Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Nishu Sood - Deutsche Bank Securities.
Nishu Sood - Deutsche Bank Securities
First I want to get some details on the drawing down on the line of credit. I just wanted to hear a little bit more about the rationale, specifically were there any concerns that you had about the banks that were involved in providing the line or have there been any concerns on the part of your suppliers about your own liquidity position that led you to draw down?
Charles L. Horn
It certainly wasn’t the latter issue. It was a case where our lead bank is Wachovia. Obviously everyone knows the events towards the end of September regarding Wachovia. Again with them being an agent we wanted to make sure that we borrowed, had the liquidity there in case there was a hiccup with Wachovia. Had they just been a participant we wouldn’t have been overly concerned but as agents with our money flowing through them, we thought it was beneficial to go ahead and draw the money and have it on hand.
It certainly wasn’t a case where we needed it. It certainly wasn’t a case to beef up our balance sheet in terms of our suppliers. It was purely precautionary. I think once we see the merger go through with Wells Fargo you’ll see us pay it back and get rid of the negative interest arbitrage.
Nishu Sood - Deutsche Bank Securities
What might the interest impact be in the next couple quarters?
Charles L. Horn
I think the effective rate is about 5.5% on this drawing so it’d be $60 million if we kept it for the full quarter at 5.5%.
Nishu Sood - Deutsche Bank Securities
Last quarter you’d mentioned that you might get $7 million to $10 million back in tax refunds. I was just wondering if you could give us an update on the status of that and what you might get this half and what you might be looking at next year.
Charles L. Horn
For this year we received $7 million in the third quarter. We have an additional $1 million to be received in the fourth quarter of this year. So for 2008 we’re only looking at an additional $1 million of refunds. For 2009 our best estimate right now is around $35 million of refunds which we’ll endeavor to get back in May or June of 2009.
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