Mark Hughes: And then Jonathan, with the capital raise assuming the debt stays where it is currently let’s call it, what would the quarterly interest rate run rate look like?
Jonathan Clark: Well, if you look for our weighted average cost of debt for the — as of the end of the quarter, it was about 5.7%. So this wouldn’t — quite frankly, it would move it up a very little bit, but it wouldn’t move it materially is my expectation.
Mark Hughes: Okay. Thank you very much.
Operator: Thank you. [Operator Instructions] Our next question comes from John Rowan of Janney Montgomery Scott. Your line is now open.
John Rowan: Hey Jon, I just had two quick housekeeping items. Did you say that the revision was $0.60 to earnings? I didn’t quite hear it. I think you gave a $0.44 and a $0.13 number and then $0.60. I just want to confirm that.
Jonathan Clark: Yes. The total or changes was $0.60. Yes, $0.44 plus $0.60.
John Rowan: $0.60, I thought I heard $0.13, so I was confused. And then what was the $5 million in other income and the reason why the tax rate was so high for the quarter?
Jonathan Clark: Yes. Actually they’re all kind of related. So as you know, we’ve been reducing portfolio purchasing in the current environment in the UK and Europe. And so we — as I walk through, we reduced the size of our Cabot securitization facility. And accordingly, in anticipation of that, we reduced an associated hedge and interest rate cap and that produced a gain of roughly $3.5 million. So that explains I think how come the other income was higher than normal.
John Rowan: Okay.
Jonathan Clark: And in terms of tax rate, tax rate was higher as a result of a valuation allowance that was related to our European business. And so that’s how bit was higher this quarter.
John Rowan: Maybe will go — I assume it will move down to the mid-20s next quarter, correct?
Jonathan Clark: I think actually it will move down but I would expect for the year we’re going to have something — we’re going to have something more in the high 20s low 30s, because as you know where your tax rate lands is driven by where you earn your income. So as it moves around your tax rate is going to move up and down. So my current expectation would be high- 20s, 30s actually.
John Rowan: For the year though not for next quarter?
Jonathan Clark: For the year correct.
John Rowan: Okay. All right. Thank you.
Operator: This concludes the question-and-answer session. I would now like to turn it back to Mr. Masih for closing remarks.
Ashish Masih: As we close the call, I’d like to reiterate a few important points. We believe Encore is truly differentiated in our sector with a solid track record of results and superior capabilities. As the consumer credit cycle continues to turn, the US market is seeing the world’s strongest supply growth. We continue to apply a disciplined portfolio purchasing approach by allocating record amounts of capital to the US market, which has the highest returns. When combined with our effective collections operation we believe this approach will enable us to continue to grow our cash generation. This is a portion of the credit cycle we’ve been waiting for. Thanks for taking the time to join us and we look forward to providing our fourth quarter and full year 2023 results in February.
Operator: Thank you for your participation in today’s conference. This does conclude the program, and you may now disconnect.
