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Action Wants To Sell $2M In "Junk" Debt
Action Staffing, the employee-leasing company, is trying to raise $2 million by selling what amounts to high-yield, unsecured loans to the investing public.
The loans -- termed "subordinated debentures" by the company -- carry a yearly interest rate of 12%.
In a filing with the Securities and Exchange Commission, the Tampa-based company said it does not intend to set up a so-called "sinking fund" to accumulate money to repay the debt when it comes due in 1998.
Companies typically establish sinking funds once they issue large amounts of debt, setting aside a certain amount of money each year to help cover the borrowings.
Nor, the company said, will the loans be secured by any corporate assets. …