Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Dustin Pizzo with UBS. Please proceed.
Dustin Pizzo - UBS
Hey. Thank you. Good morning everyone. Ross Nussbaum is on with me for help.
Debra Cafaro
Good morning.
Dustin Pizzo - UBS
Good morning. Debbie, couple of questions. First, strategically while you don't have any immediate liquidity needs, can you just elaborate a bit on Richard's comments that you look to potentially to take advantage of the attractive price gain versus issuing unsecured paper. Given the strides that you continue to make maybe you are just dealing with the fact that when you look at notes today in the five to seven year range it looks like they're trading in the 7% to 8% range.
Debra Cafaro
Yes, there's a couple of things I'd like to say in response Dustin. One year is our bonds are trading very well. The spreads on our bonds are maybe around 450 over. So our paper continues to issue and trade extremely well. And so we do have a good access to the unsecured debt market. As we have been moving up the credit curve we have been really conscious of maintaining a balanced capital structure, going more unsecured and less secured debt. We do think agency financing however is very attractive as it is pricing in the 6 to 7% range. And so, we had initially looked during the year to raise about $200 million of secured agency debt. And I think our comments today are consistent with that. And I think the last point I want to make is what we're really doing is replacing mortgage debt with mortgage debt because we do have in 2010 most of our maturities which is maybe 175 million or so is all mortgage debt. And so we will be keeping our secured debt ratios in balance. And we will be lowering our overall cost of debt, which is an important objective for the company as well.
Dustin Pizzo - UBS
Okay. And then it looks you've recorded about 5.5 million of merger-related costs. And well I think I already know what the answer is going to be, can you provide any more detail on what exactly those costs are related to?
Debra Cafaro
It's substantially all the costs of the ACP litigation and that's what's on that line.
Dustin Pizzo - UBS
Okay. So it's more legal related than deal related, it sounds like?
- To read the full transcript on Seeking Alpha, click here »
