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To: Glenn D. Rudolph who wrote (37503)1/28/1999 7:28:00 PM
From: IceShark  Read Replies (2) | Respond to of 164684
 
Glenn, What Yo is saying is that the bond requires a cash interest payment, not PaymentInKind (PIK), i.e. new paper, or in other words a zero coupon.

This is really quite extraordinary. I liken it to a preferred issue with a common stock appreciation kicker. So, the cash interest will go out, every quarter or whatever the payment dates are. I am struck by the low interest rate of 4.75 (which it looks like the fix will be at) and the demand for the issue (150% above original sizing this morning). Jeez, I wish I could syndicate my life for these rates! But then I think I would have to sign my soul over to the devil for eternity. -g-

Regards, Ice



To: Glenn D. Rudolph who wrote (37503)1/28/1999 11:43:00 PM
From: Yojimbo  Read Replies (1) | Respond to of 164684
 
Glenn - Is this paper stock? I am missing how the bond owner receives the interest during the term.

no, cash pay. paper would be if it had been pik (paid-in-kind).

ergo, bozos must come up with $59.4-68.3 million ea yr to meet interest (the higher amt if MSDW exercises the shoe). what he'll do is pay it out of the amt he borrowed.

y


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