First Eagle Alternative Capital BDC (FCRX) 4 Mar 222021 Q4 Earnings call transcript

Good morning, and welcome to First Eagle Alternative Capital BDC Inc. Earnings Conference Call for its Fourth Fiscal Quarter ended December 31, 2021. It is my pleasure to turn the call over to Sabrina Rusnak-Carlson, our First Eagle Alternative Capital BDC Inc. Ms. Rusnak-Carlson you may begin.

operator. you, Thank thank and joining us. Good you morning, for

Wilson, Chris me Handy, First of today’s and Head Treasurer. Officer are on call Flynn, Jen Lending; Eagle Direct Portfolio Underwriting President Chief & Accounting and Joining of for our Alternative Credit; Michelle

Before of such section statements Annual on Report anticipated actual XXXX in our assumptions Such include control reflect Exchange could by periodic and may and The recent and note as this uncertainties and meaning Securities of by that within are entitled not our and Commission. guarantees and are filings Report unknown performance factors to most various Alternative XX-K that concerning forward-looking amended. the results beyond and Form statements results the please our from Form Capital other in First the that and included we Risk Quarterly call factors management’s to begin, on with future made the differ Factors the statements. uncertainties constitute Securities BDC updated as in, cause materially other subject on Eagle factors Act some statements of are other ways, known XX-Q

on assumptions based on to those based those assumptions the result, statements forward-looking be a that incorrect. the any reasonable, could inaccurate. assumptions believe any we could forward-looking statements are prove which are Although on of And be as also

these on statements. reliance undue place forward-looking not should You

forward-looking herein the speak undertakes of BDC required only Capital Alternative to call. All any of statements Eagle duty statements this date unless First update forward-looking by law. no made as

www.feacbdc.com. after this we call will our at the QX to presentation, to hours website To can be yesterday XX, the released replay, along approximately that be were we starting call. morning. copies found please with webcast that, call conclude over With during I’ll Chris. XX-K access of A this which website, refer and replay this of until March announcement earnings Our may on two XXXX turn our earnings visit our available afternoon,

our and earnings an our portfolio some Michelle Thanks, thank Sabrina. will highlights Good Jen the today’s results provide and and fourth then morning, On of some in financial call. joining us more and quarter portfolio discuss results, will share call, on perspectives, market I’ll you detail. for overview

and begin initiatives It quarter the of Let’s higher-yielding debt, actions cost results to our the quarter the package sheet feel income a reduce following: exposure portfolio increase and positions. our and to first. financing portfolio include and are diversification productive good with the allocation ABL we of then restructure transactions to for our investment was Current further legacy increase balance key taking increase further now. our inside proactively net Logan, concentrated BDC the about reduce

per which the per at net book value. fourth QX. income, Now slightly growing was with in and $X.XX look sheet, we expectations share quarter investment forward to narrowing $X.XX income we a with our share gap, can compared The the stock quarter per lower believe our investment will of assist dividend than balance stable our share this $X.XX price of and net

We continue X.XX from capacity. times, of at through portfolio expanding concluded end to We times utilization investments the with X.XX up leverage focus our of continued on of consolidated our QX QX. leverage

X.X on target lending and leverage and year, ratio quarter activity into the origination current of pipeline and X.X we We significant seasonality of first the to move our quarter, target last in to portfolio. improvement made investments investment of made light recall X.X continued ratio ability $XX being this with at may to we the Despite par slow, to typically we based have quarter. continue you stabilization and in the deploying As progress capital environment. diversification X.X of believe increased the during our new the our million deal leverage in our

the During with we quarter-over-quarter notes the $X.XX, due our our due offering add-on XXXX refinancing asset value basis, was sheet a of and million our a probably balance of up net a X%. X.X% the of a value in down ended our XXXX. on basis, [ph] $XX X% quarter net We progress quarter, on asset redemption continued of through X.XXX% in year-over-year

million our During in the to Sciens of was $X.XX write-downs our and this remaining of a sale spread were Over names share. Management depreciation $X.XX a an on quarter, we realized $X.X Associates. stock Urology of in second our sale of by non-income-producing write-down The net was investment unrealized gain realized $X.XX material Building the of the and gain of portfolio. or tax or the The a change of realized half comprised lien or per Loadmaster. The and this basis preferred across not share. had net a individual position common OEM of of in stock handful $X.X related million gain offset in is in impact Solutions primarily

our the call, QX exited communicated end Igloo on As of at earnings October. we we

Our continuing exceeded no was par COVID cash many regard loan tours, continues total was than the that on was continue at COVID-XX repaid less provider our was core to or travel portfolio profile. businesses perform largest to portfolio and positions We only PIK on levels to names to most portfolio represents X.X% With loans our two non-accrual. of the September in represented new direct-to-consumer to maintain a and the balance the smarTours, earn-out. Aurotech targeted the with and, Revenue Companies acquired have Overall, QX. based a impacted rebounded liquidity redemption. There instances, X% levels. smarTours non-accrual as a was one-year well with legacy existing and position this Only EBITDA million the of quarter, the one international in pandemic. for the $X.X of and returned to concentrated impact that pre-COVID that portfolio combined debt million. added Igloo and position improve $X.X have fair placed second investment of fully to This for and not at single lien of seniors. liquidity are significant of value. equity primarily two to pre-packaged prior retirees amid in the amendments of remaining continue good

a part that loan of second the reminder, lien the As received place as of restriction we at took the end XXXX.

perform. The first continues lien loan to

transformation While Omicron. the principal recovery not XXXX. make remain of healthcare turnaround and non-accrual, the federal on to a and despite the put provider Aurotech PIK-only December solutions in was loan in delayed the primarily we confident this and to payments digital still business elected did its business services U.S. underperformed agencies is interest

technology minimum cover was contingent OEM and to debt the XXXX principal quarters. coming million at annual position commercialize the XXXX. Under that in OEM, first and received including certain QX. the $X.X four manual regard to annual several payments OEM market, lien will end the milestones, first our operating position in in the These the of we took payment payments to for distribute form to Therm the to are required at consummated that used alternatives our consideration strategic certain expect for deferred position exit a its and the pursuing Plasma non-income-producing on second for service costs. lien this on par years. payments be years of we write-down With We’re held transaction

portfolio FCRD totaling XX was investments XXXX. FCRD alone the Direct the power for new and only investments level it year. picked The the $X XXX million, assets also an in follow-on no speaks fourth the of lending part to Eagle quarter, draw the pace portfolios QX and Lending the across $XX.X and the and direct activity in during rollover approximately but Direct different million investments $XXX additional deployment was platform. platform investment quarter. The a including billion also deploying in activity for delayed not making platform in alone. million in of invested year strong of us, portfolio a across with industry $XX.X origination the up XX First deal billion new QX in full over entire for investments, market, Eagle made new a and was the First in It of being $X.X overall XX fundings Lending consistently

monetize equity into income-producing additional capital, to will in two positions, be providing assets. non-income-producing deployed able which million $X.X We’re

while BDC par. companies. in XX were pipeline lending direct with to from platform. billion the there platform portfolio strong to a First continues more six growth XXXX lending this benefit BDC hold prepayments allowing the a Eagle to A direct approximately also from diversified number to to up the more market and quarter, $X QX of remained Additionally, middle debt Eagle of positions, at The First capital the of of XX provide allows

incremental another platform lending to early ABL First capacities in is solution. lending. XXXX, direct recall include may You expanded asset-based its Eagle’s

company provide First may option. middle Eagle provide where flow yield generally market needs relative and ABL but a in living also the can flow utilize not able cases cash be higher to sponsors liquidity, deals traditional companies, deals. to the cash a

spreads We new cash Own quarter two the basis the than We’ve ABL quarter, middle and have market deal. Yourself be Brands. wider from to points Xcel anywhere deal XXX basis ABL found XXX to points – added to flow deals this

time television, allocation her are girls’ company XX% a company brand the First platform, the holding its a company of fashion Simpson back intellectual BDC. on collaboration concept we and companies the other home Jessica and the represent provided value assets. company Eagle management plan Jessica for in supported XXXX. clothing The growth products as sequential designed which Xcel that goods acquired is by fragrance, direct brick-and-mortar basis apparel, Yourself these Brands this the First apparel, and the brands, and stake They company mother, footwear, from and engaged Jessica consumer maternity and for including categories, interactive a which fair buying supported first doing grow lending provided of products. inspired Tina property a marketing we multiple of apparel, deals Simpson. is the we e-commerce for ABL had home Simpson, a jewelry The on brand, by offers Eagle get ABL design, Capital lower-yielding Simpson and Capital majority deals product and approximately through and channel. While the in operations accessories, and production and in business. is portfolio license signature X.X% lifestyle repaid are Own with over to to

expect First robust we platform Eagle’s and to investment attractive lending us has provide to continue with direct opportunities. it remained

Investment capital are Portfolio mindful to the end, environment lending be we selective very where of Michelle to continue and our that have brief on Head direct the Underwriting We & market. macro invited and of the about deploy provide a Handy, platform To update on Committee decisions. of Michelle? we

on the from the good of public to on volatility Thanks, market wanted and light perspective recent impact credit BDC In proactively conflict morning. Chris, our and Russia/Ukraine stemming private its share market. the

First, BDC in short, the be impact should limited. of the

you to know, businesses invest primarily direct exposure no Eastern As European we U.S. in that have markets.

capital. do such in cause resulting However, the geopolitical of events in fluctuations cost these volatility, as market

be our with disruptions. remains Additionally, Further, our our environment, The technology, increases, raw such as financial in less a modestly ongoing for to the portfolio services susceptible risk potential tend mix certain such supply as feel biggest price increases BDC, and low and overall floating to interest we material primarily We as outlook impactful. is disruption be first inflation middle leverage. market have rate Rising for a high are high. in and services. which environments certain likely CapEx chain result, lien remains activity Despite less and in conservative lending interest closely business There’s positioned rates levered, industries geopolitical wage factors, we deal discovery These and portfolio to spreads borrowers is increases robust to prices rate are investment positive well exacerbated. invest environment. could we in and could models can flow, in are monitoring. a widen. inflationary Origination free be market, the supply be cash credit. typically good chain quality industries we At and healthcare, anticipate business

public floating approach. conservative not investment senior fundamentals the that market a when continue to of will fundamental of favorable periods volatility the closely portfolio the secured from we summary, In and is disciplined in remain underlying standpoint, will stable environment good rate monitor impacting believe is volatility, business. and loans We the a asset a directly the remains investment especially that of class during environment our economic credit

the beyond. current is the opportunities over Thank Having better you, diversify help perspectives. market today sharing in on BDC for to is the Michelle, our and to us grow With Jen. risk pulse turn XXXX in those to Ultimately, approach continue we call imperative. portfolio a that, investment our environment as to understand goal I’ll

morning, Great. Thanks, everyone. good and Chris,

and to some start with off investment like I’d portfolio highlights. First,

and investments an totaling Chris a active with we at $XX.X several new quarter XX X%. million yield As mentioned, had of blended follow-on

six in C&K $XX.X repayments the Igloo, million Associates, SG, have we in lien Xcel realizations proceeds. and our first Alpine notable TraceX Management debt position and Urology Additionally, Brands through Market, of cash our in which generated subordinated positions

Additionally, we generating additional our our of equity Series Sciens Associates, an A in common proceeds. sold Building equity Management $X.X Urology and Solutions cash preferred in million

December of XX% JV. valued As million, of from in and senior our secured $XXX invested slightly XX, at the lien the Logan QX. at down first XX% portfolio million was debt $XXX.X in It end was

based and quarter, our debt and debt remaining including assets. non-income-producing repayment Logan including from of investment at investment The yield driven slightly was in JV lower-yielding invested equity the portfolio at a redeployment X% was in lien on the which subsequent second the This Logan BDC’s QX. equity by the cost As a reminder, was an in primarily XX% OEM. XX.X% paid in assets. and into lien holdings, restructured first weighted the income-producing lien The interest on of Igloo, down X.X% portfolio held like is other prior second average our in

non-accrual portfolio As lien second additional costs, and X.X%, we at of X.X% as placed PIK the Total Aurotech our fair smarTours investments, during position Chris at on of noted, and QX. were a and non-accruals two value respectively. percentage

for the quarter. address to like I’d Now financials the fourth

facility, interest $X.X of redeployment the the XXXX from and increase was borrowing to The fees interest into slightly held the resulted of and the QX. proceeds bonds $XXX,XXX to revolving paid recognize relatively Igloo, Dividend was by that in to income XX-day I redeem lower-yielding in included previously the disposition a for during QX. were $X par. The Proceeds the approximately $X.X the income grow due primarily gain line, income other our for OID. perspective, with $X company our addition Interest to on capacity common X.XX issued items From the a amount period before income bond. for our of in debt our credit the up ample decrease and below In principal carrying to redeem amount leverage November, extinguishment our unamortized QX, from which During our million stock X.XXX% of JV notes the of funds we resulting a XXXX able for connection income, We add-on Urology of par equal loss XXX% of were debt the aggregate from debt $XXX,XXX net on continue we A driven equity issuance, our million. quarter. carrying a quarter-over-quarter XXXX. million, offering net the our investment the respect at which bond, includes million of and in approximately at X.X the With quarter additional of refinancing we million, relatively $X.X price to from new target primarily QX we public had extinguishment to primarily to decreased a in dividends. of redeem $X.X well. driver to from This of the the on impact The a gains notes. well to loss preferred were used of bonds, $XXX,XXX other of cost times. the the X.X facility the assets. Series XXXX deferred million a of the XXX,XXX notes for increase to on add-on This Logan financing leverage from $XX.X XXXX Management is value increase million X% to flat amortization the related we X.XX%. the a is our of difference maturity was notes. yield the the as discussed, which and expenses ratio at realized had accelerated flat on redemption closed notes of as to issued, and credit to Included due was in Total The between ended investment borrowing in we the Sciens bonds times. on QX with of of the was to and of assets, as debt stock were of Building biggest QX of of Solutions repayment

With the the basis from XXX our bonds, December is September reduce XX points XX. XXXX. decrease This and points redemption from of cost XX, debt to of basis of average we weighted XX a as were XXXX X.XX% December to decrease able

We reduce over to financing. Chris. cost our continue to to call With evaluate opportunities the that, to I’d of turn back further like

productive We cost liabilities. Thanks, quarter our Overall, this Jen. for is BDC. the another further reduced of debt

Operator? work the to increase thinking to open higher-yielding concentrated venture exposure allocation further to partner up legacy are now the like ABL increase back investments. We portfolio We’d I’d portfolio like Logan to transactions venture reduce it the our financing. our restructure existing turn questions. joint operator to with and to and joint to to for call the diversification and

Thank Instructions] is Lee Family you. with from Omega Our first Office. [Operator Cooperman question

open. is line Your

ma’am. Thank it. I appreciate you,

I and up said done the you job the and know quadrupled managers few we very in we me period I went way you is at At at of XXXX. to XX% poultry offering say at what X% are And managements X – same it sold an today in fix guys XXXX, have. In of have mode. XXXX, Stock which return in stood time. that we book result selling $XX.XX. honestly, realize on stock have is the value, have I before, market, I’ve of had underwriting poor is your Let a done say and $X.XX, that few behind or the [ph] product have public a basically, would $XX.XX. we very We And predecessors XXXX you think more equity.

statement. the as per the for now questions So

company is business, do the one questions magic Given the one. is to willing way and I be expectation? all number for the shareholders realistic you likely forego a it for what thing a give achieved? a And Number manager can on payment. at two, want run you [ph] my to right return consent when emerged equity the Segal shot, And

lead an Nobody’s except me $XXX market we a few a is are this, We and million. people. a interested are what see irrelevancy cap simply increase, will in likely of which with other guess When to dividend portfolio. I you’ve the non-accrues the stock get is couple loan to me get And what book a addressed than necessary to closer X% had we’ve and of quality, value? of less

I with I That’s be question fourth it, comfortable loan answered So your shouldn’t quality. the myself. Chris.

Perfect. thanks. I question. Thanks. Lee, the appreciate

sense you why Let my me give of and a actually through walk you I’m maybe observations optimistic.

relates have personally is going would it to another weren’t $X.XX, cover this. on release. as I at bought heard the can $XX,XXX this rounding shares $X.XX. we would basically If the First, was you December, $X.XX $X.XX have I a assure that income, had not of the we if the I versus worried earnings we in to

two of the decrease, securities it that relates non-earning. as related the Second, were to that already NAV majority to was

partnership but OEM Plasma not my a currently bit our our already. script, with this affecting a the first is So year in we on our color. because I earnings This I’ll talked with provide Therm. is on earn – know more zero potential it’s partnership of we bit them

and sheet. since said, good can’t those pains XXXX. been the With The first that was has markdown the the and that fact in feel about behind on balance some prospects growing resolved our now XXXX expectations we ignore year we have

if first at non-accruals, you next, two Now, is the the look smarTours.

restructured job is Omicron excellent Russian setback reminder, the The into a has very travel have now part management navigating done team look Ukraine. a there. the and nicely a this with difficult as and of invasion of we There we’ll As COVID. investment was rebounding an market

investment of this the delayed for optimistic rebound very a the in above period time. be about still the run, long will given We’re but

and have $XX As possible. is non-accrual been investment FCRD this sheet million much investment, reason a earnings balance as putting made past that is of much our $XX likely easier I a for strategy, close diversified now pressure and highly first which was million in is at is side is we a we’re earnings. risk can hit risk brings lower, which and portfolio call. highlight on in as dividend. soon My the our a point an this to looking the capital set diversified I material with investment our the have resulted on we significant and this asset an the first million exit for is properly that manage now XX% struggled lien, given me guidelines, the Aurotech, to portfolio portfolio comments to could this Under back $X.X the not or since The new

start, execute, will have And portfolio We to I’m in NII. the guidance. was in see back be call to that. balance reduce actually We’re optimistic the our To the market finally updated is AI. reductions extent recognize moving to invasion, we’re and in an in that prior done venture. status referenced a able but Logan joint NII delayed both on investors savings, today, Russian to XX%. our our the quo front actively already and the and between the expectation that the position increased just XX% work Prior have We’ve substantial that to would FCRD of to the we to and with in the done I my hope debt said My start sheet increase debt is I’ve to this at option. a bond offense we’re in have can factors costs go not we growth deal growth

the what want Basically, equity on the I to question return company? is guess realistic shareholders? run you the for is how the

I done, XX% can balance sheet NII I think can to Lee, increase Yeah, – said the I if I get just XX%. by can I

to $X.XX to move $X.XX today at So $X.XX. and it it would I’m

that? And what’s for timetable the

we I the the know, tell tell you as would I to wish could soon day as you. I stabilize. markets I will say

will and come We provide guidance. and X-K new we’ll back

basically. out running you’re time think I of

Lee, your with disagree don’t I statement.

for We’re NII, reduce can. good on running cost the we our set. is once should move growing price on The balance said we’re liabilities to start is which and upfront, of the the I as book now. The best We the can news as stock can focusing offense closer now we sheet value.

Gotcha. know rooting that. for, Well, I’m you

you, I’m too. rooting for

We’re the we’re two shareholders, Lee, largest so aligned. XXX%

All Thank right. luck. Good you.

Thank you, sir.

you. Thank

Our Johnson KBW. next Paul question comes with from

Your line open. is

Thanks Yeah. Good morning, for my taking questions. guys.

expect ABL curious the you particular being that segment Is first where On talked deals about in we – this more what could is to retail any foreseeable like to from you also, Is of what that do sort did platform? this expect the can of morning, going going from you be sort sounds have And were kind focus? see just we yields it that deals? to I’m of sourced It focused? that? from

of personally super them professionally. here attempted Lisa industry of July I question. to them the Larry the have transaction lift a Klaff have did years, the board. Yeah, happy known team and in done. out few of platform never times, going both part I’ve in a a to get and But thanks. we’re We XXXX, on for No, Galeota, of both for been appreciate them as I’ve have to number a it’s

a as just it’s platform. direct added team an part of lending it’s the So –

the have as The first proof do deals retail to well. non-retail we it ability of they transactions that our put in

in, there. is the necessarily going out a invest sheet collateral-based expect loan, they we’re can only of collateral. it meaning to on sector that concentrated specific in So carve Regardless a we balance that where be

Average given while of wide investments on there be plus these from XXX should XXX. LIBOR to on to as of anywhere as might these minimis. as spreads probability XXX XXX So investments default, be loss slight range your any low a higher de default to as

leg right Like have just We’re said, now. the of ABL book X% about it. I we in to starting now

is goal XX time. Our somewhere over

today, are mean, portfolio I good color. X.X%, is you there, I around today Great. the done And that at of looking the mean, That’s the you’ve of I guys a pipeline I segue quarter-to-date your quarter appreciate. the idea sense Kind and really think just yield pipeline from investments those is what yield a few on have general yield. of this sort same in assets? you of

I’d pipeline I is, Yeah, think say, the now flat. right yield it’s

stable, I the what new to assure to price in going last be And lower. I anything, couple discovery market, can what higher. of will think going early the sheet you, maybe there’s see on. volatility be. move we’ve put except pricing market. the out, But we’ve to lands. pricing the tried term it’s some we’ll basis I that done environment if points, potentially just level given described the now continued the a XX little with upside to it too is consistent in be not the If volatility The we’ve tell in will past its

believe of debt on pillar I there. times. wrong the potentially be JV the around Are mean, believer X.X itself, the – Do the could intend mean, me And JV? that you X.X, you What’s to I’m funding happening that with JV realistically also, any Thanks then X.X be within or leverages mean, if I grow know within there the the JV, I then is refinancing Just that think And incrementally? the think Okay. with I JV guys great? increased? be you on within JV, anymore? working down I said would cost brought capital reinvesting you there? Logan can for you’re correct do I there. where plus that. the

Yeah.

this costs lower lease that’ll to the both to and extent, we driver in the it’s appreciate good have into direction now, prudent. the given I’m it. the a position not to question. reference leverage activities to ability And exact that we a that say and we’re I the probably that we’re made increase pursuing right Now, it’s going to I a different point a all key few be question. think

We’re able that to we said, range. XX% in nice execute what XX% that NII, well, how to want see in increase I to pop think like performance can we execute, you

there, was company write-down me or I’m it that’s that just I correct company? sound Okay. been depreciation, that group, like that’s and wrong, was two the And more. been that main on then if of quarter. driver or – other one update there every a – down On the an know OEM marked

facing that issues the supply that semiconductor globally impacted the So we’re moment? by being at chain

has just me, in the XXXX. owned excuse and We where and so positioned of period been reminder, marketable. entire that in equity such We’ve OEM an way our business time. we some, the significant since a technology the as think a engineering finally the structure, for the investment a portfolio are develop capital Yeah, we capabilities debt could

Just the were comfortable given to sales size investment, investment we develop the not the a ourselves. force making of

partner private to So go issues on companies. specializes what distribution. into too obviously which Plasma going we These detail were. I’m in the two probably not Therm, with much are

we you’re do it markdown with I But XXXX. we’re to as XXXX the name. if largest for markdown think in with hurt been working my comments, we businesses those those NII – think reflecting in right, But my issues that behind earnings, XXXX and and income for book. reflected to again, the the we I we Again, believe as forward and to pains not it’s or it than good are two together the We softer on originally with underwrote. just said look the not first us, have was related on we a going optimistic just we’re categorized simply year. growing resolved pains

just you question. for a have catch But do last this previously, capacity remaining program, repurchase this current that What that on your program? of already appreciate quarter. didn’t bought it. guys And share think you I call. mentioned shares sort under some back I you Okay,

Jen? let have – I’ll in a place. program sorry, do we Yeah,

fine. that’s No, Yeah.

So implemented for we million we XXb-X. our were December through and had authorized XX $XX just

XXX,XXX. approximately repurchased we So

So million. I the then. out $X.X market say since we about have would been that We’ve in

We XXbX-X with will our of authorized we’ve continue capacity plans, plan right plenty now. but repurchase got

Okay, the Thanks. today. That’s for all that. me appreciate questions

Thank you, sir.

Jaden question Raymond Please Instructions] Thank Our with you. go [Operator ahead. James. is next Matt

modest questions. you taking and exit my Hey, appreciate versus Should in expect to mark? good said any I XQ. Chris, non-accrual morning, expect you we the markdown the XX/XX you think

a that be I’d on be Yes. further yeah. markdown yeah, referencing, there could position.

on… up following Maybe it. Got

to want it’s mean, just I small position. very I clear, be clarify, a to Just

So to a to even move book going a have further not markdown, it’s our if is material value. there

up do the a total longer-term following the opportunity, think percent as on target you Maybe what ABL question ABL Paul’s of portfolio? could a have enough. opportunity the Fair on of you represent

We target base. we now depending right portfolio lenders how our performs grow where our ability the XX%. may borrowing that XX%, the and to is to move Our with sit and

Last it. me for one leverage. Got on

So low hit you that we XQ. to think Chris, of expected XQ, the by in XQ said range I target sat end you as

unexpected target of XXXX, quarter, end So And short of you at just question the secondary into was a that get range? were flowing [ph] kind little that in that, a then function through? of would the low re-phase this expect to

Yeah, that was think XX with Igloo it the sizable quarter, very late what the position a X.X% I of was in came in book.

So that that came – came back late. in

So would our amount. small we have missed guidance by

Like last over Our we in I $X.X year, robust. pipeline did is said billion origination.

to the getting more pipeline, it’s point. I balance us not a It’s have leg distant on that So into and leverage. the right sheet for pressure

I obviously, X.X, So lot discovery. as going with some right we through X.X push in There’s of He some bit a to slow, like was price soon uncertainty that the now can. market. as

So will guess to that in near-term. in to pause X.X anticipate that I’d that business. here be be anticipate order. well, there’s short new new X.X we on to say writing and loans in stabilize But And we and a the I

Got it. That’s I time appreciate the for this it morning. me.

Thank you, sir.

I’m further not showing questions in queue. Thank you. And the any

and our before questions support of thank out spring free or All have to Jen then. additional to any the you providing update QX right. results. Feel forward reach XXXX Well, our in the myself if to appreciate an you, We look for you operator. shareholders

that, disconnect. and conclude program. participation, Thank your today’s you. for with we you now and may you Thank gentlemen, Ladies