Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Craig Siegenthaler - Credit Suisse.
Craig Siegenthaler - Credit Suisse
I just wanted to know after the restructuring here, I guess you had about $115 million left. Can you walk us through what debt covenants you have remaining, on the $150?
Chris Wasiak
Yes, we have a net worth covenant that requires us to keep a $150 million.
Craig Siegenthaler - Credit Suisse
Is that of cash and investments or is that just cash?
Chris Wasiak
It is net worth covenant so it is not cash or investments. It is a straight net worth calculation. We have an interest coverage ratio as to most of what we had had before with then at the minimum ratio of 3.0. There is a debt leverage ratio consistent again with what we have had before that has a ratio of 3.0 that in calendar year 2009 that has been dropped down to 2.75. It is just where it has been before and an investment coverage ratio that is the ratio of the investment portfolio plus cash to the total amount of debt which is actually 1.25 and that has minimum ratio of 1.175.
Craig Siegenthaler - Credit Suisse
Got it and when I look at slide 16 where you show your simple assets on your balance sheet, that delta there that really comes from two actions - one is realized losses on the partnership and investment funds which you used to repay the debt and the other is the marks kind of minus the hedge, is that correct?
John P. Calamos, Sr.
Yes, effectively yes it is the liquidation of those securities more than just the unrealized gains too.
Craig Siegenthaler - Credit Suisse
Was the hedge pretty effective in this quarter because I think you put it on in early October? It was in October but it looks like with the underlying mark down by only about $20 million?
Chris Wasiak
The hedge was very effective. We did not get it on unfortunately until the, after the first week of October but has proven very effective since then.
Craig Siegenthaler - Credit Suisse
Got it and when we think about the markets in the first quarter of 2009 with equity market sinking like down to the single digits, it should probably meet almost all those losses, is that right?
Chris Wasiak
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