Question-and-Answer Session
Unidentified Audience Member
[Inaudible Question]
David Bronson
That’s a great question. On the face of that, it would look like we’re.. the question was: is there any inherent conflict with our band of manufacturers by us having our own private label brand? I would say that the filter that we used, to come up with the products that we’re going to target eliminates a good chunk of that potential conflict because we’re talking about products that don’t have brand recognition, that don’t have good support, that have not been innovated. Think about a tongue blade or cotton ball. Most of those manufacturers were already manufacturing the product overseas somewhere, and had their label on it. All we’re doing is replacing them. I will tell you that for manufacturers that do innovate, that do support the products with field support, support our marketing efforts to have strong brand recondition, we’re not touching those. We’re continuing to honor those relationships because now we can focus more on them and not have to worry about some of those other products and the other manufacturers so I think it's probably not intuitive but it actually has improved our relationship and by the way, we are still growing much faster than any of our competitors with their products. Good question. Any others?
Alright, we are just finishing up our Q2 of our fiscal year '09, we will be recording results in about the third week of October.
Unidentified Audience Member
[Inaudible Question]
David Bronson
Yes... the question was, on our convertible debt structure. We have $150 million of 2004 bonds and we will be redeeming those on March 15th, at Park and so the 230, the uses of that, about $30 million was share repurchase, $150 million of existing bonds and there was some costs that the calls spread over where we had to buy and sell some options and the rest will be used for general purposes.
Unidentified Audience Member
[Inaudible Question]
David Bronson
The 230. The turns of the 230, 3 in the Nape. They are 6 year bonds so it's due in 2014. Convertible at, that's 30% up, $22.10 I think it is. But because of the call-spread overlay, existing shareholders will not see any solution until about $28.
Unidentified Audience Member
[Inaudible Question]
David Bronson
No, they are public traders and I think last time I looked, the new bonds were trading at about 104. They were issued August 12th, within the last month or so. You know, we really struggled about whether this was the right time to go and do this, based on our senses that interest rates would go up, not down; the coupons and premiums would both move away from us in the market place. I-yield was not an option because of the cost, we knew that we had a redemption available out there; we could use our band debt to do that but it would not leave us a lot of capital to take advantage of opportunities in the market place, so we thought that this was a real good time to get this done and overall we are pretty happy with the execution.
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