This paragraph in there conference call is important,
Now let's discuss liquidity, at the end of the second quarter we had approximately $1.4 billion of liquidity. We had $2.2 billion in borrowings outstanding under our $3.7 billion revolving credit facility and $59 million of outstanding letters of credit. Total debt net of cash was $6.9 billion. As I said earlier we expect our leverage to substantially improve upon completion of the asset sale. We are still working through our specific plans regarding our go forward capital structure but at a minimum we do expect to refinance our revolving credit facility to both extend the maturity and to right size the facility given our smaller store base.
Second important para
Q : 'Okay, is there any way you can give us an idea, I mean it seems like 70% plus your stores will be in updated formats. Can you give us an idea of maybe one, what you think kind of pro forma CAPEX may be and two, where you are going to allocate dollars going forward, will it be more towards file buys and trying to grow other businesses besides the pharmacy business?'
Answer: Darren W. Karst
Yeah, I think we're probably looking at -- for the remaining company CAPEX somewhere in the neighborhood of $250 million on a go forward basis. In terms of how that's allocated I think it will continue to be allocated to the stores. You're correct, 70% is -- we are in pretty good shape. We will still continue to remodel stores and add stores and we will also continue to buy script files.
Bryan Hunt
Great, and two more quick ones. If I look to your pro forma EBITDA and kind of flush out what interest expense and CAPEX, and I imagine you have no tax liability going forward. It looks like you'll generate $300 million of free cash flow in round figures, 250 million to 300 million. Kind of what do you foresee putting that to use, is it acquisitions of additional businesses or are you solely focused on delevering the balance sheet?
John T. Standley
I’ll tell you what, is that a great thing to be asking. I mean there is a conversation that we haven’t had for a very long time.
Bryan Hunt
It's been a while.
John T. Standley
That is what is so exciting about where we are as all these kinds of doors start to open for us. And the honest answer is we got a lot of work to do here to figure some of those things out. But there's just a lot of different things, opportunities that we're now looking at that we just really couldn't even consider before. So we're just really excited to get this transaction done, get ourselves repositioned here in the market, get a chance to refocus on the things we've talked about and generate that free cash flow so we can pursue some exciting opportunities. But then again there's opportunities to put some money back into the business, there's some things to look at.
For Envision there's just a lot of different directions we could go here. But the primary focus right now is getting the core business some momentum back in that business, getting some of these things that got a little bit stagnant while we were suffering through the review process back on track like remodels and script file buys, private labels and other opportunities I think slowed down a little bit while we were winding our way through this thing that we're really working to kind of get jump started. And I think for Envision, getting the noise of this whole thing behind us I think would really help them as they come up to an excellent cycle here. I think just the overhang of this transaction will -- of this well and so getting that noise cleared away really I think opens up things for them as well.
So we're all pretty energized here with what we've got and we're excited to get to that free cash flow number whatever it is. We don’t want to give guidance but we're pretty excited about what we've got here.
AI
