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

To: getgo234 who wrote (24936)	11/7/1998 4:12:00 PM
From: OtherChap	Read Replies (1) \| Respond to of 164684

>It is interesting that investors were willing to purchase zero coupon >bonds issued by a new company without any history of profitability. The bond offering attracted no interest inside the US, so they did a rather unusual off-shore bond offering. Some have speculated that companies only do this in desperation, as these kinds of off-shore deals are usually a convenient place for people with large amounts of non-income-tax-paying cash to park some funds. Now, as to the speculation of who those people are, take your pick. Drug lords tend to be at the top of that category of investor, as well as people who are trying to evade taxes for other purposes. Someone even speculated the offering attracted these types of investors because it offers a convenient way to launder large sums of money. But since it was a private offering, we'll never know.

To: getgo234 who wrote (24936)	11/7/1998 4:16:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

The interest rate is 10%. I believe OC did a good job at answering the other question. Glenn

To: getgo234 who wrote (24936)	11/7/1998 5:15:00 PM
From: Jan Crawley	Respond to of 164684

Do you know what interest rate AMZN is paying on its bonds ? Are the bonds zero coupon bonds ? It is interesting that investors No, they are not zero coupon bonds, those are senior-discount-junk bonds. Total borrowed amt(face value) = $550 million Total cash received after prepayment of interests = $325M Prepaid interest = 550 - 325 = $225 million Interest rate = 10%. By year 2005, Amzn will have to (a) pay off the entire $550 million. or (2) Refinance. p.s. Amzn used the $325M to retire a previous loan of $75 million, and also paid a $18 million fee to MSDW for processing or whatever.