The bonds will be offered in three groups of $250 million principal amount with maturities in 1991, 1996 and 2016.
Charter's plan would provide for distributions to 36 classes of creditors of about $315.2 million in cash, senior and subordinated debt securitites with the principal amount of $129.3 million in cash, and 10,951,269 newly issued class A shares.
The agreement provides for Aetna to receive $100 million in principal amount of subordinated notes and $70 million of a 14percentt pay-in-kind preferred stock, both of which will be issued by the American Re Corporation, the new holding company.
Instead, we urge founders to include a provision entitling the holders of a "majority in principal amount of the notes then outstanding" to agree to amend or waive any provision in the agreements.
The new reorganization plan provides that holders of Resorts International and Resorts Financing will get an additional $20 million in principal amount of the new senior secured series B notes.
In a similar offering dated August 2007, the prospectus noted that because of declining market values of loans, it was likely that the value of the portfolio "on the closing date will be substantially less than the principal amount" of the loans in the pool.
The company will pay $1,072 per $1,000 in principal amount of debentures, plus accrued interest of $4.75, for a total redemption price of $1,076.75.
Although each $1,000 in principal amount of debentures is redeemable for $1,090.94, including accrued interest, the company expects that most debenture holders will convert their notes into shares of its common stock.
As previously announced, eBay received approximately $1.9 billion in cash and a note from the buyer in the principal amount of $125 million.
In addition, the semi-annual coupon payment varies over time as the principal amount changes in response to the inflation rate.
The unpaid principal amount of the mortgages remaining in the pools totaled $174 billion.
