Tom Raterman: Yeah. Thanks, Bryce. I think in general, our first preference is always to return capital to shareholders via distributions, and that means using our leverage capacity to grow the portfolio. That said, there are times where we’re trading at such a discount to NAV that the investment opportunity is compelling and making an investment in ourselves is a good use of our leverage capacity. So looking forward, the Board and our team thought that as we look forward for the next year, that we wanted to have the ability to set some parameters and be opportunistic to use our leverage capacity to enhance return on equity by use of the share repurchase.
Bryce Rowe: Okay. That’s helpful, Tom. And if maybe you could kind of touch on the dividend declaration here and the supplemental that we’re going to see in the fourth quarter. Obviously, you’ve paid one throughout 2023. Any thoughts on kind of how you plan to think about ’24 in terms of a supplemental or was it more of a ’23 event? Thanks.
Tom Raterman: I think as we get into 2024, we’ll certainly take a look at the interest rate environment and the yield on the portfolio. We would like to be able to continue some form of supplemental dividend. It would be our thought to keep the base dividend as is and continue to distribute incremental income through that supplemental dividend. So it’s our objective to grow to a point where we can return more than the base. And if the portfolio grows, we would expect to be able to do that.
Bryce Rowe: Great. Appreciate the time. Thanks.
Operator: Our next question comes from the line of Erik Zwick with Hovde Group. Your line is open.
Erik Zwick: Good afternoon, guys. I wanted to start with, I guess, kind of another question on leverage but coming at it from a different perspective. You mentioned you’re starting to see increasing opportunities for investment and the environment remains very lender-friendly and also noted, well, the probability of a soft landing has increased and there’s still some uncertainty out there in the market. So just curious how you think about leverage today. Is this an opportunity? Given the lender-friendly environment that you would consider taking leverage up to capitalize on that opportunity? Or does some of the caution in the economic outlook maybe give you some pause in terms of maybe keeping leverage where it is today? I’m curious how you kind of frame the current environment?
Tom Raterman: Yes. Thanks. Erik, we’re very comfortable with our leverage range of 0.8 to 1.1. In fact, we said that we would expand beyond that range, up to 1.25. And as we see high-quality opportunities in a more certain economic environment, we’ll cross that 1.1 to the 1.25. I think as it stands right now, 0.8 to 1.1 is good. But if the lender-friendly environment continues to develop, and if the portfolio remains performing as it is, very high quality, and we see some more certainty and understanding around what’s happening in the macroeconomic environment, we’ll think about expanding beyond that. But it is our objective to use leverage to grow the portfolio.
Erik Zwick: That’s helpful. Thank you. And curious if you could maybe provide some color to the lender-friendly environment you keep referring to in terms of maybe the types of leverage covenant spreads and things that you’re seeing today and how that’s changed over the past six to 12 months.
Greg Greifeld: Yeah. So I think the short answer, which is the best answer, is all of the above. We’re seeing companies looking for much more reasonable attachment points in terms of quantum, and the implied LTV covenants are definitely something that we’re having ability to not only have tighter covenants but have more covenants. And then I think just an interesting anecdote is this has now happened twice this quarter where there’s companies that have had access to delayed draw portions of the debt who have looked at the use of proceeds relative to the incremental cost of this debt which, for perspective, it was underwritten with a 1% SOFR floor, which now SOFR is north of 5%, substantially higher, and just can’t justify that additional expense and have actually asked us if we can extend out that delayed draw period.
These are things that we will evaluate on a case-by-case basis. But I think a key takeaway here is we like to say that we’re investing in the best companies. And I think that this is a key proof that we’re lending to businesses that are very prudent in their own use and allocation of capital.
Operator: [Operator Instructions] Our next question comes from the line of Vilas Abraham with UBS. Your line is open.
Vilas Abraham: Hi, everyone. Most of my questions have been asked and answered, but just maybe one or two here. So just in your comments here, it sounds like next year, we should be a bit more new portfolio investment from Runway versus the last couple of quarters where it was much more weighted towards follow-on investments. Is that a fair characterization of how we should think about it?
