IR PASS-THROUGH CORP.
c/o Winthrop Managment LLC
Five Cambridge Center
Cambridge, MA 02142
Integrated ARROs Fund II (the "Fund")
February, 2000
Dear Unitholder:
Enclosed for your review are the Fund's audited financial statements as of
December 31, 1999. As you are aware, the Funds' investments are passive in
nature and consist of interest-bearing payment obligations that originated from
a series of net lease real estate partnerships. As such, the primary source of
payment for these obligations is the lease payments received from the
partnerships' corporate tenants. We are pleased to report that all tenant
obligations continue to be met and, on an overall basis, the credit ratings of
these tenants have not materially changed since the initial offering of the
Units.
As previously reported, the Fund has made arrangements with Royal Alliance
Associates (212-551-5100) to act as a market maker and with DCC Securities Corp.
(800-945-0440) to facilitate trading, as a broker, between buyers and sellers of
Units. Please contact these firms directly if you have any questions regarding
such activities.
If you have any specific questions regarding your holdings in the Fund, please
call the Trustee, Bankers Trust Company at (800) 735-7777.
Sincerely,
Integrated ARROs Fund II
By: IR Pass-through Corp., Sponsor
<PAGE>
To the Unit-holders, Board of Directors of the Sponsor, and Trustee
of Integrated ARROS Fund II
INDEPENDENT AUDITOR'S REPORT
We have audited the accompanying statements of financial condition of Integrated
ARROS Fund II (the "Fund") as of December 31, 1999 and 1998, including the
schedule of portfolio investments as of December 31, 1999, and the related
statements of operations and changes in net assets for the years then ended and
the schedule of selected per unit operating performance, ratios and supplemental
data for each of the two years in the period ended December 31, 1999. These
financial statements and the selected per unit operating performance, ratios and
supplemental data are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and the
selected per unit operating performance, ratios and supplemental data based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the selected per
unit operating performance, ratios and supplemental data are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financing statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and the selected per unit operating
performance, ratios and supplemental data referred to above present fairly, in
all material respects, the financial position of Integrated ARROS Fund II as of
December 31, 1999 and 1998, and the results of its operations and changes in its
net assets for the years then ended and the selected per unit operating
performance, ratios and supplemental data for each of the two years in the
period ended December 31, 1999, in conformity with generally accepted accounting
principles.
As explained in Note 2, the financial statements include investments in payment
obligations valued at $12,581,437 and $12,842,135 as of December
31, 1999 and 1998, whose values have been stated at the lower of fair market
value, as estimated by the Board of Directors of the Sponsor in the absence of
readily ascertainable market values, or Minimum Termination Amount. We have
reviewed the procedures used by the Board of Directors in arriving at its
estimate of fair market value of such investments and have inspected underlying
documentation, and, in the circumstances, we believe the procedures are
reasonable and the documentation appropriate. However, because of the inherent
uncertainty of valuation, those estimated values may differ significantly from
the values that would have been used had a ready market for the investments
existed, and the differences could be material.
/s/Hays & Company
- -----------------
Hays & Company
February 18, 2000
New York, New York
<PAGE>
<TABLE>
<CAPTION>
Integrated ARROs Fund II
Statements of Financial Condition
December 31,
---------------------------
Assets 1999 1998
----------- -----------
<S> <C> <C>
Cash and Cash Equivalents $242,933 $240,801
Investments in payment obligations, at minimum
termination value (cost $4,349,927) 12,581,437 12,842,135
----------- -----------
Total Assets 12,824,370 13,082,936
Liabilities
Distributions Payable 242,933 240,801
----------- -----------
Net Assets $12,581,437 $12,842,135
=========== ===========
Net Asset Value per unit (7,446 units outstanding) $1,689.69 $1,724.70
=========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Integrated ARROs Fund II
Statements of Operations
Year Ended December 31,
-------------------------
1999 1998
<S> <C> <C>
Investment Income:
Interest and discount earned, net of fund expenses $1,460,552 $1,123,689
========== ==========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Integrated ARROs Fund II
Statements of Changes in Net Assets
Year Ended December 31,
------------------------------
1999 1998
------------ ------------
<S> <C> <C>
Decrease in net assets from operations:
Net investment income $1,460,552 $1,123,689
------------ ------------
Net increase in net assets resulting from operations 1,460,552 1,123,689
Total declared as distributions to Unit Holders (1,721,250) (1,373,206)
------------ ------------
Net decrease in net assets (260,698) (249,517)
Net assets:
Beginning of period 12,842,135 13,091,652
------------ ------------
End of period $12,581,437 $12,842,135
============ ============
</TABLE>
See notes to financial statements.
<PAGE>
Integrated ARROs Fund II
Notes to Financial Statements
1. ORGANIZATION
Integrated ARROs Fund II (the "Fund") is a grantor trust created under
the laws of the State of New York and registered under the Investment
Company Act of 1940 as a closed-end, non-diversified management
investment company.
The Fund was formed in July 1987 for the purpose of realizing
appreciation in value and deferring the receipt of income through
investments in a portfolio consisting of five contract rights for the
payment of money (the "Payment Obligations"). The Payment Obligations
were sold to the Fund by IR Pass-through Corporation (the "Sponsor"),
formerly a wholly-owned subsidiary of Integrated Resources, Inc.
("Integrated"). The Payment Obligations were originally entered into by
five privately offered, single purpose limited partnerships (the
"Partnership(s)") previously sponsored by Integrated that had acquired
and net leased commercial real estate. Pursuant to the Consummation of
Integrated's Plan of Reorganization ("the Plan"), on November 3, 1994,
the Sponsor is a wholly-owned indirect subsidiary of Presidio Capital
Corp. ("Presidio") (See Footnote 3). All capitalized terms, herein not
defined, have the same meaning as defined in the Trust Indenture.
2. SIGNIFICANT ACCOUNTING POLICIES
Security Valuation
The Payment Obligations are valued at the lower of fair market value (as
determined by the Board of Directors of the Sponsor) or Minimum
Termination Amount (as defined in the Trust Indenture).
Federal Income Taxes
The Fund is classified as a grantor trust. As a consequence, the Fund is
not subject to Federal Income Taxation.
Cash and Cash Equivalents
Cash and cash equivalents represents payment obligations received by the
Fund and which were invested in U. S. Treasury bills with maturities of
three months or less.
Use of Estimates
The preparation of the financial statements in conformity with Generally
Accepted Accounting Principles requires management to make estimates and
assumptions that affect the reported amounts for Investments in payment
obligations and the reported amounts for Net investment income. Actual
results could differ from these estimates.
3. THE SPONSOR
IR Pass-through Corporation is the Sponsor of the Fund and was/is a
wholly owned subsidiary of Integrated Resources, Inc. ("Integrated") and
its post-bankruptcy successor, Presidio Capital Corp. ("Presidio").
Presidio is an indirect but wholly owned subsidiary of NorthStar Capital
Investment Corp., the majority shareholder of Presidio.
<PAGE>
Subject to the rights of the unitholders under the Trust Indenture,
Presidio is responsible for the administration of the Fund through its
indirect ownership of all of the shares of the Sponsor. NorthStar
Presidio Management Company, LLC ("NorthStar Presidio"), an affiliate of
NorthStar Capital, provided administrative services to Presidio through
October 25, 1999. Thereafter, administrative services were provided to
Presidio by AP-PCC III, L.P. ("AP-PCC"), an unaffiliated third party.
NorthStar Presidio and AP-PCC in turn provided services to the Fund. The
board of directors of Presidio is authorized to designate the officers
and directors of the Sponsor, whose names, titles, principal occupations
during the past five years and the date they began office is set forth in
Note 5, Commitments and Contingencies.
<PAGE>
4. THE PAYMENT OBLIGATIONS
The five Payment Obligations acquired by the Fund were issued from 1981
to 1983 for the sale to the Partnerships of rights to acquire interests
in properties or for services rendered. Two of the five Payment
Obligations (Trefar and Zebon) were satisfied in full during 1996.
Payments on the remaining three Payment Obligations are scheduled over a
period not in excess of 40 years from commencement of the initial terms
("Primary Terms") (approximately 25 years), of the respective net leases.
Interest at simple interest rates ranging from 16.5% to 19.625% accrues
on the principal amounts of each Payment Obligation. Payments on the
Payment Obligations are scheduled to commence approximately 15 years
after commencement of the Primary Terms of each net lease.
If a net lease is not extended by the lessee beyond the Primary Term, the
Partnership's obligation to pay the balance of the principal of a Payment
Obligation and accrued interest does not accelerate. In such event, the
Partnership may either seek to re-lease or to sell the property, but
there can be no assurance that such a sale or new lease would be made or
that it would be made in a timely manner. If a sale is made, the balance
of the principal and accrued interest thereon may be declared by the
Fund, at its discretion, to be immediately due and payable. Upon the
disposition by a Partnership of its entire interest in the property (or
properties), the Partnership shall be obligated to pay the Fund (after
satisfaction of any obligations senior to that of the Payment Obligation
which are then due and payable) first, accrued unpaid interest and then
the unpaid principal balance of the payment Obligation. The Fund does not
have the right to accelerate the payment of any Payment Obligation in the
event that a Partnership does not sell its property at the end of the
Primary Term, so long as the Partnership remains current on its payments
under the Payment Obligation. As such, it is possible that the Fund may
not realize the entire outstanding principal and interest thereon of the
related Payment Obligation.
5. COMMITMENTS AND CONTINGENCIES
The Trust Indenture provides that the Sponsor will bear all costs of
administering the Fund through the period in which the Fund will be
receiving only primary term payments. However, when the Fund begins
receiving renewal term payments, the Fund shall bear a portion of such
costs equal to the percentage of the renewal term payments received by
the Fund in such year to all of the payments received by the Fund in such
year.
The Trust Indenture provides that the above obligations of the Sponsor
were to be funded through the retention of a portion of the proceeds from
the sale of the Units. However, the Sponsor did not segregate from the
general assets of its then parent, Integrated, a portion of the sale
proceeds for this purpose. Integrated filed for bankruptcy on February
13, 1990 under Chapter 11 of the United States Bankruptcy code. While
<PAGE>
Integrated's bankruptcy did not directly affect the Fund, and had no
effect on the portfolio of the Fund, the bankruptcy did affect the
Sponsor, which had no source of revenues other than Integrated. The
Sponsor therefore filed a claim in Integrated's bankruptcy proceedings
for the amounts necessary to fund the Sponsor's obligations to the Fund
and to Integrated ARROs Fund I, an affiliate. As Integrated's liabilities
far exceeded its assets, and the Sponsor's claim was that of an unsecured
general creditor, it was unlikely that amounts eventually paid on the
Sponsor's claim would be sufficient to fund the Sponsor's obligations.
However, in 1994 in full settlement of the Sponsor's claim, Integrated
paid the Sponsor $450,000. The Sponsor projected at that time, based on a
present value estimate of legal, accounting, trustee fees, and printing
and mailing costs, that this amount would enable the Sponsor to meet its
obligations to the Fund, and its similar obligations to Fund I, through
approximately the year 2000. However, at that time there was no assurance
that the $450,000 paid by Integrated, plus any interest accrued (the
"Settlement Fund"), would in fact be sufficient to fund the Sponsor's
obligations through the year 2000. As of December 31, 1997, approximately
$61,000 remained of the original Settlement Fund. However, the Settlement
Fund was fully depleted during the first half of 1998. The Trustee may
establish a reserve fund, set aside out of the proceeds of the Payment
Obligations, to pay future expenses of administering the Fund.
Consequently, the Trustee paid $33,558 and $14,145 in such expenses from
the proceeds of Payment Obligations received by the Fund in 1999 and
1998, respectively.
Set forth below is certain information with respect to the Sponsor's
directors and officers. The business address for each of them is c/o
Winthrop Management, LLC, Five Cambridge Center, Cambridge, Massachusetts
02142.
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OCCUPATIONS
NAME POSITION WITH SPONSOR DIRECTOR/OFFICER SINCE DURING PAST 5 YEARS
---- --------------------- ---------------------- ------------------------------------
<S> <C> <C> <C>
Dallas E. Lucas Director, Vice President August 1998 Mr. Lucas joined NorthStar Capital in
August 1998. From 1994 until then he
And Treasurer was the Chief Financial Officer of
Crescent Real Estate Equities
Company. Prior to that he was a
financial consulting and audit
manager in the real estate services
group of Arthur Andersen LLP
David King Director and President November 1997 Mr. King joined NorthStar Capital in
November 1997. From 1990 to 1997
Mr. King was associated with Olympia
& York Companies (USA) where he held
the position of Senior Vice President
of Finance. Prior to that Mr. King
was employed with Bankers Trust in
its real estate finance group.
Charles Humber Vice President and Secretary November 1997 Mr. Humber joined NorthStar Capital
in September 1997. From 1996 to 1997
Mr. Humber was employed with Merrill
Lynch in its real estate investment-
banking group. Prior to that
Mr. Humber was a student at Brown
University.
Steven Kauff Director and Vice President July 1999 Mr. Kauff joined NorthStar Capital
in July 1999. From 1996 to 1999
Mr Kauff was a Manager in the Real
Estate and Hospitality Services
Group of Arthur Andersen LLP. Prior
to joining Arthur Andersen LLP, Mr.
Kauff was with Price Waterhouse LLP
in the Real Estate Industry Services
Group.
</TABLE>
6. DISTRIBUTION PAYABLE
The Trustee declared a $242,933 ($32.63 per unit) distribution payable to
unitholders of record as of December 31, 1999. Such distribution was paid
on January 14, 2000.
<PAGE>
7. SIGNIFICANT TRANSACTIONS
The Trust Indenture provides for the acceptance of involuntary sale (such
as in an economic discontinuance) proceeds in prepayment of a payment
obligation in which the underlying partnership has a single property
(lease). However, it does not specifically provide for acceptance of
involuntary sale proceeds in partial prepayment of a payment obligation
where the underlying partnership has more than one property (lease)
comprising the payment obligation. The Sponsor believes that the original
intent of the Trust Indenture was to allow for such partial prepayment.
However, the Trustee did not agree with such interpretation.
Effective March 29, 1998, the Sponsor arranged for the replacement of the
Trustee for both ARROs Fund I and the Fund with a new trustee (the
"Successor Trustee") which had a broader interpretation of the Trust
Indenture with regard to partial prepayments received from a
multi-property partnership. On April 1, 1998, a supplemental agreement to
the original Trust Indenture was entered into between the Successor
Trustee for the Fund, the Sponsor of the Fund, and the Partnerships that
have Payment Obligations to the Fund. Such agreement allows for, among
other things, the partial prepayment of a multi-property Partnership's
Payment Obligation in the event of an involuntary sale of one of its
properties
<PAGE>
<TABLE>
<CAPTION>
Integrated ARROs Fund II
Schedule of Selected Per Unit Operating Performance, Ratios and Supplemental Data
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------------------------
1999 1998 1997 1996 1995
--------- --------- --------- --------- ---------
Per Unit Operating Performance
- ------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1,724.70 $1,758.21 $1,679.14 $2,690.44 $2,399.26
Net investment income 196.15 150.91 189.13 295.66 291.18
Distributions (231.16) (184.42) (110.06) (1,306.96) 0.00
Net asset value, end of period $1,689.69 $1,724.70 $1,758.21 $1,679.14 $2,690.44
Total investment return $196.15 $150.91 $189.13 $295.66 $291.18
Ratios/Supplemental Data
Net assets, end of period $12,581,437 $12,842,135 $13,091,652 $12,502,874 $20,033,008
Ratio of expenses to average net assets 0.26% 0.11% N/A N/A N/A
Ratio of net investment income to average
net assets 11.49% 8.67% 11.00% 13.53% 11.44%
Portfolio turnover rate N/A N/A N/A N/A N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Partnership/ Discount To
Date Payment Original Simple Arrive at Minimum
Obligation Property Type of Principal Interest Accrued Termination
Incurred Lessee Location Property Amount Rate Interest Amount
- -------- ------ -------- -------- ------ ---- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Bradall Albertson's Boise, ID Department $1,940,000 16.500% $4,682,621 $2,168,016
12/16/82 Inc. Snohomish, WA Stores
Las Cruces, NM
Sioux Falls, SD
Bradenton, FL
Dalhill The Kroger Houston, TX Supermarkets 1,485,000 19.625% 3,233,510 891,080
01/15/82 Company Dallas, TX
Columbus, OH
Cincinnati, OH
Louisville, KY (2)
Walmad Walgreen Windsor, WI Warehouse/ 1,500,000 18.500% 4,192,341 1,392,939
02/25/82 Company Distribution
Facility
---------- ----------- ----------
$4,925,000 $12,108,472 $4,452,035
========== =========== ==========
<CAPTION>
Partnership/
Date Payment Periodic Minimum
Obligation Payment During Termination
Incurred Primary Term (1) Amount
- -------- ---------------- ------
<S> <C> <C>
Bradall 7/1/98-1/1/08 $4,454,605
12/16/82 $387,871/semi.
Dalhill 1/31/97-12/31/06 3,827,430
01/15/82 $57,242/mo.
Walmad 4/1/97-3/1/02 4,299,402
02/25/82 $23,125/mo.;
4/1/02-3/1/07
$92,551/mo.
----------
$12,581,437
===========
</TABLE>
(1) Primary Term of the applicable net lease.
(2) Two properties.
<PAGE>
<TABLE>
<CAPTION>
INTEGRATED ARROS FUND II
SCHEDULE OF ACCRUED INTEREST ON OUTSTANDING PAYMENT OBLIGATIONS
JANUARY 1, 1999 THROUGH DECEMBER 31, 1999
ACCRUED ACCRUED ACCRUED ACCRUED ACCRUED
DATE INTEREST DATE INTEREST DATE INTEREST DATE INTEREST DATE INTEREST
---- -------- ---- -------- ---- -------- ---- -------- ---- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
01-Jan-99 12,493,784 23-Feb-99 12,542,509 17-Apr-99 12,510,867 09-Jun-99 12,479,225 01-Aug-99 12,059,712
02-Jan-99 12,496,219 24-Feb-99 12,544,944 18-Apr-99 12,513,303 10-Jun-99 12,481,661 02-Aug-99 12,062,148
03-Jan-99 12,498,655 25-Feb-99 12,547,380 19-Apr-99 12,515,738 11-Jun-99 12,484,097 03-Aug-99 12,064,584
04-Jan-99 12,501,091 26-Feb-99 12,549,816 20-Apr-99 12,518,174 12-Jun-99 12,486,532 04-Aug-99 12,067,020
05-Jan-99 12,503,526 27-Feb-99 12,552,252 21-Apr-99 12,520,610 13-Jun-99 12,488,968 05-Aug-99 12,069,455
06-Jan-99 12,505,962 28-Feb-99 12,554,687 22-Apr-99 12,523,046 14-Jun-99 12,491,404 06-Aug-99 12,071,891
07-Jan-99 12,508,398 01-Mar-99 12,476,756 23-Apr-99 12,525,481 15-Jun-99 12,493,839 07-Aug-99 12,074,327
08-Jan-99 12,510,834 02-Mar-99 12,479,192 24-Apr-99 12,527,917 16-Jun-99 12,496,275 08-Aug-99 12,076,762
09-Jan-99 12,513,269 03-Mar-99 12,481,627 25-Apr-99 12,530,353 17-Jun-99 12,498,711 09-Aug-99 12,079,198
10-Jan-99 12,515,705 04-Mar-99 12,484,063 26-Apr-99 12,532,788 18-Jun-99 12,501,147 10-Aug-99 12,081,634
11-Jan-99 12,518,141 05-Mar-99 12,486,499 27-Apr-99 12,535,224 19-Jun-99 12,503,582 11-Aug-99 12,084,069
12-Jan-99 12,520,576 06-Mar-99 12,488,935 28-Apr-99 12,537,660 20-Jun-99 12,506,018 12-Aug-99 12,086,505
13-Jan-99 12,523,012 07-Mar-99 12,491,370 29-Apr-99 12,540,095 21-Jun-99 12,508,454 13-Aug-99 12,088,941
14-Jan-99 12,525,448 08-Mar-99 12,493,806 30-Apr-99 12,542,531 22-Jun-99 12,510,889 14-Aug-99 12,091,377
15-Jan-99 12,527,883 09-Mar-99 12,496,242 01-May-99 12,464,600 23-Jun-99 12,513,325 15-Aug-99 12,093,812
16-Jan-99 12,530,319 10-Mar-99 12,498,677 02-May-99 12,467,036 24-Jun-99 12,515,761 16-Aug-99 12,096,248
17-Jan-99 12,532,755 11-Mar-99 12,501,113 03-May-99 12,469,471 25-Jun-99 12,518,196 17-Aug-99 12,098,684
18-Jan-99 12,535,191 12-Mar-99 12,503,549 04-May-99 12,471,907 26-Jun-99 12,520,632 18-Aug-99 12,101,119
19-Jan-99 12,537,626 13-Mar-99 12,505,984 05-May-99 12,474,343 27-Jun-99 12,523,068 19-Aug-99 12,103,555
20-Jan-99 12,540,062 14-Mar-99 12,508,420 06-May-99 12,476,778 28-Jun-99 12,525,504 20-Aug-99 12,105,991
21-Jan-99 12,542,498 15-Mar-99 12,510,856 07-May-99 12,479,214 29-Jun-99 12,527,939 21-Aug-99 12,108,426
22-Jan-99 12,544,933 16-Mar-99 12,513,292 08-May-99 12,481,650 30-Jun-99 12,530,375 22-Aug-99 12,110,862
23-Jan-99 12,547,369 17-Mar-99 12,515,727 09-May-99 12,484,085 01-Jul-99 12,064,573 23-Aug-99 12,113,298
24-Jan-99 12,549,805 18-Mar-99 12,518,163 10-May-99 12,486,521 02-Jul-99 12,067,008 24-Aug-99 12,115,734
25-Jan-99 12,552,240 19-Mar-99 12,520,599 11-May-99 12,488,957 03-Jul-99 12,069,444 25-Aug-99 12,118,169
26-Jan-99 12,554,676 20-Mar-99 12,523,034 12-May-99 12,491,393 04-Jul-99 12,071,880 26-Aug-99 12,120,605
27-Jan-99 12,557,112 21-Mar-99 12,525,470 13-May-99 12,493,828 05-Jul-99 12,074,315 27-Aug-99 12,123,041
28-Jan-99 12,559,548 22-Mar-99 12,527,906 14-May-99 12,496,264 06-Jul-99 12,076,751 28-Aug-99 12,125,476
29-Jan-99 12,561,983 23-Mar-99 12,530,341 15-May-99 12,498,700 07-Jul-99 12,079,187 29-Aug-99 12,127,912
30-Jan-99 12,564,419 24-Mar-99 12,532,777 16-May-99 12,501,135 08-Jul-99 12,081,623 30-Aug-99 12,130,348
31-Jan-99 12,566,855 25-Mar-99 12,535,213 17-May-99 12,503,571 09-Jul-99 12,084,058 31-Aug-99 12,132,783
01-Feb-99 12,488,923 26-Mar-99 12,537,649 18-May-99 12,506,007 10-Jul-99 12,086,494 01-Sep-99 12,054,852
02-Feb-99 12,491,359 27-Mar-99 12,540,084 19-May-99 12,508,442 11-Jul-99 12,088,930 02-Sep-99 12,057,288
03-Feb-99 12,493,795 28-Mar-99 12,542,520 20-May-99 12,510,878 12-Jul-99 12,091,365 03-Sep-99 12,059,724
04-Feb-99 12,496,230 29-Mar-99 12,544,956 21-May-99 12,513,314 13-Jul-99 12,093,801 04-Sep-99 12,062,159
05-Feb-99 12,498,666 30-Mar-99 12,547,391 22-May-99 12,515,750 14-Jul-99 12,096,237 05-Sep-99 12,064,595
06-Feb-99 12,501,102 31-Mar-99 12,549,827 23-May-99 12,518,185 15-Jul-99 12,098,672 06-Sep-99 12,067,031
07-Feb-99 12,503,538 01-Apr-99 12,471,896 24-May-99 12,520,621 16-Jul-99 12,101,108 07-Sep-99 12,069,466
08-Feb-99 12,505,973 02-Apr-99 12,474,331 25-May-99 12,523,057 17-Jul-99 12,103,544 08-Sep-99 12,071,902
09-Feb-99 12,508,409 03-Apr-99 12,476,767 26-May-99 12,525,492 18-Jul-99 12,105,980 09-Sep-99 12,074,338
10-Feb-99 12,510,845 04-Apr-99 12,479,203 27-May-99 12,527,928 19-Jul-99 12,108,415 10-Sep-99 12,076,774
11-Feb-99 12,513,280 05-Apr-99 12,481,639 28-May-99 12,530,364 20-Jul-99 12,110,851 11-Sep-99 12,079,209
12-Feb-99 12,515,716 06-Apr-99 12,484,074 29-May-99 12,532,799 21-Jul-99 12,113,287 12-Sep-99 12,081,645
13-Feb-99 12,518,152 07-Apr-99 12,486,510 30-May-99 12,535,235 22-Jul-99 12,115,722 13-Sep-99 12,084,081
14-Feb-99 12,520,587 08-Apr-99 12,488,946 31-May-99 12,537,671 23-Jul-99 12,118,158 14-Sep-99 12,086,516
15-Feb-99 12,523,023 09-Apr-99 12,491,381 01-Jun-99 12,459,740 24-Jul-99 12,120,594 15-Sep-99 12,088,952
16-Feb-99 12,525,459 10-Apr-99 12,493,817 02-Jun-99 12,462,175 25-Jul-99 12,123,030 16-Sep-99 12,091,388
17-Feb-99 12,527,895 11-Apr-99 12,496,253 03-Jun-99 12,464,611 26-Jul-99 12,125,465 17-Sep-99 12,093,823
18-Feb-99 12,530,330 12-Apr-99 12,498,688 04-Jun-99 12,467,047 27-Jul-99 12,127,901 18-Sep-99 12,096,259
19-Feb-99 12,532,766 13-Apr-99 12,501,124 05-Jun-99 12,469,482 28-Jul-99 12,130,337 19-Sep-99 12,098,695
20-Feb-99 12,535,202 14-Apr-99 12,503,560 06-Jun-99 12,471,918 29-Jul-99 12,132,772 20-Sep-99 12,101,131
21-Feb-99 12,537,637 15-Apr-99 12,505,996 07-Jun-99 12,474,354 30-Jul-99 12,135,208 21-Sep-99 12,103,566
22-Feb-99 12,540,073 16-Apr-99 12,508,431 08-Jun-99 12,476,790 31-Jul-99 12,137,644 22-Sep-99 12,106,002
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ACCRUED ACCRUED
DATE INTEREST DATE INTEREST
---- -------- ---- --------
<S> <C> <C> <C>
23-Sep-99 12,108,438 15-Nov-99 12,076,796
24-Sep-99 12,110,873 16-Nov-99 12,079,232
25-Sep-99 12,113,309 17-Nov-99 12,081,667
26-Sep-99 12,115,745 18-Nov-99 12,084,103
27-Sep-99 12,118,180 19-Nov-99 12,086,539
28-Sep-99 12,120,616 20-Nov-99 12,088,974
29-Sep-99 12,123,052 21-Nov-99 12,091,410
30-Sep-99 12,125,488 22-Nov-99 12,093,846
01-Oct-99 12,047,556 23-Nov-99 12,096,281
02-Oct-99 12,049,992 24-Nov-99 12,098,717
03-Oct-99 12,052,428 25-Nov-99 12,101,153
04-Oct-99 12,054,863 26-Nov-99 12,103,589
05-Oct-99 12,057,299 27-Nov-99 12,106,024
06-Oct-99 12,059,735 28-Nov-99 12,108,460
07-Oct-99 12,062,170 29-Nov-99 12,110,896
08-Oct-99 12,064,606 30-Nov-99 12,113,331
09-Oct-99 12,067,042 01-Dec-99 12,035,400
10-Oct-99 12,069,478 02-Dec-99 12,037,836
11-Oct-99 12,071,913 03-Dec-99 12,040,271
12-Oct-99 12,074,349 04-Dec-99 12,042,707
13-Oct-99 12,076,785 05-Dec-99 12,045,143
14-Oct-99 12,079,220 06-Dec-99 12,047,579
15-Oct-99 12,081,656 07-Dec-99 12,050,014
16-Oct-99 12,084,092 08-Dec-99 12,052,450
17-Oct-99 12,086,527 09-Dec-99 12,054,886
18-Oct-99 12,088,963 10-Dec-99 12,057,321
19-Oct-99 12,091,399 11-Dec-99 12,059,757
20-Oct-99 12,093,835 12-Dec-99 12,062,193
21-Oct-99 12,096,270 13-Dec-99 12,064,628
22-Oct-99 12,098,706 14-Dec-99 12,067,064
23-Oct-99 12,101,142 15-Dec-99 12,069,500
24-Oct-99 12,103,577 16-Dec-99 12,071,936
25-Oct-99 12,106,013 17-Dec-99 12,074,371
26-Oct-99 12,108,449 18-Dec-99 12,076,807
27-Oct-99 12,110,885 19-Dec-99 12,079,243
28-Oct-99 12,113,320 20-Dec-99 12,081,678
29-Oct-99 12,115,756 21-Dec-99 12,084,114
30-Oct-99 12,118,192 22-Dec-99 12,086,550
31-Oct-99 12,120,627 23-Dec-99 12,088,986
01-Nov-99 12,042,696 24-Dec-99 12,091,421
02-Nov-99 12,045,132 25-Dec-99 12,093,857
03-Nov-99 12,047,567 26-Dec-99 12,096,293
04-Nov-99 12,050,003 27-Dec-99 12,098,728
05-Nov-99 12,052,439 28-Dec-99 12,101,164
06-Nov-99 12,054,875 29-Dec-99 12,103,600
07-Nov-99 12,057,310 30-Dec-99 12,106,035
08-Nov-99 12,059,746 31-Dec-99 12,108,471
09-Nov-99 12,062,182
10-Nov-99 12,064,617
11-Nov-99 12,067,053
12-Nov-99 12,069,489
13-Nov-99 12,071,924
14-Nov-99 12,074,360
</TABLE>
