In July 2002 McCombs entered into a variable prepaid forwardcontract with JP Morgan with 12 different tranches to be settled (with stock or cash) in 2003, 2004 and 2005. (The bank dubbed the structure Principal Installment Stock Monetization or PrISM.) In August 2002 McCombs also agreed to lend 11.3 million shares of Clear Channel to JPMorgan Chase.
"I realized that sitting in Lagos was a problem: You contract to buy two weeks forward, and the guy brings the cashews 600 miles from the farm gate, " says Verghese.
