Ryan Lynch: Good morning, and welcome, Jon, to Blackstone. The first question I had, kind of following up on the whole interest coverage discussion. Really appreciate the details you guys gave in your prepared remarks as well as some of the details in the slides. I just think it would be helpful, when you think about the portfolio, 8% falling below 1% interest coverage, which just sounds like that’s pretty significantly better than most of your peers. But I would just love to hear, if that does occur, what are some of the remedies that you all can do to ease the stress of those companies? I would assume that the easiest one is trying to get the private equity sponsor to inject more capital into that business. But assuming that does not occur, what are some of the remedies that you can do and proactively make to allow those companies to transition through this kind of period of high interest rates?
Jon Bock: Yes, thanks, Ryan. So, a couple of things, one, half those companies, of the 8%, are companies that have negative EBITDA by design. So, these kind of reoccurring revenue loans, so it’s a small portion of our portfolio, but their capital structures were set up with that in mind. With the rest of the portfolio companies, there’s a couple things. One, when we have these conversations with the sponsors, what they say when we run our models and we show them what we think interest coverage is, their reply is typically, one, they can cut costs in order to improve cash flow and service their debt. Two, they can inject equity, as you suggested. And as I said, interest rates won’t cause a good company to default, so they will support their companies.
Third, you can pick some of your interest rate, which I’m sure you’ll see more of across the industry as this year evolves. And then you have maybe the fourth mechanism is most companies have revolvers they can use as long as it satisfies their covenants to fund any kind of slight misses in cash flow. So, those would be the four primary areas. Again, we’ve had all these conversations with all these companies within our portfolio companies that even get close. And so far, the sponsors seem incredibly supportive given what I said earlier, which is if you’re a good company transitory issues like rates, like inflation does not cause a company to default.
Ryan Lynch: Yes, got it, that makes sense. And then just the other question I had was, and I may be wrong in this, but I thought you guys’ targeted leverage range was around 125. So, you guys have been running, not materially above that, but closer to 130 — in the 130s the last several quarters. Did you guys change where you guys expect a run or is there ever a point where you guys want to reduce that down to 125-ish?
Brad Marshall: So, Ryan, remember in the quarter, we bought back another $47 million of stock, and we invested actually about $175 million. So, those two things alone, which entirely in our control, took leverage above 1.25 times target. And if we remember last call, I said we had about $800 million of pay-downs coming, $200 million, roughly, we saw in the fourth quarter. So, we have another line of sight over the next couple of quarters to additional paydowns. So, that’s informing, kind of our buyback, our investment pace, and we take —
Ryan Lynch: Okay. Just wanted to — I mean that makes sense, you know, kind of moving it around a little bit when there’s good opportunities, and line of sight and share repurchases, I just want to make sure that the long-term can change. That’s all from me. I appreciate your time.
Brad Marshall:
Ryan.:
Operator: And now I would like to hand the call over to Michael for closing remarks.
Michael Needham: Great. Thanks everyone for joining. Our team is available for any follow-up should you have them. Otherwise we will speak to you again next quarter.