- 39 -
* * generated $168,000 in net interest income for
assuming a short-term, unsecured credit position with
Comdisco * * *.
* * * * * * *
Although Comdisco has historically prepaid each
receivable purchase transaction that NationsBank has
funded, the company may elect not to prepay the proposed
purchase. In this situation, NationsBank would hold a 36
month, unsecured loan to Comdisco at 75bp. In electing
not to prepay, Comdisco would reduce its ability to fund
future transactions in the bank market.
* * * * * * *
Based on the credit quality of Comdisco * * * , the
adequate yield * * *, and prepayment history we have
experienced in identical transactions, I recommend
approval of the $88MM TML. * * *
On October 29, 1993, NationsBank purchased from Andantech (on
a nonrecourse basis) a portion of the rents due from Comdisco under
the equipment lease for $87,805,802, pursuant to the lease
receivable purchase agreement. Pursuant thereto, NationsBank
received “designated rights” that included the right to receive the
rents but not the equipment.
The rents purchased by NationsBank (aggregating $94,109,445)
were those payable pursuant to the equipment lease after October
29, 1993, and before the early termination dates. Pursuant to a
Consent and Agreement, Comdisco agreed to make payment of the rents
to NationsBank.
Under the terms of the term note for the purchase of the
equipment, Andantech’s sale of the rents to NationsBank accelerated
the term note. Andantech directed NationsBank to wire transfer the
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