EX-99.1 9 d33728exv99w1.htm CALCULATION OF THE MAXIMUM NOTES BALANCE exv99w1
 

EXHIBIT 99.1
CALCULATION OF THE MAXIMUM NOTES BALANCE AT DECEMBER 31, 2005
UNDER THE SENIOR SECURED NOTES FACILITY DATED JANUARY 13, 2005
(dollars in thousands)
                 
I. Lesser of:
                
 
                
A. the product of:
                
 
                
1. the Free Cash Flow Multiple
     8.0x          
Multiplied by
                
2. Services Business Free Cash Flow
   $ 7,980          
 
              
 
   $ 63,840          
 
                
Or
                
 
                
B. the product of:
                
 
                
x. 2.0 times
     2.0x          
multiplied by
                
y. Services Business Revenue
   $ 21,583          
 
              
 
   $ 43,166          
 
                
 
           $ 43,166  
II. Lesser of
                
 
                
1. 50% of the results of the immediately preceding clause (I)
   $ 21,583          
 
                
2. 30% of the Company’s After-tax PV10
   $ 13,055          
 
                
 
           $ 13,055  
 
                
III. 10% of the Company’s After-tax PV10
           $ 4,352  
 
              
 
                
Maximum Notes Balance = (I) + (II) + (III)
           $ 60,573  
 
              
 
                
Aggregate Notes Outstanding at Determination Date
           $ 45,000  
 
              
 
                
Company’s After-tax PV10 as of December 31, 2005
           $ 43,517  
 
                
Services Business Revenue {Section 2(a)(xxxx)}
           $ 21,583  
 
                
Services Business Free Cash Flow {Section 2(a)(xxxix)}
                
Services Business operating income
   $ 6,712          
Services Business depreciation and amortization expense
     1,268          
Less: Any net operating income from affiliates
     —          
 
              
(A) Services Business net operating income before interest, taxes, depreciation and amortization
           $ 7,980  
 
                
(B) Aggregate interest paid on permitted indebtedness
             25  
 
                
Services Business capital expenditures
   $ 4,235          
Less: Service Business equipment sales procces
     (31 )        
Less: Issuances of stock by Infinity, less costs
     (4,707 )        
 
              
 
     —          
Less: Aggregate interest expense
     (25 )        
 
              
Services Business capital expenditures, not funded
     (25 )     (25 )
 
              
 
                
 
           $ 7,980