Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Michael Bilerman – Citigroup.
David Doty – Citigroup
It's David Doty with Michael. Just to start, can you talk a little bit about your thoughts around liquidity versus your appetite for debt repurchasing, your acquisition appetite, how you're balancing those different strategic objectives?
David Gardner
I think I kind of mentioned as far as future acquisitions we do have the one in the pipeline that is scheduled to close, and I'm sure it will close. I think we were very pleased with the financial results that we expect there, a 6.7% yield. And the one we just closed, and this one we're closing later, is from the same seller. We're looking at about an 8.5% un-levered IRR, so we're very comfortable with that kind of level.
They all come with a decent amount of debt assumption, so the equity cash needs are somewhat minimal. As I said there's nothing additional in the pipeline and I think we would, again, kind of hold to those higher underwriting standards. So in the near term it certainly could limit the availability of getting something that will meet that criteria.
Edward Pettinella
I just wanted to let you know we moved up our underwriting criteria from 7.5% to 8.5%, so that's the key and I think that's one of the key reasons why I said we probably will not see too many more deals. These two, I would say, are probably more aberrations. That would be my guess unless we're pleasantly surprised, but the hurdle has been raised on our model.
David Gardner
I think to your second part of the question on the convertible debt repurchase, we have a continued appetite. It's difficult to suggest a level. It could be anywhere from an additional $20 million to maybe $40 million, and we're talking about getting somewhere in the neighborhood of a 75% discount, so we'd need 75% of that $20 million to $40 million. We think we can even do a little better than the 77% that we just did on the first $18 million, so we're going to be prudent though.
I mean we think with a discount like that, you're looking at an IRR of 13% to 15% kind of area, so we do think it's a very logical use of our funds today. There is a $200 million bullet maturity in 2011. If we take off $50 million or $60 million of that around now, it doesn't do anything to our debt levels. It will leave them equal, but we'll certainly – if I can get it at 25% to 23% discount today, we think that's a wise thing to do with three years left on those deals.
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