Five Point (FPH) 19 Oct 232023 Q3 Earnings call transcript

Greetings, and welcome to the Five Point Holdings, LLC Third Quarter 2023 Conference Call.

As a reminder, this call is being recorded. Today's conference may include forward-looking statements regarding Five Point's business, financial condition, operations, cash flow, strategy and perspectives.

Forward-looking statements represent Five Point's estimates on the date of this conference call and are not intended to give any assurance as the actual future results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. statements. future results may the to results in affect actual Five activities could anticipated or activities differ forward-looking factors results cause and Point's and Many materially from press These with release including factors the in Factor recent SEC. Point's Risk of the described Form annual include in report those and Point's on SEC those Five filings, Five most section today's XX-K filed any Five Point assumes forward-looking update statements. that to note Please obligation no

Officer. Executive Now to to Daniel I'd turn over Chief like call the Hedigan,

Thank thank today, of call. Tobler, joining Miller, Stuart Mike you. and former I Financial who have Officer; Chairman, our us Executive Officer; Interim remotely. our our Good for joining our Officer, Legal is afternoon, you Financial Leo and Chief with Kim Alvarado, is President now Finance Reporting. Kij, Chief Vice and our me our Chief Senior

the deal from like on last we update, promoted as great was Kim navigate well the Before to as Tax current Treasury our to management on us Chief his Officer. and and background mention business news call, changes. recent quarterly into Since our Vice President a some Tobler positive this environment of valuable and get I'd position execute Kim brings economic Financial suited help experience a Congratulations, priorities. is Kim. the role position and new to of to

assistance much our his great Thank us Kij rightsizing Leo. as did position achieve appreciated and we attention the personally Leo appreciative long-term job to are of very very goals. to We all interim CFO, focus you, SG&A I our on as our

for the on quarter are balance team's the of progress year. on and results also focus during priorities implement update QX the we the of you our you our to turn I'll me the steps to strategic through company quarter. let our the third taking and the Now update

the Next, condition. performance Kim overview give and financial an will company's of

main establishing and remaining I'd income team and balance. to We will management congratulate We $XX.X team. To line to with, appropriate managing our for for $XX.X and and focused cash on executing our generating quarter consolidated both then to our million net controlling this our begin near-term positive million, like business the priorities: our three earnings, open quarter our spend, questions SG&A those to flow added capital levels expenditures revenue with events. of ended matching of the limiting on cash

our end at $XXX.X balance Our of with million third revolver. hand the on reflects on sheet of $XXX quarter the a $X cash million drawn

liquidity and senior and report principal in our due I'm have bank the extension revolving our of XXXX. have on facility considerable are years. Reflecting We its XXXX. million, our progress our X notes for group, we maturity in over $XXX.X pleased no total repayment cash on allows senior to obligations us on debt which notes generation, until credit that to with focus our April attention our of extends This November revenue

long-term the senior mature confident for able the capital years, our the of this we we extending needs are don't focused we our repositioning growing and upcoming that debt, and notes profitability with provide to and as While position, our are company maturity be notes. cash we'll on of another manage for X

homebuilding, during Our year has with guest Kim we challenges this detail constructed that of SG&A but builders The line and trends. will spend most are in his continue for provide these recent be our there environment and our facing. on capital additional macroeconomic are numbers been to to remarks.

by longer we elevated are effects rates these side originally have entered Homebuilders major market feeling stay home levels to While new than that, to as still rate interest expect rates have the anticipated. Notwithstanding market interest homebuyers home mortgage offering higher higher resale with more of and rates. even we the reality products new the headwinds, continue have of rates of allowed stabilizing interest sales dealing demand that with for the appears of slows. interest as phase reduced in at a for are adjustment see buyers homes to also demand assisted

slightly supply be homebuilders the due of to my home may at as in continue allowed price albeit rates homes communities last housing new at increased our short of from inventory to has sell home limited supply. a as in very and as to Additionally, combination quarter, to interest to affordability constraint communities. the elevated a interest helping remains continues rates, inventory and comments market. a support Overall, our reduced levels, consequence be This builder you in California recall consistent continues to low, challenge recent pace

commercial land offerings. land unique commercial our we seeing limited are the side our business, and of in On interest

While has our if we're of as commercial their own for user users from still options basis. communities, and development interest seeing capital market a on limited spec they facilities long-term to control slowed the market of want own have

in to adjustments notwithstanding capital demand preferred this continue support this asset expect interest We in will the markets. user class,

we I would I remiss our that to geopolitical economy Finally, could did industry, note the continue and monitor. not will which the emerging impact risks be

updates Let first Great starting provide neighborhood. with our me now pivot Park and you on with some communities,

During the community Great builders third homes. quarter, Park in XXX sold our

in Sales nearing its factors, sell. combination Solis impacted was remaining approximately prices and by with during homes selling is our of offerings, affirming the of quarter and encouraged currently home releases appeal home sustained our prospective only maturity traffic Park climbing neighborhood for in limited ongoing the product actively interest and pace these the rates. the Despite a XXX we're including by community, buyers. to interest is rising challenges,

collections of four averaged a and Solis X.X homes During the out. sold per week pace sales quarter,

land homes which in neighborhood to Park There sales phases partners entered opportunities we in we underlying the product year. at land and are Great selected builder to into major we product February of top to the using carefully December XX identify through our interest by due revenues. XXX land builder pace. To Great home to offerings next our homesites prices, sale that Luna The contracts our with collections during builder were optimize commercial open work from executed across support Park, third strong the continuing debut sell to with is residential remains homebuilder market next us monitoring at Our On ongoing Park projected land. will allows two acquiring continue product. quarter inventory segment, sale

While there has land. been in that building relevant reduction a of slowed markets in for being pace California offered and Southern the speculative pricing our have offers

uses. in heart the flexible land in our zoning supported County in our with continued one land. market parcels location of Our allows a the commercial few entitled interest of Orange that offer We for large of has opportunities multitude

still Valencia, track for approximately close of acres uses, homes for end per on to and of early either distribution year XX As sales the commercial slated XX week. this home land totaled X.X next we we're of new and In pace homes mentioned the last quarter, overall year. or industrial quarter, sales by

from the X,XXX homes initial X,XXX have of September, end of of As homes with homes sold our been offering XXX remaining. only

neighborhood strong gradual opened products price is of strong week. increases detached sales experienced our Our has two has of phase pace interest, counter reflecting in and Valencia demand community. X.X release for seen average with newest per Each new homes

our year in Valencia, the and total anticipate we us million. a land neighborhoods in rest sales. result remain and closed quarter sales five current increased Builders of augment open Looking we two lineup offerings this will in third remaining into of and the engaged XXXX. for These $XX.X ahead, throughout with

Additionally, a year-end. we of anticipate number closing finished by the home sale of sites

structuring by spending. our management, [launch] As strategy both forward to expanding with for our reduce holdings, our expenditures of near-term capital shift are capital costs land our we sales feel which move they monetizing we with by and revenue homebuilding capital tying and to land certain on builders, of partners land positioned events the improvement helps ideally our

continue prime community. XX-acre in site market to also a We commercial mixed-use the

We we are necessary this of to program program. remains issue extension to in expect generated of tax the other also among next tax to passed the We're tax to time and when on shipyard. important is that to extend of extending the the that, we increments. development reflect efforts the and the financing completed integral step Candlestick project an allowed step first in lines existing This the both progressing public as the the important Candlestick from Navy Francisco, to report San once bonds developed State remediation more be secured completed ultimate will a happy which to the site, In by California have stand-alone an activities. that complement increment increment project by to the its for separate financing things, that shipyard development year. legislation establish of has report the

working agencies and rebalancing city development areas. Our current with between two include entitlements the adjust to efforts the county

as on we land have never at is Land Candlestick in remain there building of game, market, in the are communities, but program, forward our California. positive is are optimistic along beginning Francisco and the development located land about mixed-use our the not believe move state's of benefiting at and stand-alone closing, just public larger title uncertainty they're any momentum a first the game development we be With land financing some we with community we legislation there and while long in momentum of making future. more to Bay. In phase is an will the abundance the that this San irreplaceable the

value. focusing are positioned long importance maintaining game, and are Our for on recognizing well that we of efforts today are shareholder the ensuring creating

our turn for financial me guidance and to Kim, let over fourth on results will who provide and limited the will report quarter Now year-end. some it

of participation. these $XX.X XXX acres earnings of Thanks, which recognized Parcels. income project, in million recognized the a of We Dan generated for included At $XX.X mentioned, the today. our results Valencia sites And sales. consolidated quarter. million home Dan. before proceeds by we the A the XX.X% traditional release homebuilders on We gross was separate reported for margin financial in -- net for as earlier XX.X of profit was sale entitled of primarily $XX.X we Rose cash Two purchased our summary issued million land revenue,

Selling, administrative recognized reflects than addition, million and $XXX,XXX. to In range we is administrative $XX expenses average and line services general lower million, costs. revenue which million slightly revenue the million. other This on efforts $XX.X quarterly of projected to our were of in $XX $X.X hold our management

Great quarter management million includes which intangible We range. The $X.X for projected segment. our services $XXX,XXX at expense of expect the cost within was amortization asset fourth to be the Park SG&A

on of income quarter. the amounts and earned Land small our or $XXX,XXX. $X.X and entities unconsolidated the interest Valencia Bank We loss Gateway was in Park a cash This million and Great our the Equity quarter for equivalents earnings of our for Venture the income cash venture. from includes Venture, from also loss

profit most offset of Park income, Although land its did didn't the the recognize expenses. sales participation with it revenue, Venture quarter, interest operating together any have during Great which

CFDs of our Before like to call, TIF I'd a our inventory I play numerous TIF reimbursements. Since changes, our talk role in moment about received last and to we've questions the and our regarding take CFD review business.

and these include some such for financing So services. areas. financing of it These helpful drainage to We Mello-Roos, stations, communities. California, sewage on parks also the I few districts, developing provide to newly infrastructure of the improvements to thought bonds may facilities provide additional of construct would name all In to public community sources. funding known use improvements fire public as and be water, CFDs improvements streets, within things, our or and a sale financing purpose information this through

often upfront taxes incremental currently facilities what fund revenues. to growth Candlestick also Francisco, taxing needed also TIF in entities yet. qualifying to in receive make estate our tax TIF are is not of the on residents is In bond With known and designated redevelopment. community and other San have background, from In a finance captures TIF. increment a locations tax CFD property and real in Great community. as mechanism of a above there we existing that large homes many due where a beyond financing, the another hand, benefit public mature is projects time. Valencia, we case, enable to improvements number within with used improvements, infill short addition shipyard investments like that when and financing for newer as multiple can expenditures to community other emphasize the Therefore, the issuances reasonably as period geographic the area. receive Park of to in and within reimbursements the I'd been

development the business. in stages public started to So projects find to take early haven't our in a and we stages are participating to have for early where I receiving yet role of hope the to of reimbursements bond in CFD this the adequate it Likewise, position proceeds costs. are qualifying reimburse be longer very in CFD could Francisco understanding in immediately San TIF the reimbursements. of financing useful the you the

talk inventory. Now changes in I'd like to about our

Valencia. cost reduction attributable resulting had a CFD quarter, of built. to Of the inventory reimbursements by our in quarter, homes $X basis. $XX million when and CFD inventory approximately $XX.X During in by going million and capital reimbursements forward Venture for in interest exceed to Park for of quarter At million. to $XXX,XXX. increased paid you for million, that in $XX.X of which shouldn't a before on a are It of reduction Valencia increased segment Great resulting other CFD the net was for attributable million unusual fees, capitalized was million the our before We net $X.X inventory no of $XX.X $XX increase, million reimbursements the a a sales the received decrease reduction recurring and quarterly is expenditures are expect this

our segment's by attributable interest of inventory San increased capitalized of million. this During was the $X.X million. $XX.X Francisco increase majority to quarter, The

$XXX,XXX. a received TIF also We reimbursement of

liquidity. Now to emphasize I'd like our

As in our facility. liquidity revolving equivalents quarter credit credit $XXX.X capacity million want to the extend outstanding for available or credit against and working revolving these market. shown -- and the borrowings revolver Dan years million supply-constrained mentioned, $XXX Point XX. No September markets. housing to a at on banks their deliver credit and They borrowing our I Five to as of and were cash our of our to And challenging ability of our million have moment California's in letters us was end facility cash our of with to of was X banks $XXX.X for commitment total facility in take comprised thank

and at capitalization ratio debt to to net XX.X% taking Our account into debt balance total ratio cash capitalization stable XX.X%. down was is slightly and our our after

San Commercial, our reporting Francisco, or information review Valencia, recommend Park that XX-Q earnings filed. and I For regarding release when it's more the segments, our four you Great

additional an our to As Dan stated currently million. second cash With end our Park, in sales net on that that over always we an income drift mentioned, and expected a of I our that to the On We update million to between or have expected that year-end $XX said, in guidance. the to Great the $XXX both balance into it we the $XXX is the year for continue we I'll in to provide questions. Valencia year and million call, with expected close will that in quarter million that the of of support possible of now half produce sales last expected $XX the expectation. beginning that pipeline more year. With one the fourth that, operator to it are turn to

from BNP. Our first Instructions] of Seshadri comes line question with the [Operator Arun

good job a done have in difficult a You environment.

bit interest as as I about last land I to know wanted residential time talked in Just well talk first the little marketing. about Great you a both think the commercial Park. the in

the XX I expectation. think being acres about as talked you

if there's that. update start see to with any maybe wanted Just there and

actually we're we market. all lot-by-lot another XXX land be another acres it market. by take a you. a is group not land means now, kind at the which XX we could year. track XX acres close does We another on the of that with slip are still last the as anticipate moving right on some still It's of the looking But acres The commercial closed a this It that. bit. still actions little this on basis. into -- still on we're city, have to also end only We of progressing. But Thank section of of marketing it at

what you Can maybe seeing of details Is little prepared you there little like Do I -- also of broadly by And of slippage think modest you're can created expect of guidance. the additional headwinds the year-end process? provide high -- your then interest you end sort about are you of your a sort where bit cash of the year? rate mentioned that can the year, in talk sort comments, in talk interest terms thought in any in that impact of still expectations maybe terms in the exactly you And to instead of the it. environment. be the had a rates? of Got early maybe about bit next sort

that track, guidance, the on first, with actually year-end Well, we are guidance. consistent on

this so And that that very at point, we're good feeling about are to or based various in finalized. transactions escrow on close being very

kind what is question. a they interesting have of homes buyers through buying issue adjust kind the very interest to normal of it shock communities. that's went a Home and been rates the at quickly very rates, our of On rising new very and of

Now buying But up in keep doing we market We're to market find rates these back normal. interest And think drive support housing. are increases. will limited. where the down builders thing rates will facing homebuilders in in ticking is are shortage interest very those resale its towards And the which many of sales. new with another again And rates, instances, a just we're we terrible the now that. is will believe a California demand way over

and affordability light can always to afford that. -- [ feel be going -- an a a we to to I be want demand. the ] So new make will don't be going buyer is there there so home, is of But extent issue, to

your the One then last this question, it. Got way, is for Kim, Kim, and maybe congratulations on which elevation. by

great maybe wanted getting the little done. talk in a Just about job bit extension, a to revolver that

could sort the there's around That's and the on any all maturity. sense of you for around and the terms terms me. whether revolver bond conditionality extension Just any a any provide details

Yes.

able existing raised they thing publish the was And and in largely, be see an it really only But forward read to as was the terms. So relates the you'll we'll X-K, cost. be documents there. rolling it the revolver, to the and

going stayed more So known a to we're on draw when as term it revolver. have done. we've lost We beyond pretty that, close the to what's we pay what to But out.

So we provision the us to allowed and over whatever like That's had out, term equally. revolver an XX unusual pay out due balance in with maturity a which take was a months ours.

banks so the to up. were glad place. that that, a us four they together, how all we the we're deserved and they $XXX say back that market, in came which continue kept they X-year thought we in and see current and extension, million grateful And and But willing said and give that the banks gave understood could didn't for we very and we very the

work notes, As relates options senior our not have. said, don't We've may different I with. turning want we've thinking that But think we that can about talk reviewing been that right I cash think to as some the it things we've about part our of to reason so Board we as working those. attention Dan specific meeting don't with really regularly anything we're together we management done. the have we're and anyone that. so to That's that why increase hard we been to to the that our balances now have

good forward it's future. hear talking to look you and to Arun, So more in the

of Our Associates. next the line comes Zelman question Ratner with from & Alan

the here. progress on Congrats

kind about quite First in detail question sale lower would on bit lot you looks fourth curious if particular give prior higher a helpful. in And product Valencia the and can or of lot little it's Is this you're effort or composition sale. I similar the any I'm move-up be different thinking term? to of the of just look this segmentation lower concerted you going sale ones, on -- density, kind sales much much if more give intermediate terms of a price was of It the can in like guess, how the product. guidance Valencia quarter in than per density expected mix lot. your more to different product lot

higher Valencia and -- it density quarter, identified actually its in has this that seeing density that level Alan. they're demand a lower with good the was we're you're are entitlement, broad we zones in what up there. the segmentation in Thanks, for closed design, set that has driveways two and are sales and very of and and actually buyer seeing seeing density. that demand we're homes backyards lower move-up And for traditional area buyer by talking definitely Valencia, for very

just to trying But some I've area. and really of past, think where on preset to commented lower product I builders were in our both previously As of density is responding our in just I'm with work the at. product we're identified, kind be But to is of really a were the sure those the market. they

fourth the land they're to different the project. of actually to sections Valencia As going sales be quarter in

that's that but [ some that a product. of be There's condos. diverse ] a seeing going also our so And what mix you're to will closed is portion be be attached, have small to traditional going will detached this be quarter. There'll more than it

Dan. Understood.

still Second, that I with haven't when you is us a initially? question for project you is cash dollars impact can would ground, kind target would of and any help you the look phase know land the have first the development way line up Francisco But put San off before time there. there be I would uncertain given through my of is think does ready imagine would what sale. the some flow to like get

might just might like, the way how be long that before to look any to look about forward recognize that kind begin initial what So thinking through revenues think outlay there. of

Francisco, in are think always will think do we the about San vertical of but There need really we horizontal ourselves that the be developer. as site, when the horizontal development developers. Well, we for

we the looking from and access phase you to phase. of how and pretty that on side, that are part of first So we're they deliverable completion right now the at be city revenue first having the standpoint of tied Francisco San And conversations a site. events will of county is land with much as

as the We're really be spend-to-capital as variety but does we -- is need vertical how land development, does development. as that CFDs of be -- flow going to future talked part horizontal tied options be to capital of big it to So is a but about, through the matching and the to kind sales. approach That a to going going there's development. going initial vertical of of TIF, the near-term the Kim but revenue revenue from far and always really not revenue, horizontal

because development from that, think up frame horizontal that. and Just a to Any time XX-month begin on follow What a and of like understood Is lead I parcel longer, a to yes, ready sell shovel it is kind there? Dan, reference But ground revenue that having I recognize on? -- shorter? of to

of to don't not the Well, the on are the phase, driven is to get forward. from a having standpoint getting going I first I move extraordinarily to would phase, all in to to the by try to, many put frame hard initial the dealing what rebalancing mean, variables be things are actually that think that, from But phase done, positioned city I to say first always be long. approvals time a I so the we'd simply especially to once we it that today get is on because kind there are Candlestick. But not of with. want to have and

next [Operator the investor. comes Our Instructions] private line from Kaplan, a Myron of question

Yes.

shape you to like for timely and I'd all, of ship First elevation. your Congratulations, Kim for commend reporting.

Thanks, from Myron. to good you. hear It's

notes I rate of the XXXX, the in the what's due that are to Yes. coupon? ask, senior wanted

X/X ]. X [ and

principal amount? the What's

$XXX million.

So to elephant in so speak. that's really room, the the

I when at look I get when up. wake -- elephant day every in I the is It

understand didn't of Yes. were I acres a in an the commercial of Park land. wanted just XX ask Great talking to I what's -- -- Right you -- the off. parcel What informational about The just question.

a Yes. two of actually that combination Those in are actually pieces are the two pieces property today. that's escrow -- of

would anticipate be the those closing, So we end by the of year.

see. I

are contract? basically So under those

Correct.

Yes.

builder an the also or Just XXX and -- Park, of maybe at you Great have it's just homes. question -- informational sales

revenues substantial, yes? but are those unconsolidated, So

That's reporting. correct. the financial. the land Those reporting on that their and builders those themselves sales are are the they're sales They bought

than So the sold land. you've previously

that of Yes. We more Myron, future. they'll homes so that that land the people of the understand because can give need sales guidance, indicates in when pace

Right.

so questions book I taking pretty able seems I and very some that to tranches in that's you're a for environment. you So you more be well doing you're then more Well, it said -- revenue. you'll thank much pretty like releasing the tough guess what

line from of Capital. question next Fader-Rattner comes the Ben Our Space with Summit

$XXX,XXXs back going in site. sale. an past, you ]. wasn't question Unless if was over the this [ like think to read-through more this ] the on Was doing outlier? looks more some And answer I'm in from above wrong, math are talked an clear the I the about [ Just it Or $XXX,XXX per sale? or to it sale other average I expectations? Valencia was there the home the of this previous expected

not Well, really the an thanks. it initial It different. is outlier, the is phase. in Most our of homes

have phase We about talk phases we homes. X,XXX which the first about phase, kind two have we of about then initial And another of has XXX homes.

in actually to place, density. was are -- always be the lower so that that area buy put supposed And plan there lots certain as are part a of land larger overall that in zoning

zoned have be were been they produced. way lower to So density the

of them. followed The to caught we're what all It's finally them. actually to we're really them. kind of So infrastructure is kind seeing getting to that is up

And they course coming due the an kind were a were course lots SFD particular, market the on not -- in and based up them. And available traditional basically there had selling but in not And lots very selling a whole that a had in program traditional and through so continue of that's opportunity lot is saw project a right of well. some that larger now before, to SFD. we've Toll that they development

and It's how all how get of just land, to the land we due So it's the it's kind course. when been flowing.

other portfolio? you range. I that expect look compared your bank in value the would Valencia, that Well, site thinking you acreage what entitlement across in -- or expectations? consistent have if a can land give per you for sales to higher this correct the is home sense And you a maybe price perhaps just -- Is some is in it this with am as a

I what ballpark So product definitely kind to consistent that in with this answer of density and way is of we'd best that, the the type, think expect.

-- additional and land go of is we coming that's I of up that's it as anything there. we're other I look the hand, we the the don't in out have in plan else part think as at kind SFDs market, at what's On where

them per will So condominiums density all of those unit. are of And most going and have definitely lower either a to price be are detached they higher have attached.

And driving very numbers was at. this And product really this -- specific. so and it what's looking is is you're product those

see. I

which for could, All and 'XX, given about the Okay. one you you'd Or proactively the on are bonds? other at you point I'm higher And think balance point do balance think proactively now as refinance question. the decide haven't your you I refinanced cash asking the at know them. be just at then is right. if with the not And to which you comfortable bonds, to guess But you cash numbers likely versus you I here?

tell as to wait based we and is We with given strategically, Kim. we're balance And again, had to regularly. options. I the is bonds to this going to Ben, cash we're wanted would not working that Dan's been the for certain leadership, enough that a that moment as market and amount have you our soon increasing The when we've going so that. going on to focused we're on possible cash. on be deal monitoring going of keep we're

figure given cash with we're But and can't can is -- regular we'll again, trying we're on more with but quarter. what deal every maintain, the senior that sense? still been to it into to to the we've and notes, if But haven't watching our when something about which challenge trying is be so increasing makes that. optimistic address given and would focused each we're that So earnings And our we we've positive promise cash. quarter, been and on say and 'XX, is out we then guidance go working I market any

Yes. interest of No, excess that am when that believe optimistic in does. assuming 'XX, it G&A obligations? [land] will fixed correct proceeds in 'XX, and that is And -- then other I and in say expense you be sale you're you just any on costs

today, what is do. plan If to me that's you ask our were to

it's Okay. Obviously, helpful. but that's very uncertain,

Chung, of from the Kyle comes Our investor. next private question line a

right, you wide. date million it range, seems quarter guidance is is so that million and like between math price understand range a uncertain? your because which the my from for why looks $XX that is and I'd like wide first did quarter. fourth relatively into expect I it $XX close it's fourth is fourth mean, wide if and Or because free acreage quarter the it like slip is question closing quarter first wide to guidance I million, cash My flow to $XX the might

land timing Or so amount And is it it for of the and that's more price uncertain. because is the sale of a issue? the

of may Thanks, as we been all because it from Kyle. saying, timing timely everything Yes, received quarter something And it don't This a get is a We the issue. into relates closed. first is we've fourth slip didn't as in approvals the Kim. control something municipal fashion. can to the when quarter get

So we is a It's of much are those not still to how received. sales. question expecting going be

cash from flow free was that it? pushed that out right? take Is XXX% million that million, So it fourth being is quarter way clear, that quarter. your the first $XX Is think to to just the right ends that about $XX up to that investors should if be turns

Yes, to in we given do that planning And it are would to what the add math, quarter. first yes.

Right.

Okay.

that's and revolver, think restricted X-K but back has if bonds, And congrats under agreement renewing yet, credit filed have back, new been capacity the to my question buy buy on second discount. is, at helpful. elect So notes senior your you -- payment really to so, you the enough the I the do the revolver do a on

mean there Well, buy million. $XXX entire at a only the enough Again, notes I capacity revolver senior it's the isn't back discount. is to --

So...

partial you just that or a open at the like or bonds do mean in back revolver is for market? tender I a payment discount What the have capacity buy you for under no? to Do restrictive

a We us that to do don't would have allow not restriction that.

in hand questions queue. further management no are to the back like I'd call to There closing the remarks. for

us joining call, on our and On you today's of next behalf team, look with forward you. we Thank for thank you management quarter. to speaking we

for Ladies your today's Thank participation. teleconference. and does gentlemen, this you conclude

You wonderful have day. at and lines time, may this disconnect your a