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value of the Chase PPNs and the accrued interest on the PPNs,
less the private placement discount and the cash received upon
the sale of the Chase PPNs, as follows:
Fuji LIBOR Notes
Par value of 2 Chase PPNs $100,000,000
Plus accrued interest (through March 23) 47,192
100,047,192
Less private placement discount (750,000)
99,297,192
Less cash received (80,000,000)
Merrill Lynch origination value $ 19,297,192
Norinchukin LIBOR Notes
Par value of 2 Chase PPNs $100,000,000
Plus accrued interest (through March 23) 47,192
100,047,192
Less private placement discount (750,000)
$ 99,297,192
Less cash received (80,000,000)
Merrill Lynch origination value $ 19,297,192
According to Pepe's computations, Saba received
consideration totaling $198,594,384 consisting of the
$160,000,000 in cash and the Fuji and Norinchukin LIBOR notes
with a combined present value of $38,594,384. The difference
between the par value of the Chase PPNs plus accrued interest
($200,094,384) and the total consideration that Saba received
($198,594,384) reflects the $1,500,000 private placement discount
on the sale of the Chase PPNs.
Contrary to the origination value that Pepe assigned to the
LIBOR notes, Saba listed the value of the LIBOR notes in its
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