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It's a loan. The way loans work is that you make payments on them over time. $300,000/day generates ~100mm/year in revenue. That's enough to repay the loan in 7
by darawk 8y ago
It's a loan. The way loans work is that you make payments on them over time. $300,000/day generates ~100mm/year in revenue. That's enough to repay the loan in 7 years. However, the loan is actually for $625 million, so a bit shorter than that. But you get the point.
- village-idiot 8y ago7 years wouldn’t exactly be a short term security, and a bespoke loan from one guy to himself isn’t something easily sold enough to be called “cash like”.
- darawk 8y ago> 7 years wouldn’t exactly be a short term security Nobody said that it was. They have 74% of the reserves in cash and short term securities. The other 26% is this loan. That is, it is not a short term security.