As of December 31, 2007, the Company operates 478 leased departments within Sears stores and, as we disclosed in September 2007, our relationship with Sears will end on June 20, 2008, resulting in the closure of our leased departments within Sears stores.
Adjusted EBITDA was $6.5 million for the first quarter of fiscal 2008, a significant decrease from the $12.0 million of Adjusted EBITDA for the first quarter of fiscal 2007. Adjusted EBITDA is defined in the financial tables at the end of this press release.
During December 2006, the Company redeemed $25 million principal amount of its then outstanding 11-1/4% Senior Notes at a price of 105.625% of principal amount, plus accrued interest, resulted in a "Loss on extinguishment of debt" of $2.1 million on a pre-tax basis, or $0.21 per share on an after-tax basis.
In April 2007, the Company completed the redemption of the remaining $90 million principal amount of its Senior Notes through a new Term Loan financing, which the Company estimates is resulting in a decrease in annualized pre-tax interest expense of approximately $3.6 million, and an annualized benefit to earnings per share of approximately $0.36 per share. This decrease in annualized interest expense from the new Term Loan financing began to be recognized in the Company's fiscal 2007 third quarter.