Jerry Kalogiratos: I think we have some time until we cross that bridge. And we have been always prudent in the way that we calculate our capital reserve even notionally. So despite this being a non-amortizing instrument, we are still — when we’re looking at the cash we generate, we allocate notional cash under capital reserve. But having said that, I think the base scenario is right now that we will potentially refinance with a similar bond closer to maturity. The market, the Athens Stock Exchange seems to be open. There has been a placement by another issuer recently and not very different pricing compared to what we achieved a year ago or so. So — but this is — at the same time, we are also creating a lot of headway in terms of our leverage. I mean, we are repaying about $88 million of debt amortization every year. We have Unencumbered assets. We are generating cash. So one way or another, I think we don’t — we’re not particularly concerned about that maturity.
Frank Galanti: That makes sense. And one more, if I could. Just in terms of — you said about a quarter to fifth of capital to be returned to shareholders. And now that all the vessel drop-downs have been completed, can you sort of talk about how you are thinking about the split between share buybacks and distributions?
Jerry Kalogiratos: Yes. I think it’s that very logical that we have communicated in the past, and we have said that once the drop-downs are complete, that we will reconsider our distribution policy in line always with the strategy. And I think that if you look at what we’re doing today, that is unit buybacks and distributions, we’re actually quite close to these targets, having also somewhat increased the pace of our unit buybacks over the last few months. Now, I think the difference compared to when we started is, of course, the current rate — interest rate environment. I mean, when we started thinking about the drop-downs and the potential distribution uptick and — but it is a very different interest rate environment, and until we have more visibility with regard to the forward interest care will continue with the same communicated distribution guidance of $0.15 per quarter.
The Fed decision just two days ago clearly demonstrates that we’re not past that increasing interest rate cycle. So, I think we are in line with our stated policy with regard to how we allocate our cash flows. But of course, we are going to be mindful of the interest rate environment and changing circumstances as to how we look at this in the future.
Operator: Our next question is from Climent Molins [ph] with Value Investor’s Edge. Please proceed with your question.
Unidentified Analyst: I wanted to ask a bit about the environmental upgrades you’ve done over the past few months. Could you speak a bit about what kind of efficiency improvement are you looking at? And secondly, you mentioned that Hapag has paid for part of the cost. Should we expect charterers to put part of the bill on other potential average going forward?
Jerry Kalogiratos: That’s a great question. So, the bow modification and the self-polishing silyl acrylate paints, each of them, theoretically, they will give you net efficiency gains anywhere between 2% to 4%, but it’s not always — they don’t always work, as you would expect. So, it’s not necessarily that you would expect 4 plus 4 equals 8%. But they definitely make a difference. We expect that this will help the CII rating of the vessel and of course, the energy efficiency. I think we can maybe — in a couple of quarters from now, we can revisit this and give you actual numbers, because these are, for the moment, theoretical. But from other bow modifications and use of paints, we see that they can be meaningful. And of course, the benefit is here for the charterer who pays for the bankers.
