Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Irwin Guzman - Citi
Irwin Guzman - Citi
It looks like you have about $300 million capacity left on the credit facility and an option to expand that by another $100 million with development spend coming off have you considered repurchasing some stock at these levels?
Richard Moran
Repurchasing stock I think we’re certainly mindful of the stock price and aware of that. I think our first priority right now as it has been over the last couple of years is making sure we protect our balance sheet and preserve our maximum liquidity. So that’s something we’ve been actively considering but at this point our number one priority is to make sure we protect our balance sheet.
Irwin Guzman - Citi
You mentioned the Sony BMG expiration as we look out into 2009 are there any other large expirations that you’re focusing on now that we should be tracking?
John Kilroy
No actually in LA the Sony building that’s 95,000 square feet that comes back January 1st is the largest in the LA region. Everything else is pretty minimal.
Operator
Your next question comes from the line of David Rodgers - RBC Capital Markets
David Rodgers - RBC Capital Markets
Is the debt that you repaid with your line of credit, what are your thoughts about permanent financing on that?
Richard Moran
I don’t mean to sound relaxed at all, we are fortunate that we have a relatively low debt leverage compared with what debt capacity was available at the peak of the credit cycle so we’ve tried to be very disciplined so we have the flexibility and the luxury of not having to go into the debt markets right now. I think that’s something we’re actively aware of and testing day to day.
I think over time I think you’ll see us back in the debt markets but right now there obviously rather lender favorable if they’re open at all. I think we’ll probably wait a bit just see how things settle out. I don’t mean at all to say that we’re relaxed because in this environment I don’t think anybody can be.
David Rodgers - RBC Capital Markets
Is that your stand too with the April debt maturity? Have you had any talks about how you’re going to satisfy that one?
Richard Moran
I think there’s a lot of time between now and then. As I said, fortunately if you run through any analysis of our debt capacity even in an return to fairly traditional prior generation mortgage lending policies we have plenty of debt capacity to refinance our debt over time even if we’ve done the analysis, even if you assume that debt markets stay [inaudible] for the next five years and we have to refinance all of our debt, even that which matures in 2011, 2012, and 2013 even if you underwrite it at 9% or 10% we still have coverage of one six or one seven on that based on our last 12 months NOI.
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