Question-and-Answer Session
Operator
Thank you, Mr. Thomas. (Operator instructions) And we’ll go first this afternoon to Brandon Ferro of KeyBanc Capital Markets.
Brandon Ferro – KeyBanc Capital Markets
Hey guys.
Bob McKnight
Hi, Brandon.
Brandon Ferro – KeyBanc Capital Markets
I kind of wanted to start on the liquidity and debt issues. Can you just clarify for me – I think in you press release and then the prepared commentary we talking about effectively turning all those short-term uncommitted lines into long-term committed ones?
Joe Scirocco
Well, in Europe we are talking about – yes, we are talking about that. So effectively we have some uncommitted lines in Europe and a much smaller amount in the Asia-Pacific region, but the answer is yes.
Brandon Ferro – KeyBanc Capital Markets
Okay. So the vast majority of that 165 will be committed long-term credit.
Joe Scirocco
Well, we expect to negotiate a term sheet in January.
Brandon Ferro – KeyBanc Capital Markets
Okay. And then just the supplemental term loan in the U.S., can you give us a sense of why that’s needed, how big it might be? I am just wondering if you are thinking existing liquidity is adequate. What is kind of driving the need for that supplemental addition there?
Joe Scirocco
It’s just the supplement that is intended to give us a little more flexibility in this final year of our ABL facility. The ABL matures in April of 2010 and so as we bridge from here to there we believe it would be very useful to do that. I really don’t want to go into the terms at this point since we are in discussion without it, but essentially it would be a secure junior terms kind of thing. It would operate within the context of our existing asset-backed credit facility here in the U.S. and it would be subject to approval by our lenders. So we’ll do this in consent with them.
Brandon Ferro – KeyBanc Capital Markets
Okay and then just lastly I think – we think you guys have done a good job in terms of putting things together with the bank group. It looks like they are amenable to getting you through your current near term situation. But you also talked about other financing needs in the press release. So I am guessing you are alluding to private equity there. I am wondering what’s in the capital structure might we take care of with private equity above and beyond what you’ve done with the banks here.
- To read the full transcript on Seeking Alpha, click here »
