As previously announced, on April 18, 2007 the Company completed the redemption of the remaining $90 million principal amount of its outstanding 11-1/4% Senior Notes through a new Term Loan financing, which the Company expects will result in a decrease in annualized pre-tax interest expense of approximately $3.6 million, and an annualized benefit to earnings per share of approximately $0.35 per share. This decrease in annualized interest expense from the new Term Loan financing began to be recognized in the Company's third quarter.
The redemption of the Senior Notes, which was at a price of 105.625% of principal amount, plus accrued interest, resulted in a "Loss on extinguishment of debt" of $7.3 million on a pre-tax basis, consisting of the $5.1 million cash redemption premium and $2.2 million of non-cash expense from the write-off of unamortized deferred financing costs and debt issuance costs. This debt redemption charge, which was $0.73 per share on an after-tax basis, was recognized in the Company's third quarter.