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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (3606)	4/28/1998 10:47:00 PM
From: Gary Korn	Respond to of 164684

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. Bob, You are correct. The press release turned into an 8-k filing does say $275 "gross proceeds." If that is so, and after paying off the $75M note, that leaves AMZN with $200MM cash. And it leaves them with, as you've noted, one helluva 10 year obligation. The yearly interest charge (set off against the discount) will be over $40M!? That's more than the current annual loss!? This is unimaginable. What am I missing? Gary Korn

To: Oeconomicus who wrote (3606)	4/28/1998 11:25:00 PM
From: Gary Korn	Respond to of 164684

4/28/98 Cap. Mkt. Rep. 18:52:00 Capital Markets Report Copyright (c) 1998, Dow Jones & Company, Inc. Tuesday, April 28, 1998 Calendar Of Junk Debt: Amazon.Com -- Del Webb Corp. ========== High-Yield Debt Week Of May 4 ============== Amazon.com Inc. (AMZN) - $275 million (proceeds) Rule 144a senior discount notes due 2008, noncallable for five years, with a five-year zero coupon, via Morgan Stanley Dean Witter. Seattle-based online book seller. American Cellular Corp. - $285 million senior notes due 2008, non-callable for five years, via Merrill Lynch & Co. Proceeds to fund the company's acquisition of White Plains, N.Y.-based PriCellular Corp. Roadshow: April 22 to May 5. AMF Bowling Inc. - $200 million Rule 144a convertible debentures via Goldman Sachs. Price talk: 5.75% to 6.25%, up 18-23%. Portion of proceeds to redeem AMF Gary Korn