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Can someone explain to me what the debt tax shield is in the situation below:

Say a company

would like to repurchase part of their shares. The company has a cash balance of 209 million dollars. To repurchase all outstanding shares, they borrow 50 million dollars. Assume that before the company was completely debt free, and therefore had a negative net debt position of 209 million dollars. The tax rate is 30,8%. Is the debt tax shield calculated by multiplying the 50 million in new debt by the 30.8% tax rate, or is it calculated by taking the change in net debt, which is 259 million (after the repurchase has taken place), and multiplying this with the tax rate of 30.8%?

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