Runway Growth Finance (RWAY) 2 Mar 232022 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the Runway Growth Finance Fourth Quarter 2022 Earnings Conference Call. Please be advised that today’s conference is being recorded.

I would now like to hand the call over to Mary Friel, Assistant Vice President, Business Development and Investor Relations. Please go ahead.

Operator. you, Thank everyone. Good evening, to the the XX, conference welcome Growth Runway quarter and for fourth December call fiscal And Finance year XXXX. ended

Finance Operating Chief on from Tom Officer Raterman, us call Officer are and Growth David and Financial Chief Joining and Founder; Spreng, Officer, Executive the Chairman, Chief Chief Officer. Investment Runway today

website can results at Finance’s after today’s just Runway fourth and quarter released Growth Growth runwaygrowth.com. Runway fiscal close Investors were be and Finance’s Investor from Relations year XXXX financial accessed market

have for a replay We Runway the Growth of the arranged call Finance at webpage.

remind During that on this call, historical are I want on purely The not may to based forward-looking statements current forward-looking are expectations. you statements statements. make that call this we

including are cause and pandemic, factors other and in These interest filings. conditions forward-looking impact statements rising results are market our in the actual of by the economic the surrounding not from and to SEC that forward-looking other changing subject caused guarantee those uncertainty without could differ we performance identify of limitation, materially the to expressed conditions statements, uncertainties COVID-XX future rates, factors and

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

and related obtain the hereof our The events. contained on update subsequent of please statements date forward-looking this copies to forward-looking Growth not should statements. no statements made on undue or the place as are forward-looking You SEC website. visit the Finance To obligation of these reliance call filings, assumes Runway

the call that, With will over to turn David. I

will quarter by for you thank joining highlights, the our to this then discuss quarter XXXX to providing start broader and market I and like XXXX. outlook discuss I’d dynamics us Mary, for you, results. evening fourth all Thank fourth

thesis the stage was year in portfolio public a the demonstrated We validated was the investment value for focuses in our venture a and as pursuing Runway. company. latest full on believe companies calendar was market. year our we It pivotal a XXXX first that

backdrop, increases leverage growth volatile Runway shareholders. dividend companies, for consecutive of to a Despite to fuel prudently while our to delivering its quarters non-diluted continued five portfolio deploy

track believe Since be have the lending to growth what to a moment and inception, record to companies. quality, summarize late successful built very of I we to our take we highest stage a year. want

per prior delivered points of our XXX X.XX We XX% $XXX Runway record originations public an ROE offering. to increase share from XX% our to dividend Increased marking leverage million. We to more basis seven-fold increase grew expanded $X.XX, XX.X%. base initial since than our and times. quarter

We $X.XX XXXX. our dividend teams our with by declared over Dallas. we of grew of intention dividend quarter the footprint in realized recorded Boston with first our in similar and in offices losses. credit per XX% each strategic zero new a Additionally, We expanded quarter dividend, to and payable with we supplemental a pay investment along share finance

in new fourth portfolio XXXX including investments new companies. million in existing in We results. and record with our closed to fourth turn completed loans. $XXX quarter let’s Now million portfolio growth. represents funded quarter This XX $XXX Runway commitments,

including industries. growth to committed product in and technology high sectors ever Runway service on life consumer potential know we quality, select companies as the is and best, focusing sciences,

offers the We compelling returns. strategy opportunities. fourth towards integral to deployed quarter, larger, platform segment risk-adjusted that of team risky view highlighting as to migrate less our PE-sponsored two an growth-focused the companies PE-backed our Notably, loans during companies

on power important schedule. on our potential the earnings Runway equity. is full from also target This core leverage unlock We our of increased an expand achievement our times balance X.XX and an return our quarter, times to X.X in fourth as reaching ratio sheet’s for the accelerated we range and

from income Runway represents This XXX% year net an XX%, $XX delivered of increase and respectively, total income approximately prior of $XX and in of investment quarter. the the investment million period. million

$XXX assets yet quarter, Net $XXX from at million up the prior in were end of QX fourth the from period, year $XXX million the the X% million XXXX. down end at of

Tom credit but rating X.X%, deeper dive portfolio QX. to improved weighted our will average into to continued our compared in X.X% quality,

We are portfolio. resilience pleased of with the our strength and

durable XXXX, continued we we macro economic While is built anticipate turbulence portfolio environments. in believe all for our

and our kinds team priority in evaluating diligence of ability been to our even we portfolio has become Fed and even during more to inflationary execute, top rate and grow is quality patient. additions uncertainty, to the portfolio. our of however, We the due increases our demonstrated efforts Our persistent and selective pressure, more Runway redouble

structuring underwriting. Runway Our venture position loans, loan-to-value the and cap terms our focus active believe of average that next across Relative is the focus as to beneficial first-lien of mutually to top as exposed secured This on demonstrated Runway of weighted least by risk. at listed portfolio. We debt we in our at amount is senior is our table. the the XX.X% entire BDCs, other well concentration of area origination

the we have loans, loan-to-value XX% exaggerated QX. team calculated to extremely portfolio insulate process our comparing grouping consistent during QX QX were in our dollar of consistent at QX. the at portfolio this and the done approach loans takes This As our In credit valuations. that in of and also XX% the conservative for end underwriting the past, to we valuation was ratio weighted reflects our loan-to-value in in from

proactively portfolio to identify we with positions, From term companies, our potential regular existing our process. to For sheet monitoring we navigate challenges. payment, ability and ourselves on their final communication to in assess pride our are

portfolio into approach. We a loan. is not with built on Our do each our take one-size-fits-all companies communication terms cadence

and that possible. is built to lender, to efficiently borrower all ongoing as customized monitoring our for Portfolio needs requirements of a core a while ensure on allowing that as from an base program set meets portfolio is operate the as companies

a process comprehensive valuation by and undergoes internally portfolio on a basis our quarterly in position each a Additionally, third-party. periodically

a for our our at portfolio in twice by investment amid confidence XXXX. specialist least environments reviewed operating in even material third-party gives marks, every companies. was This our challenging throughout valuation us portfolio perspective, For

broader market outlook, part Looking exit year the loans growth natural clear, an to recent are to are down also we declining, valuations alternative are lows. equity. slowing trends see deployments for view We activity as cycle. There at themes non-dilutive a is venture and of drivers the these three demand are as expensive

see is for credit and solutions. we creative Runways demand Our bar high financing increasing

deals, companies Our while models. to quality fundamentals originate team proven continues with and on sound business focusing high

volatility. late-stage data through faced decline continued activity The capital reinforces latest venture these XXXX According venture capital to the to market Data, ongoing recent PitchBook things. as

important X%. increments. remain to high, capital XX%, but data, historically and record this XXXX late-stage other in XXXX based on values count XXXX are XXXX, equity to by XX% However, deal in outpacing only to late-stage and companies words, by In levels note, deal smaller raise declined it’s respectively. Compared continuing

end billion. venture cycle. impact as a nearing slowed the of XX-year became is effect capital Venture capital significantly to though ecosystem investor apparent in a even XXXX, denominator in According record The PitchBook was Data, commitments. of full the in capital the venture quarter fundraising the $XXX expansion raised U.S. fourth

in trend deploying this that will very suggesting available for powder. VCs to expect future, We judicious the foreseeable be continue dry

resilience XXXX for billion growth fourth surpassing capital, as the year of according companies was bodes PitchBook, to well consecutive Runway. venture non-dilutive loan debt $XX new On venture-backed side, which in demonstrates fundings. the debt embracing the This

call Before want prior Tom, I a in. I turn the metric performance over we highlight to to take

the growth. XX% sustained Our five total stable landscape. dividends most shareholder a consecutive consistent becoming we shareholders representing the be dividend and increased our company, in quarters, while Since what this venture public We to return. building we to portfolio have believe debt achieved

the disciplined we strategy value. continue likely companies, we to portfolio execute our will While our macro impact drive continue long-term environment confidence to have that can to shareholder

XXXX, financing between business and to companies to to financing prioritize debt and Turning platform. the continues recession-resistant capital differential with be continue Runway risk. a equity for downstream The we minimal tailwind models proven cost

a to As supplemental terms we is a continue these and we on originations the the have experienced we slowest reminder, activity, this with program first is to of not expected to course, the call, market to consistent impact The evaluate be Board and to-date. the in of which deals pipeline with that discipline will opportunities marketplace employed This team see robust continues in rigor tends dividend earlier period we year-to-date. to what dynamic subject approval. have quarter discussed seasonally of

I turn Tom. it to will now over

included and $XXX loans. good new million David, Thanks, $XXX which funded investments and in in evening, everyone. representing completed existing million portfolio in Runway fourth commitments, new quarter, the XX in companies

Runway’s weighted the to X.X% improved in average portfolio third X.X% quarter. from rating

X rated rating have on we rating. our based reminder, risk X represents only At the a of X, X end, As scale to on to a status. non-accrual continue is portfolio most one favorable company credit where quarter system and

treasury XX%. $XXX.X million investment At year U.S. a fourth fair of the and to had approximately bills, quarter, increase for $XXX.X a approximately prior period. the the of portfolio, our XX% end sequential value the million compared represents third of This $X.X the comparable increase total billion, excluding a quarter of and end at year-over-year of

December quarter. at $XX.XX quarter, assets of share third quarter. Runway million As million, XXXX, $XX.XX the NAV $XXX.X end at XX, of had per fourth the increasing net compared at of the end was of third the end of the the from $XXX.X to

scrutiny. industry We we stable feel pleased with reflects our are of NAV, which leading levels

which will generally loan portfolio XXX% above closing floors, continue of loans upon base the benefit or rates. from is rate With interest assets, sheet. respect set All spread credit time to agreed our to interest plus reflects at interest the currently of signing rate rate term of comprised the the are floating rates, at or earning higher which

from In repayments, of we million million principal decrease quarter third in in received $XX the $XX quarter, the fourth XXXX. a

given equity to and activity remain markets. pullback prepayment relatively expect refinancing We a the low, in valuations

of environment, prepayments. it future targets predict our remain companies in number a late-stage difficult any attractive which acquisition to However, makes

$XX.X generated income interest of million, and the we $XX.X to million net investment rates. of XXXX, million total by rising growing quarter, In quarter $XX.X and of the portfolio income fourth driven and compared million fourth $XX.X our in investment

the fourth a debt XXXX, generated XXXX. quarter as average for XX.X% yield fourth compared Our of weighted portfolio quarter the dollar XX.X% to annualized for

to our Moving expenses.

fourth expenses fees. and an million, from driven management were $X.X and expense increase increasing interest incentive the the of For XXXX, total in by quarter, $XX.X operating for fourth quarter million

the the fourth $X.X of for Our to performance-based quarter XXXX. incentive fourth compared for was million fee quarter, million $X.X

million, average during management in Beginning dollars. fee per of XXXX portfolio in total up exceed size fourth the our the annum X.X% due XXXX, X.X% $X.X increase in management quarter declined now annum of in million from assets to from QX to $X.X our base per was with the Our our year. the fee

depreciation of $X.X quarter the of $X.X net realized the a realized to quarter, had loss of by of million Runway to unrealized net fourth recorded $X XXXX. driven gain We adjustments primarily compared for the in the fourth quarter, million a equity net fourth in million portfolio.

the X.X% Weighted average increasing X.X% the of during at third was interest XXXX. the from quarter, quarter end expense fourth

was funded leverage with as XXX% All and generate strategy at of XX% and the compared of End-of-period quarter investments as growth. fourth in were to asset XXX%, non-dilutive the the was respectively, coverage third XXXX. our portfolio to quarter end leverage part XX%

Turning cash compares liquidity. and conditions. on cash December to borrowing to total $XXX to XX, September $XX.X million $XX This XX, XXXX. unrestricted respectively, of available our million, XXXX, and liquidity and subject our under terms credit facility capacity At equivalents, our was all revolving and million $XXX.X million, existing including

million to enhanced conditions end, a facility our million Subsequent reflected further credit the to our increasing the subject by to liquidity terms $XXX and in as $XX amended agreement. we facility credit total of quarter by

to credit capital favorable at continues quality. terms market-leading maintaining in deploying be Runway disciplined while

life reflects underwriting entire the and while credit across of long-term our focusing Our negotiating, cycle loan, quality sourcing, growth a potential. on including industries monitoring, with rigor

continue capacity powder and while to We for driving earnings Runway to opportunistically shareholder is have available growth. grow positioned value. leverage dry

target to it the builds we the our our believe leverage of unlock of will As full range, upper potential earnings power. end

leverage marking we the On our tremendous core progress. and is times, which for that times portfolio, note, X.X achieved target X.X between

publicly in more we calls, safely leverage can As increase with have previous our BDC believe X.X our peers. traded to times, which said ratio line in is we we

Runway and approved to price XXX,XXX of In has aggregate, to program a program this the million. common repurchase In our XXXX, Board of time. million Directors the up stock. stock The XXXX during at a $XX expired renewed $XX.X of Runway’s program on not at shares XX, Board XXXX, purchased acquire February

quarter first increase. XX, share, on a our share our quarterly February Finally, of the fourth dividend from declared dividend increase Board quarter of base XXXX, dividend our for $X.XX an per $X.XX per fifth distribution XX% consecutive and

dividend of with our a a and the $X.XX In similar quarter addition, our of base in dividend per XXXX. supplemental share approved dividend payable intention Board to pay each

our prepared This remarks. concludes

Operator? for open now will the line questions. We

you. comes the Ladenburg. Schleien line Instructions] from Thank Mickey And our of first question with [Operator

Direct Good everyone. whether light and segment. segment I Yes. headwinds? in headwinds all we Retail evening, obviously, the is this not how you the to ask performing those are facing of I and I large, am about wanted curious it’s Marketing Internet is segment, David, that consumer I particularly but realize am this curious the aware of

for Mickey. the Thanks question, Yeah.

recession-resistant is the sectors of different we reminder, third broadly, one would tech, on kind we we the consumer and that the healthcare on and a So businesses. have just of on bucket that being we and always the are enterprise we like really within and focus quick mission-critical it’s life focused like cautious as sciences technology, most be

Reed, do it’s have economics and impressive that the the is was something resistant. those for quite meets deal not in recession the very done it to run, and it new that’s be so and And and to has really today, big have recession-resistant company the very us but very space to for you well metrics going momentum standards consumer last in a was quarter right, and Madison are really is economic good loan, and

then They small they a approach bars direct-to-consumer a big through roll to great economic actually a where built have with very in color of and cities model. fantastic equity these quite an out raised a omnichannel footprint bit business COVID

and a a into a the the importantly, monthly basis. subscription charge bar model much where pay most could regular is they a primarily on And come a as or fixed mostly color as revenue on basis want woman

do there our is that into the investment space. bar So portfolio. for we of think in to the highest room part smallest it’s the It’s that today, selectively continued get portfolio but

David, hear, I transparency. to and that appreciate good That’s

today, on and top in there’s portfolio in You to developing Anything remarks head focus us anecdotal the how don’t your portfolio. of in more tell a recall proportion sponsors portfolio sponsored are of your but flow I mentioned my of terms the in the extent what deal companies? your sponsored off supporting prepared portfolio is can you behaving headwinds the about

Yeah.

made to comment the companies. was prepared course. in Of The that remarks PE-backed referring I

category and are They we sophisticated was their their of PE different the was a So and very really QX than by companies great one and like counterparty deals that two are sponsored sponsor with our by to VC and did one sponsors, that in and BlackRock we sponsored for very traditional committed backing. us. Mainsale obviously

more we So plan companies. PE-sponsored to continue to look for

how a I the capital that question within though you venture is portfolio, that right dry broader behaving? are that access now. say VCs on sponsors The asked amount you have their of about of and a even the triage lot And doing powder there would the portfolios deciding seeing is lot to in of in are they land limited system

and going best to companies and this okay, only to really them ones and powder. are going love still don’t time them are be is know we a our VCs are know going them, additional feed thinking, to that but make to have the nice the let most cut let have we long But last we dry them don’t will us to very we

good, for So possible, back companies, you have ask dry is that much around. their it really them powder still we have to and and and advised and to do our actually, venture how do test investors go if

situations where have VCs otherwise what And commitments. so we have seen of out backed were

but go-forward coattails. guys a down result, we investing going will out where what continue let dirty call a that right investors, to and to say, will aren’t round the are as not occasionally, our you And we invest, we or see wipe the a

to that going are out. around really those we folks wipes So do

mixed it’s bag. So a

our on is dollar and are we equity. reminder, We of U.S. $XXX the than focus doing latest over as stage US$XX more companies because lucky really and company, of X-X have raised venture they average a million revenue million,

to and flush invested down be are $XXX more think prone toilet. a So they they might the very committed are most little They investors, only for going before bit. flushing where company twice part, a the have the to million

finding mixed the commitments, that’s stages choppy, than much very a you is VCs earlier on the late stages. that’s very industry it’s lot happening venture phenomenon the of at prior and So but remaking are a more

appreciate also I good hear. to that. That’s

give unfunded question. those commitments of how The but those Well, expanded of, facility, liquidity one your of us credit the pretty within on a I of lot liquidity much -- discretion. there’s commitments, Can comfort even you appreciate is and question at a are unfunded Runway’s unfunded level? a your discretion that Just with you sense liquidity. your expansion, your to but that with relative commitments tight,

Sure, Mickey. then million, XX/XX $XXX And funded other of eligible million, expire to $XXX.X of requirements This is have million and of million. at be $XX milestones What’s XXXX. that is because only unfunded Tom. $XXX $XXX been Total million. those was out during

we believe liquidity So that adequate that expanded credit facility. have more we than got we to have cover the and

We have to the debt also continue access will markets. capital believe we to

I… Well,

-- That’s sorry. am I

to to going and need. a take want year as the that more not interest decide think really need phenomenon but we Well, capital companies don’t available would we Again, XXXX. their the hard quantify seen have because numbers the had add no of they have that, they good to I they couple of of go job Mickey, because see and in cutting I don’t longer the impossible on that we pay had will done I burn to through money actually access, but say, that’s was a to they another milestones achieved capital, on, put

Okay. Well, equation then. a that’s bad not

No.

that’s XX% don’t by speaking. pretty at and there’s about for know couple level. question a quarters if amortized impacted also of calls are of which Those portfolio, a anything technicals now the is investment progressing. or marked down Mingle you market that us you been Healthcare has have those being on are valuations cadence, distressed can tell at if one I just companies And how generally for costs

Yeah. It’s we and technical more It’s analysis giving the to as for valuations, and think companies, value. some to be will way stumbling of not our really in use come thing. are to we and the that, so details, I best those with each are companies without market a specific up of those trying they conservative scenario

committee. our again audit auditors in and mind reconfirmed And third-party then keep value by our our is by and a reconfirmed

at So businesses it’s better just come a they think fruition, a fairly happen, the conservative extensive things until happening credit are we will will in that to are process, both those there in cases, and which position, put we on valuation. but

Okay Understand. That’s it you. your appreciate Thank evening. this I for me time.

Mickey. you, Thank Yeah.

Thank question the our Instructions] you. comes Zwick [Operator of Group. Hovde Erik from And next with line

near-term target, mean, I with you move times, Thank top, to of you the wanted made, would on to attractive are leverage and you. that could the is amount with of just kind X.X a I initial is X.X the believe stick guess, independent, opportunities? leverage times increase the question X.X the and that I that economic uncertainty, that closer and of a the you am we near-term, that in if mid- up times, everyone. I you can the see evening, within and Good comments given you long-term seeing is the here to range safely origination in even curious, you first start more

thought portfolio number loans well our we a quality and off of flow stage, Thanks, portfolio, that XX% of the something the in XX%-plus and rating. the is Yeah. two that’s with at first-lien continuously. stability has late is seasoned And course. process in the very cash the our a question, that look This and coming and range majority, our and portfolio income expanding starts unanticipated that an and continuously Not that evaluate really Erik. the

build are to -- a our became very was the confident demonstrate thought of the we quality a as public to the to we we quality company, portfolio prudent a used range, portfolio So ability and because in public we first investors. to narrower our it

about intend and NAV. done have be to to we support that But that we going Now see can very leverage, below -- that and raise adding judicious don’t are it. equity we more we we

we presenting that are of as the terms David improving. non-economic and the can So and way opportunities these take the terms advantage are themselves, mentioned, economic

over times well X.X see may we how out exceed season opportunistically then So that will time. things we and

these? there’s It’s two-part appreciate about curious to based just of that underwriting, manage economic part the that One, them behind how great. would how big out fund and maybe just the, the second turning two, differs non-sponsor I just a portfolio, of work on terms in I And situations out find is, that from sponsor the you a that plays resolutions work expectations? optimally commentary environment out, not there. the the guess, potentially stressed how original in a And question. side, portion general the from and given don’t

Yeah.

as Of return as, so and relates capital there that define not one really to or a all, more needs than notice. provide a underwriting, investor call an called if of course. we company that be actually short will investor Well, the and to the first sponsor and could very have the it is we on to be sponsored,

that’s what meant That’s to do. are VCs PE do. what firms So

and could have be had they on could that of investors, a it company ability a company may or private venture support it the non-sponsored a and out they dry to sit are Board, business and still company. And powder even be an the owner-operated public no company be could but

predictability going liquidity, how of to we that be a in the to lot on is a then path emergency no that these. and revenues call everything of would things, we I an tighter, is to if pocket say, underwrite is are -- underwriting and going either profitability, reason, case, And going deep those focused much to there’s more to whatever is our be if for

justifies have and perhaps, a even older a they and have some they to more They be an they that they dropping long years out around there’s and are of been And are are a and profitability. time. investment, decide even and years often years growth so initiative mature. little cases, going then And very profitable been in for

we going the sure after it happen will believe year course, and return, planned. would takes return whatever that make extremely two, closely what we or a reasons, But of that to analyze longer of for to that scenarios to they if are and profitability than understand

is would covenants. probably, requiring more say, and and as tighter and and underwriting the characterized different, I liquidity, So more cautious being it’s conservative more

going And winner the their over CEO, owner, then like are -- to they you depends distress, buckets in we business us, to it’s the to you the power know do of owner-operated of a if case one life. away have situation you everything owner-operated on are like company. next it whole going it of That’s entire which you their it’s to venture are the walk loser in one willing late-stage in companies the is livelihood to an in, It’s the prevalent, non-sponsored where or not were deals. because model, keys hand whether the venture on the not a based where and home with we from on know of is where this and being focus runs but to still less not tend based on the model the an

there So more sure to is from perspective, not a much make the that motivated that counterparty problem. is

sure the tap public and see portfolio able and the the underwriting, to an we of part a gain have company they And and in are the then will you able additional making capital. that the in into of several public in to our that’s to biotech and structure them of ATM markets our access through are world most case important

day, quickly really scrutinize we every the importantly we do as will is then, are to companies sell pressure the to M&A at company, don’t going we them we business. most company, could most because of And if the of the an end to sell default, our with we is process, there want encourage to foreclose, end a their want lives how and them, in

mean in think And it only don’t who important quickly a and we four what the the losses are, analysis I had it workout four so be can That even a be workouts no losses. or to a non-sponsored almost non-sponsored buyers are multiples loss I had sold. company. ever really will -- company. understanding as how have and related a we have more

part has without kind So, the been non-sponsored any so blemish. our far, business of of

Thank or supplemental That detail very there. into dividend, a detail have you the and informative. last was the curious you a if -- if similar expand provide the quote Curious that step then aside. will you that with basis. for or term me methodology one regards for for I I percentage could relative little how have I and quarterly mind more it sort to you some adjusted other you of to a a a fashion come with curious in are number some way? in regular determine if of similar on know about thinking NII out dividend, the BDCs to maybe other One

at flow as coming stands to of $X.XX that in would today into dividend range it, and spillover, Well, looked bit and portfolio that’s this the point, a spill-back with it the be came of off the we stay balance a the and when XXXX the cash thought as year. Board of at at for the it we looked

full we of as our get top will at see range. we So a point, formula or end to the end top year no this now spend the to close leverage to

taking much Thank so my you questions. for

comes line you. with Riley. Rowe Thank Next the B. question Instructions] from [Operator Bryce of

from evening. Good dividend maybe different I wanted regular here, Thanks. Hi. a question all I the hearing put further being preclude you we does place to ask of assume in work that as way XXXX? kind increases dividend not the and through supplemental base

That’s a assumption. correct. good That’s

there’s wasn’t stream this quarter, there prepayment the think, if past the income of a Tom. income interest income looking guess, in kind fourth and what Okay. at, just presentations, here you curious in much quarter. have the I out bucket? revenue broken I perhaps just And helpful, then, would That’s prepayment But component here within of have been

we prepayment Not the fees of $XXX,XXX. expect But for and quarter were, just wasn’t be the really significant near-term. kind can about significant. of under see, to The there in amount you quo as a that prepayment fourth status the

Okay.

That for I it answers. appreciate was the Okay. me.

Bryce. Sure. Thanks,

for that over call any closing to David now would Thank And hand concludes Spreng, segment. Q&A the back to I like you. today’s remarks. CEO,

is Thank our investment you, success execution strategy of the XXXX believe and We in pursued. we that Operator. validation

May. Runway shareholder backdrop our in we us are first for confident quarter for your and While the to and XXXX drive earnings forward the value and a next challenging in during Thank look stable expect any all environment. results you to myself joining generate you we support ability in on year, updating today team and market

Ladies and participating conference may you gentlemen, this disconnect. for concludes call. Thank you and now today’s