Question-and-Answer Session
Operator
(Operator Instructions) We’ll go first to Ed Atorino at Benchmark.
Ed Atorino - Benchmark Co.
I’m never first.
Gracia C. Martore
Congratulations.
Ed Atorino - Benchmark Co.
I’ve got to play the lottery today. I have a question on the interest expense going forward. If I do a quick math on 4% of $4 billion, it’s $166 million, roughly, which is about $40 million a quarter versus the $48 million. What am I missing?
Gracia C. Martore
Well, there’s a couple of factors, Ed. Number one, we have a couple of pieces of debt -- $500 million of notes, fixed rate notes coming due on June 15th that we will refinance and we may in the short-term refinance those in commercial paper but we will also be opportunistically looking at refinancing them in a longer term fashion over the course of the year as the credit markets permit. The other piece is that we have $1 billion of convertible notes that as you’ll recall we did last June. Those are price at LIBOR minus 23 basis points, which has been a fantastic trade for us.
At the time that we issued those, we indicated that we thought that they would be put to us at their one-year anniversary point, which is in mid-July. We are assuming that’s going to happen and so we would refinance those again on the short-term probably in commercial paper, which would be a higher rate than we have right now.
So there are a variety of factors obviously that are going to impact interest expense going forward. As well, it will depend on our activity in the share repurchase market as well as other investment opportunities that we find.
So I think as you look at modeling for the rest of the year, in the second quarter a number slightly lower than what we achieved in the first quarter absent additional share repurchases or other investments is probably in the ballpark.
Ed Atorino - Benchmark Co.
Okay. Thanks a lot.
Operator
We’ll move next to Paul Ginocchio at Deutsche Bank.
Paul Ginocchio - Deutsche Bank
Thanks. I think you said Chris was on the line, so Chris, just a question about quadrantONE -- I guess 10% of the entire registries, online inventory is still relatively small and I think even Yahoo! with their number one U.S. market position is looking to add affiliates. So I’m just wondering how you see your, how you position your sort of much smaller ad network versus all of the other ad networks that are already existing. Thanks.
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