Question-and-Answer Session
Operator
Thank you, sir. (Operator instructions). We'll go ahead to our first question which will come from Doug Lane with Jefferies.
Doug Lane – Jefferies
Yes, hi, Bill, hi, Chris.
Chris Biedermann
Hi, Doug.
Doug Lane – Jefferies
On the new deal with Lion Capital, even though it's spread out over five years, it's still a pretty big transaction and it sounds like there is some sort of payment due in 2009 and it doesn't appear that the credit crunch is getting any better. Can you give us some order of magnitude and how you anticipate financing that, maybe in conjunction with that, Chris, you can give us what your estimate for free cash flow this year?
Chris Biedermann
Yes, I think, Doug, that we are probably looking at around probably around $80 million for 2009, with the bulk of it to be paid in the last half of 2009, which would certainly leave our options open to certainly on how we finance it from cash, debt, or equity, but certainly the bulk of it to be paid in the last half of '09, is the current arrangement with Lion.
Doug Lane – Jefferies
Okay.
William Carey
There are some options by structuring it that way.
Doug Lane – Jefferies
Okay. And Chris, you talked about –
Chris Biedermann
In terms of free cash flow, we said that, we usually target about 50% of our EBITDA to come out of cash flow from operations. We are probably looking at about the $100 million range, and on top of that CapEx, operating CapEx will be around $15 million to $17 million range as we finalize the facilities in Russia.
Doug Lane – Jefferies
Okay. That's helpful. And do you think working capital will be a source of cash or a use of cash this year?
Chris Biedermann
I believe it should be a source of cash for the year, some of the items mentioned before in terms of Russia cycle.
Doug Lane – Jefferies
Okay. Can you talk a little bit, in Russia, Bill, on the LVMH portfolio, obviously it's a (inaudible) portfolio and I imagine that is a little (inaudible).
William Carey
I am sorry, Doug?
Doug Lane – Jefferies
I am sorry, I was asking about the LVMH portfolio, how that's holding up, given its very, very premium price?
William Carey
Yes, I mean, we certainly anticipate, like I said, a slowdown from the 23% of volume gains we had last year. When we look at the first couple months, we just closed February. To be honest, it was pretty decent. It was up I think a couple percent, up over last year. And this is pretty much what we're anticipating is single-digit growth for volume, and probably another 10% on value on top of that for the Whitehall business, and then maybe some of these new products coming in, as I mentioned, maybe to enhance that a little bit, but this is that market leading positions, and then the bulk of the Hennessey, for example, is in your VS and VSOP, is not coming from your XO and Hennessey parodies, and very, very high end stuff, so your basic cognac and champagnes still will be bought, Doug.
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