| 7. |
This excerpt taken from the AKS 10-Q filed May 5, 2008.
During 2007, the Company redeemed the entire $450.0 of outstanding 7-7/8% senior notes due in 2009, of which $225.0 was redeemed in the first quarter of 2007. In connection with this early redemption, the Company incurred a non-cash, pre-tax charge of approximately $1.3 in the first quarter of 2007 for the write-off of unamortized debt expense. The redemption was funded from the Company’s existing cash balances.
During 2007, the Company entered into an $850.0 five-year revolving credit facility with a syndicate of lenders. The facility is secured by the Company’s inventory and accounts receivable and replaced two previous credit facilities totaling $700.0 which were secured separately by inventory and accounts receivable. The new facility provides the Company with enhanced liquidity, lower costs and greater flexibility for borrowings and will be used for general corporate purposes. The Company incurred a non-cash pre-tax charge of approximately $2.8 in the first quarter of 2007 related to the replacement of the previous revolving credit facilities.