Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of [Anthony Sorrentino of Sorrentino Metals]. Please proceed.
Anthony Sorrentino - Sorrentino Metals
Hello, everyone.
Phil Baker
Hi, Anthony.
Anthony Sorrentino - Sorrentino Metals
What are the payment obligations of the credit facility as currently structured?
Phil Baker
We have amortization scheduled under the term facility at $18 million at the end of the fourth quarter and then roughly $40 million for each of the next two years with $11 million for first quarter of 2011.
Also we have a bridge payment that is due in the first quarter of next year. So, when we think about a long lived asset, that’s one of the things we’re going have to end up doing; extending the terming the facility.
Anthony Sorrentino - Sorrentino Metals
Right, would you consider the sale of assets to reduce that?
Phil Baker
We’re willing to consider all options Anthony and nothing is off the table.
Anthony Sorrentino - Sorrentino Metals
Alright, what is capital spending been cut to for the fourth quarter and all of 2008?
Phil Bake
Capital spending in the fourth quarter is roughly about $18 million. We might see a bit of savings from that. So, it's down from the third quarter, but we're in the midst of finishing some programs, and it didn’t make sense not to complete them. The total for the year will be about $73 million. For next year I would anticipate somewhere around half of that.
Anthony Sorrentino - Sorrentino Metals
Okay. One final question. If metals prices remain where they are today, would you be required to take an impairment charge against any of your assets?
Phil Baker
I'll let Jim answer that question and we certainly just filed our 10-Q and we've done that analysis and we did not have an impairment, but I'll let him talk about the future.
Jim Sabala
Sure. I'll talk a little bit about the process of impairment. As I think everyone is aware, impairment is measured based on a long-term forecast. So, you literally have to take your business plan, put it out 10 to 15 years and your biggest risk factor when you do that is what the metals price is. So, usually the methodology is a Safe Harbor that the SEC has adopted, of three-year trailing prices plus looking at forward curve prices and when we do all of that at this time, we do not see an impairment.
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