Banana Tree is a stable firm operating in a matured industry. The firm is currently financed with $1,806 million (market value) of bonds with a yield of 8.5% that mature next day. It has 100 million common shares trading at $16/share, with an estimated equity beta of 1.8. The risk-free rate is 6% and the market risk premium is 8%. Banana Tree's tax rate is 41%.

Banana Tree plans to immediately issue common stock and use the proceeds to pay off $654 million of maturing bonds. The remaining bonds can be refinanced at a yield of 7.44% once the old bonds mature, and the interest payments of new bonds are made at year-end. From then on, the net amount of bonds outstanding will be increased by 4% per year. The yield on any new debt is not expected to change again. Assume there are no transaction costs for issuing or retiring securities, and financial distress costs are negligible. Assume also that the CAPM determines the risk-return relationship for all assets: business projects, stock, bonds, etc.

After a careful analysis, you determine that the interest expense tax shields on Banana Tree's debt will have an effective risk (beta) 30% higher than that of the bonds themselves. You calculate the present value of the debt tax shield after the change of the capital structure to be $___ million.