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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Joe E. who wrote (9982)	4/8/1999 1:11:00 PM
From: Vendit™	Read Replies (2) \| Respond to of 41369

Joe: I would urge you to re-read the Tribune news release. Looks to me like the Tribune used some of their AOL stock as collatoral for a 30 year loan. Their AOL stock was not sold. WASHINGTON--Tribune Company, the publisher of the Chicago Tribune, said it sold 7 million 30-year debt securities for $1.1 billion based on its stake in America Online. The securities, sold in the form of subordinated debentures, may be exchanged for cash equaling the price of one AOL share upon maturity in 2029. If AOL shares climb between now and 2029, investors could profit from the debt securities. The debt securities allow Tribune to realize the current value of 7 million of the AOL shares it holds without selling the stock. Merrill Lynch managed the debt sale for Tribune. Tribune, which first invested in AOL in 1991, owns 2 million AOL common shares in addition to the shares related to the 30-year debt securities and other hedge transactions. In March it sold 1 million AOL shares. It also entered into a one-year hedge transaction with respect to an additional 1 million shares, it said. news.com