RE: Credit line termsI've finished going over it in detail too now. I think you are reading correctly. I am not 100% sure if they have 50 million drawn on the revolving facility or not.
Double, I think you are correct about the breakdown of the 500 million (i.e. $108 M in commercial paper was paid down). If there is 50 million drawn against the revolving line, then it would seem they've paid 448 million. Perhaps they were in process of paying down the remaining $50M on the revolving line and planned to have that done by end of quarter -- that would then bring the total to 500 million.
So, I guess in net, where I had assumed $136 M on left on the non-revolving line and $108 on the commercial paper, it seems that instead it's $250 M on the non-revolving line and the should be no commercial paper left. That's actually a bit better since the commercial paper would have a more immediate maturity. Shuffling it into the NR line gives them more flexibility as to when they pay it off.
So, between now and Feb 2013, they have 250 million to pay off. Five mandatory payments of 25 million are needed the start of each quarter.
They should have about 100 M in cash at this point (excluding any new earnings) and have 250 million to draw on if needed for normal business expenses. Q3 will tell us how much they'll add (or remove) from the coffers. Aside from goodwill write down, they need to have a good quarter. Projections of 18 cents a share would add another 90 million to the coffers. They need to keep having profitable quarters but it does seem like there is a viable path to repayment.
It seems more likely than ever that they will convert series 1 and 2 prefs to commons but earnings are going to be a big factor. Some of the 2013 notes could be tricky to pay off if earnings are slow. However, as someone mentioned, those can probably be renegotiated with holders much more easily than bank debt.
A big question is what kind of credit facility they're going to have post 2013. I guess for that, they'll need to get back in the bank's good books or they'll be stuck with high rates.