But we think that there’s line of sight in doing that within the next 24 months, given the cash flow we’re going to generate this year, and hopefully next year as well. So there’s a path there, plus the cash on hand, plus you’ve got some rolling stock dispositions that we can clean up, we’ve got some real estate assets and duplicative terminals, yards, things like that we looked at cleaning up really to expedite the pay down of our debt. But on the preferred side, we think it’s very investor friendly. It’s very company friendly paper, but you can’t ignore the fact that the 20 million of that 67 million has a 13% coupon. Now, what I would tell you is that currently the pricing on our term loan is about 8.5%, right. So 2022 is 4.75 but with all the rate hikes, we’re at about 8.5%.
So the Series A, I’m sorry, the Series B tranche one that carry 7%, good, very friendly paper, good coupon, good dividend relative to our current interest payment on our term loan debt. So that’ll like to stay in. But, 13% is a bit onerous, and we’re looking for ways to de lever the company and improve the free cash flow profile of the company. So that will likely come out as part of our overall balance sheet enhancement through some kind of large pay down here in the near term.
Jason Seidl: That makes sense. And in terms of the acquisition market, after the debt paid down?
Jonathan Shepko: Yeah, the acquisition market is still interesting. It’s been a little bit slower because of this bid ask spread that heavily pops up when rates move too quickly up or down. We do have one acquisition under non-binding LOI. And we’re cautiously optimistic that we’ll have that probably closed, late February, early March. It’s going to look a lot like the last acquisition we did, a little bit bigger but from kind of a value standpoint, still immediately accretive, still a great trend, still a great multiple that we’re paying and immediately accretive. We also have another few acquisitions that were close to getting under LOI. So we’re cautiously optimistic more so on the specialized side, that we can find good acquisitions that we can transact on that will be immediately accretive.
But I think that again, we made the comment in our presentation. We do want to live within this target leverage profile. We might intermittently take leverage up a little bit to transact on an acquisition if there’s line of sight to getting that leverage profile back down. But what we have on the table today, even some of these potential acquisitions that we’re looking at, we think that we can fund it with incremental debt, and cash on hand, even net have a meaningful pay down using cash on hand. We think that the remaining cash on hand will allow us to fund some of these acquisitions that we have in the pipeline. So we’re feeling pretty good about it. And I think that we’ve sized our acquisition appetite and our expectations right, based on where we’re at in the cycle, and where we’re at with our transformations.
Jason Seidl: Jonathan, Aaron, and team, appreciate the time as always.
Aaron Coley: Thank you.
Operator: Thank you. . Our next question comes from the line of Greg Gibas with Northland Capital Markets. Your line is open. Please go ahead.
