Charlotte Simonelli: That was a bit of a softball, but thank you for that one. No. At the end of the day, our most restrictive covenant is our senior secured leverage ratio at 4.75 times and as you saw, we’re at 0.77 times, so we don’t have any concerns about breaching the senior secured leverage covenants. We do have a covenants that’s total debt leverage of four times that we are unable to do share buybacks. So we’re clearly beyond that, right now at 5.1 times but I don’t really consider that overly restrictive and basically, at the end of the day, everything that we’ve done over the past two or three years to handle this refinancing in a strong and positive market at the best terms possible, the significant transformation of the balance sheet, I guess the lesson there for everyone is take care of that when times are good, and then you’ll be well prepared when times — when the housing market takes these cyclical dips like it tends to do.
So, we feel really, really proud of what we’ve done over the past few years on the balance sheet and it puts us in a good position to continue investing behind our strategic priorities and obviously we start to focus on the cost, that’s just the right thing to do for the business, but I am not worried about those covenants.
Ryan Schneider: Yes. Tommy, that’s one thing that I want to just double down on a bit here, which is when you look at our balance sheet today and I give Charlotte and our finance and legal and other teams all the credit for this, I mean we’ve seized the moment a couple of times to basically, but a couple of billion of unsecured debt out to maturities like ’29 and ’30. We have done other moves beyond that, we paid off our 2023 notes and we moved from a world where we used to have a lot of secured debt to the point where our secured debt, as you know, incredibly low, right and hence you — even in a tough year for housing whether it’s ’22 or ’23, you can see that our senior secured leverage ratio is quite far away from our kind of most restricted covenants and it wasn’t an accident, there’s — when I talk about our transformation and the balance sheet part is as important as anything in this and so it is — if we hadn’t made those moves, we’d be having a pretty different conversation right now staring at a tough 2023 for our industry.
But whether it’s the lengthening maturities, whether it’s the massive shift to unsecured, whether it was frankly a pretty low rates that Charlotte and the team got in our lower interest expense and we used to pay like we’re in a lot better position there and that does give us the room to even in what is looking like a pretty volatile and kind of wild year 2023, keep making some of these investments, keep simplifying the company, keep changing how we do title and mortgage, keep investing to have franchise sales growth, things like that. So I love the question, still an important topic for us to stay focused on. We’re never going to relax on the balance sheet side, but it’s being prepared for these kind of challenges in the housing market and cyclical businesses.
It’s why we want to get ahead of these things and hopefully our owners feel like we’ve got the company in a very different position on the balance sheet side.
Operator: We have come to the end of the Q&A session. And with that, this concludes the Anywhere Real Estate year end 2022 conference call and webcast. We thank you for your participation, you may now disconnect.
