Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Jeffery Stein - Soleil-Stein Research LLC.
Jeffery Stein - Soleil-Stein Research LLC
You maintained the guidance at $160 million to $180 million but you also adjusted your estimated tax rate, so I’m just curious, I presume you’ve incorporated your new tax planning into your forecast and therefore it almost sounds like you’re saying you expect operating income to be below where you originally thought it might be.
Zev Weiss
Jeff, you are correct. We are taking into account the tax rate into that number.
Jeffery Stein - Soleil-Stein Research LLC
Secondly, and this kind of went right by me. You mentioned something about an investment you’ve now made in Recycled Paper and I’m wondering if you could possibly elaborate on it a little bit just from a high level, why the interest in Recycled Paper? Are they a bankrupt company or just trying to restructure their debt and what got them into this position in the first place?
Zev Weiss
Jeff, I really can’t share anything beyond what we shared in the prepared remarks. Again, for the reason that we shared which is they’re in the middle of seeking to restructure their own balance sheet, we just don’t think it’d be appropriate to get into it any more.
Jeffery Stein - Soleil-Stein Research LLC
So at this point you are a creditor of Recycled Paper having purchased $44 million of their debt?
Zev Weiss
We’ve purchased a majority of their first lien debt and the cash cost of that has been $44 million.
Jeffery Stein - Soleil-Stein Research LLC
Can you tell us at what discount you have purchased that? What is the face value of that debt?
Zev Weiss
Again, for the reason I shared before, I think it’s a good question, it’s the right question to ask. It’s just given where they’re at and what they’re in the middle of trying to accomplish with their own balance sheet, we just don’t think it’s appropriate to comment anymore.
Jeffery Stein - Soleil-Stein Research LLC
Understand. And on the licensing side, in your opinion and I don’t know what the balance sheet of Cookie Jar looks like, but is it possible that that transaction could be in jeopardy?
Zev Weiss
I think it’s very reasonable to assume we’re going to close that transaction this year.
Operator
Our next question comes from [Will Bate - Bate Capital].
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