Operator: Our next question comes from Chris Stathoulopoulos with Susquehanna.
Christopher Stathoulopoulos: I’ll keep this quick. Just, Quint, if you could walk us through cash total liquidity, including your revolver debt security? And also just remind us of the pilot open contracts, whether those were embedded in the out-year guidance.
Quint Turner: Sure, Chris. In terms of the last question first, I guess, the pilot open contracts, of course, we’re not giving guidance — we’re not refreshing our ’24 guidance. But if you’re asking if we had it included at the end of September, yes, we did when we talked to the market. But today, we’re not refreshing out your guidance on the expense side. But when we do, it will be in those status of the pilot agreements. As far as the liquidity section — and of course, there’s a slide in here, Slide 8, which kind of lays it out. But we have a revolver that it’s, I believe, a $1.1 billion capacity revolver that we’ve got undrawn, unused capacity of over $400 million on. Our current leverage ratio after including the unsecured portion of our debt, which is a new convertible, $400 million convertible due in 2029 as well as the remains of a convert we did in 2017 that’s $54 million that matures next year, and an unsecured bond that matures in February of 2028 of $580 million.
Taking that into consideration and looking at the leverage ratio, we’re currently levered at, I believe, it’s like 2.88x, our trailing. And so still conservatively levered with some reduction in EBITDA, we will be around 3x levered. We might even slightly go above it, depending upon how that comes out. But with the reductions in CapEx that we spoke about, there’s not a — there will be the ability — if we choose to allocate capital to delever, there’ll be an ability to do that as we look to the next couple of years. I mean, as we said in our remarks, the cash flow the business produces from the base of leases we have, you think about 75% or more of our revenue is through Amazon, DHL and the Department of Defense, that stable cash flow will continue and generate a lot of capital that can be allocated to deleverage, should we choose to.
Christopher Stathoulopoulos: And you think — you said in your Investor Day, you had more than $1.5 billion of available unencumbered aircraft collateral. There’s been some movement in [indiscernible], which would be a positive, given your 767 exposure on values. Is that number, give or take, around $1.5 billion of unencumbered collateral still the right way to think about it?
Quint Turner: Yes.
Operator: This concludes the question-and-answer session. I would now like to turn it back to Joe Hete for closing remarks.
Joe Hete: Thank you, Sean. To our stakeholders, we get it, receiving the news we reported yesterday after an upbeat outlook in September is hard to accept. We need to restore your trust by making all the commitments we know we can keep. Many of you on today’s call know me and the fundamental cash-generating power of the business that the ATSG team and I built over many years by investing for growth and shareholder return. I agreed to return as CEO to guide the company through the next phase of its development, which will require us to focus on maximizing returns on the aircraft assets we have today while taking a more measured approach to investing for new ones. And I’ve already told our employees that I welcome all their ideas to make us stronger and advised our customers that our commitment to best-in-class service remains the basis for everything that we do. Thank you, and have a quality day.
Operator: This concludes our conference for today. You may now disconnect.
