NATIONSBANK: TO TIE OR NOT TO TIE
We are quoted in the BUSINESS WEEK article "NationsBank: An excess of zeal?" (Finance, Nov. 28), and we are disappointed. Many of the quotations are inaccurate and out of context. Additionally, comments that would significantly change the tone of the article were omitted.
Contrary to what the article attributes to us, we do not believe there was any tying or coercion on the part of NationsBank in connection with our industrial revenue bond issue or our discussions. In fact, we explicitly stated there was no tying: "No one at NationsBank ever stated that issuance of their letter of credit was contingent upon them acting as bond agent--we know there is no tying."
What appeared in print is not what we intended to say or actually believe.
Tyler N. Crafton
Lynn F. Howard
Vice-President for Finance
Consolidated Engineering Co.
Editor's note: Our reporter's notes, based on two interviews, are clear on this point. They do not show Crafton and Howard denying that the incident was tying and do show them saying that they were heavily pressured by NationsBank. Based on that, and other information, we stand by our story.