However, Goldman Sachs, who had been working with Disney on this matter, proposed a rather unusual solution. Goldman suggested that Disney issue ten-year ECU Eurobonds that would be swapped into a yen liability at a potentially more attractive all-in yen cost than a yen term loan. Specifically, Goldman was prepared to underwrite ECU80 million ten-year Eurobonds at 100.25% of par, with a coupon of 9 1/8%, and underwriting fees of 2%. Additional expenses to be paid by Disney were capped at $75,000. The ECU Eurobonds would have an annual sinking fund payment of ECU16 million beginning in the sixth year and continuing until maturity. (The cash flows for the ECU Eurobond are shown in Exhibit 6.) If the ECU Eurobonds were launched, Disney would be only the second U.S. corporation to access this market. Also, it would be the first ECU bond incorporating an amortization schedule to repay the bonds principal. Thus, Mr. Anderson was concerned about the market reception of such an issue Exhibit 6 Cash Flows of 10-Year ECU Eurobond with Sinking Fund (millions) Par: ECU 80 million Price: 100.250% Coupon: 9.125% Fees: 2.000% Expenses: $75,000 Dollar/ECU: 0.7420 Year Cash Flows (million ECU) 0 78.499 1 (7.300) 2 (7.300) 3 (7.300) 4 (7.300) 5 (7.300) 6 (23.300) 7 (21.840) 8 (20.380) 9 (18.920) 10 (17.460)