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

To: Candle stick who wrote (4974)	6/3/1998 8:10:00 PM
From: Mark Myword	Read Replies (2) \| Respond to of 164684

>> Amazon issue zero coupon ie discounted bonds at 10% for 10 years. << CS - thanks for the detailed info. The bond issue by AMZN , was , in my opinion , a rather desperate gamble to get cash, so as to make an all-or-nothing play to become the "brand leader", as some dreamers would call it , on the internet. The equity of this company will shortly be negative , and there is but a remote chance they will ever pay off these bonds , as bankruptcy will consume them long before the ultimate due date. Amazon is a joke - the equity is worthless; what makes you really wonder is: who in the hell bought all those bonds ? I'd rather take my money to Vegas and roll the dice a few times - the odds of making a profit are better !

To: Candle stick who wrote (4974)	6/3/1998 10:56:00 PM
From: Brad Davies	Respond to of 164684

Candle, thanks for reposting the message from Mr. Mynard. I looked at the bond particulars. The indenture is very long and detailed and contains significant covenants. If I recall correctly, any default will give rise to accelleration of the bond.(I can't recall if the accelleration is at a premium to the actual advance plus accrued interest, but I believe it is). Included in the covenants is a provision requiring them to maintain certain financial ratios. If they continue to lose money, the debt will come due much sooner than people expect. Ron