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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (20698)	7/16/1998 5:56:00 AM
From: Bill Wexler	Respond to of 31646

What's kind of amusing is that they probably could have gotten better terms if they simply took a cash advance on their credit card.

To: CalculatedRisk who wrote (20698)	7/16/1998 3:39:00 PM
From: Judge	Read Replies (1) \| Respond to of 31646

Bill, I'm used to translating term sheets into loan/securities agreements but, I have to confess, I'm having a lot of trouble figuring out how you calculate this loan as having a 22% interest rate. I can only surmise, since you haven't laid out for me your underlying calculations -- or your underlying assumptions -- but you seem to be attributing items that would normally be viewed as being amortized over the EXPECTED life of the debt (i.e., through the REQUIRED due date, as opposed to an earlier date on or by which some other event might or was expected to occur, such as a prepayment). I also can't see how you would get to 22% if you were to take into account the $950,000+ that Tava would receive upon exercise of the warrants. On the other hand, I'm certainly willing to listen. I don't mind responding to an analysis I can follow -- whether or not I agree with it -- as long as I understand its logic and its premises. Otherwise, it's difficult to say whether or not a rabbit is being put in the proverbial hat. If you'll lay out your analysis of how this is a 22% interest rate (including your underlying assumptions), I'll try to follow along and get back to you next week (I'm leaving shortly for the airport: I'm speaking tomorrow at the AICPA's annual CAMI conference, on the legal aspects of Y2K). Best regards, Cathleen