who wrote (3598)	4/28/1998 8:51:00 PM
From: Oeconomicus	Read Replies (2) \| Respond to of 164684

Gary, the press release said $275 million "gross proceeds". The face amount of the notes would be the amount they will accrete to by 2003 when they start paying cash interest (I'd guess at least $450 mil, more likely $500 mil). The net proceeds would be the $275 mil less fees and expenses. If you have found further details that indicate $275 mil to be the face amount of notes and $160 mil the net proceeds, please share a link. BTW, it isn't unusual for a bank loan to prohibit acquisitions. That just means that they have to get the bank's consent (and unreasonably withholding consent can be dangerous for banks). The bigger reasons for replacing the $75 mil loan would likely be 1) cancelling the associated warrants (though I'd bet the new lenders are getting a nice kicker too); 2) avoiding the upcoming 1 point bump in the interest rate; 3) extending the final maturity from 30 months to ten years; 4) deferring for five years the payment of any cash interest; and 5) raising a whole helluva lot more money. Regards, Bob