During December 1998, the Company re p u rchased notes with a face value of DM 26.4 million and 31,173 warrants for a total purc h a s e price of $5.5 million. This re p u rchase was accounted for as an extinguishment of debt with a resulting $2.9 million (net of income taxes of $1.5 million) recognized as an extraord i n a ry gain on such extinguishment. The extinguishment gain (pre-tax) re p resents the diff e re n c e between the allocated carrying value of the debt extinguished ($10.2 million) and the consideration paid ($5.5 million), offset by the write- o ff of the allocated unamortized deferred financing costs ($341,000).  The following table provides the composition of notes payable at December 31: The effective interest rate relating to the aforementioned notes payable was 13.09% for 2000 and 1999. The interest expense was a p p roximately $8.8 million and $9.5 million for the years ended December 31, 2000 and 1999, re s p e c t i v e l y.  In July 2000, the Company entered into subscription agreements for the sale of 877,946 new common shares of the Company. Closing with respect to such sale took place on July 14, 2000 and August 29, 2000. These agreements were signed with accredited investors in transactions exempt from registration pursuant to the exemptions provided in Section 4(2) and Regulation D of the Act. The purchase price of each share was $6.97. The aggregate amount of proceeds to the Company from the private placement was $6.1 million.  In April 2000, the Company entered into two separate subscription agreements for the sale of an aggregate of 354,777 new common share s of the Company. Of the total new shares, closing with respect to 254,777 shares took place on April 10, 2000, and closing with respect to 100,000 shares took place on May 4, 2000. These agreements were signed with certain foreign persons in transactions exempt fro m registration under the United States Securities Act of 1933 (the “Act”) pursuant the exemption provided in Regulation S of the Act. The weighted average purchase price of each share was $7.50. The aggregate amount of proceeds to the Company from the private placement was $2.7 million. Under each of the agreements, for each two shares of common stock purchased in the private placement, the accre d i t e d investors were issued one warrant, expiring in each case on the one year anniversary date of the subscription agreement, to purchase a share of Euronet common stock at a weighted average exercise price of $12.50.  In Febru a ry 2000, the Company entered into two subscription agreements for the sale of an aggregate of 650,000 new common shares of the C o m p a n y. Closing under these agreements took place on March 13, 2000. These agreements were signed with certain accredited investors in transactions exempt from registration pursuant to the exemptions provided in Section 4(2) and Regulation D of the Act. The purchase price of each share was $6.615, which re p resents 90% of the average closing price for the ten trading days prior to and including Febru a ry 15, 2000. The aggregate amount of proceeds to the Company from the private placement was $4.3 million. Under each of the agreements, for each two shares of common stock purchased in the private placement, the purchasers were issued one warrant to purchase a share of Euro n e t common stock at an exercise price of $11.615, expiring in each case on the one year anniversary date of the subscription agreement.  On June 28, 2000 the Company entered into an unsecured revolving credit agreement (the “Credit Agreement”) providing a facility of up to $4.0 million from three shareholders as follows: DST Systems in the amount of $2.4 million; Hungarian-American Enterprise Fund in the amount of $1.0 million; and Michael J. Brown in the amount of $600,000. The facility was available to be drawn upon until December 28, 2000, and repayment of any draws was due June 28, 2001. On December 28, 2000 the facility was amended and renewed for a further six months and is available to be drawn until June 28, 2001 with repayment of any draws being due December 28, 2001. Draws on the facility will accrue interest at 10 percent per annum, payable quart e r l y. A “commitment” fee was paid for the initial facility of 100,000 warr a n t s issued pro-rata to the lenders with a warrant strike price set at the average share price, as quoted on NASDAQ for 10 trading days prior to the warrant issue date, less 10 percent. An additional fee of 100,000 warrants, on the same terms, was paid for the subsequent extension of the facility. Wa rrants are to be issued on similar terms and conditions for each draw on the facility at the rate of 80,000 warrants for each $1.0 million of funds drawn. As of March 1, 2001, the Company had not made any draws under the Credit Agreement.  On May 26, 1999, the Company entered into foreign currency call options with Merrill Lynch to purchase Euro 79.3 million for $85.9 million and foreign currency put options to sell $83.6 million for Euro 79.3 million on May 26, 2000 (the “Settlement Date”). Under such contracts, the Company would be re q u i red to make a cash payment to Merrill Lynch on May 31, 2000, should the Euro weaken against the US Dollar and fall below $1.055 (the “Floor Rate”) on the Settlement Date. At the same time, should the Euro strengthen against the U.S. dollar and rise above $1.0835 to the Euro (the “Ceiling Rate”) the Company would receive a cash payment from Merrill Lynch depending upon the Euro/Dollar exchange rate on such Settlement Date.  3 5 (14) Forward Foreign Exchange Contracts  (13) Credit Facility  (12) Private Placement of Common Shares  2 0 0 0 1 9 9 9 (in thousands) Principal amount $ 9 3 , 8 1 9. $ 1 0 0 , 1 1 3. U n a m o rtized discount ( 1 6 , 6 2 8 ) ( 2 7 , 3 1 3 ) C a rrying balance $ 7 7 , 1 9 1. $ 7 2 , 8 00.