Question-and-Answer Session
Operator
(Operator Instructions) And our first question comes from the line of David Loeb from R.W. Baird. Please proceed.
David Loeb - R.W. Baird
Doug, this one's for you. If I understand the nature of the economics of the flooridor transactions, you have essentially used capital that in essence prepays a portion of your interest and then pays you more if the LIBOR stays low. So I think that's really clever. It's basically you've used your balance sheet to make sure that you stay in compliance of your coverage covenants. What I'd like to try to understand is what the total amount you have spent on those, the total amount of capital invested on those which will help us figure out how to value that.
Monty Bennett
Sure. This is Monty, David. I've got Kimo pulling the total amount. Let's see if we've got that right here. Because as you know, we've got a swap and we bought caps and then we bought the flooridors; if we've got that broken out here. So we'll see if we can get it. The primary use of those flooridors while it does have effect in different ways on our covenants for either a credit line on the security capital is to hedge our cash flows. And as was read in the script here, the impact to our cash flow and the offset of our interest expense has been substantial so far this year. So we are still looking at those numbers, see if we can find them for you.
David Loeb - R.W. Baird
I'm not arguing that, Monty. Clearly it's done that. It's been a great hedge of your cash flows. But it's also effectively been able to keep you in compliance by spending money upfront in order to lower the interest expense. Suspending capital rather than expense. Am I reading that correctly in terms of the dynamics of the transaction?
Monty Bennett
Kind of. It's different for each of the two tests and it's measured differently. The calculation of how it affects it is different from the two tests. But maybe that's a conversation better to have offline.
David Loeb - R.W. Baird
It does generate EBITDA that counts for the covenant tests.
Monty Bennett
It does for one of the tests. Here, I think we've got this number.
David Kimichik
All totaled, the flooridors totaled $40 million and that is for a series of flooridors through 2011.
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