Saba Partnership, Brunswick Corporation, Tax Matters Partnership - Page 33




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         Chase made a $975,298 interest payment to Saba.  Between March 21            
         and 23, 1990, Saba earned interest of $94,384 on the Chase PPNs.             
         On March 23, 1990, Saba sold the Chase PPNs for $160 million in              
         cash and 4 LIBOR notes with a present value somewhere between                
         $37,488,889 and $38,594,384.  Thus, Saba sold the Chase PPNs                 
         worth $200,094,384 ($200 million (principal) plus $94,384                    
         (accrued interest)) for cash and LIBOR notes worth no more than              
         $198,594,384.  The $1,500,000 difference between the value of the            
         Chase PPNs and the total consideration that Saba received                    
         represents Saba's transaction costs.                                         
              Taking into account the $975,298 interest payment that Saba             
         received on the PPNs, Saba walked away from its $200 million                 
         investment in the Chase PPNs with no more than $199,569,682.                 
              On July 13, 1990, Brunswick increased its interest in the 4             
         LIBOR notes held by Saba by purchasing 50 percent of Sodbury's               
         partnership interest.  On August 17, 1990, Saba distributed 3 of             
         the LIBOR notes to Brunswick.  On September 6, 1990, Brunswick               
         sold the 3 LIBOR notes for $26,601,451, resulting in a loss to               
         Brunswick of approximately $2,500,000.  On April 3, 1991, Saba               
         transferred the remaining LIBOR note to SBC.  On July 2, 1991,               
         SBC sold the LIBOR note for $7,040,954, resulting in a loss to               
         Brunswick of approximately $719,000.                                         










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