- 14 - backed notes (Notes). ACC intended through the offering to raise funds for its current operation, including the acquisition of installment contracts which would be (and were) pledged to secure ACC’s obligations under the Notes. The Notes matured in 36 months but could be redeemed by the noteholders at 12 or 24 months. The Notes bore interest at 12 percent during the first year, 13 percent during the second year, and 14 percent during the final year. The Notes were purchased by approximately 50 investors, and approximately five of these investors redeemed their Notes before maturity. East-West Capital Corporation (East-West) sold the Notes on ACC’s behalf and was paid a commission equal to 4 percent of the principal amount of the Notes sold, plus 1 percent of the principal outstanding at 12 months, plus 1 percent of the principal outstanding at 24 months. Included in East-West’s commission was a 1 percent due diligence fee. ACC deducted $29,647, $38,239, and $33,783 of offering expenses, commissions, and professional fees, respectively, for 1993. ACC deducted $36,251, $74,361, and $110,432 of offering expenses, commissions, and professional fees, respectively, for 1994. The deductions for 1993 and 1994 included costs attributable to a second private placement offering that was planned in 1993 and abandoned in 1994.Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011