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Technology Stocks : Thermo Tech Technologies (TTRIF) -- Ignore unavailable to you. Want to Upgrade?

To: john b who wrote (4579)	8/9/1998 5:03:00 PM
From: Zeev Hed	Read Replies (4) \| Respond to of 6467

John, I personally doubt that $45 MM will be loaned to TT as Non Recourse loans, but on the other hand, there are many debt instruments that are actually good for stockholders, particularly if the interest rate is lower than the internal rate of return on the assets bought with such debt. If TT indeed has the financing, it could be in the form of an industrial mortgage (or an asset backed loan) in which the plants serve as a collateral (and typically, not at full value). Since I presume that at least $20 MM of the $26 MM floorless (which I also presume has been fully converted) was used to build the current plants and incur the pre-construction standard costs (including possibly buying some equipment and land?), then $40 MM means financing with about 30% down (20 out of $66 MM), which is not unusual in "asset backed" lending. Asset backed lending is not your normal "non recourse loan", but in some circles it could be construed as "non recourse", since the only commitment is to yield the assets in the case of default. Zeev