And now we have 40 locations that can be converted. So if we have to wait a little while, it just means that the brand is going to be even bigger and even more profitable and the valuation should be better. So if anything, waiting helps us. But we’ll have to see what the timing is just given the market. And in case anybody comes along and wants to just buy the brand outright from us in the next couple of years, that’s always an option too.
Roger Lipton: Right. And just to clarify, the $218 million of securitized bonds, I guess, you call it on your balance sheet. So you can pick your spots. I just want to make sure I understand — you can pick your spot in terms of selling them and the price in the marketplace. So you won’t be able to get $218 million if interest rates are higher, obviously, a great deal higher now than they were when those securities were created. Is that correct?
Andrew Wiederhorn: The way I would think about it is we have $50-plus million in cash after the acquisition of Smokey Bones or cash equivalents. And then we have this almost $220 million of available-for-sale asset-backed securities bonds. And you’re right that these bonds were issued for the most part, at 2021 fixed rates that may average somewhere around 6.75% to 7%-something. But today’s rates are considerably higher, so those bonds would sell at a slight discount today versus par back in 2021. That could be a 5% discount, a 7% discount whatever, something but nothing crazy. It’s really — a worst case way to think of it probably is there’s $220 million of securities and you’re going to get $200 million for, maybe $215 million, who knows.
But the point is that they’re available. It gives us liquidity, if we want to make an acquisition, liquidity to run the business, and that’s what we’re focused on. Now the markets are not as liquid as they once were. We all know that given where rates are and things like that. So it’s all a function of subject to having a buyer on the other end of the phone that’s at a price you want to sell at.
Roger Lipton: Right. Got it. We have to clarify that because I was — in my mind, I was thinking that don’t maybe worth $160 million, $170 million, but…
Andrew Wiederhorn: No, no, no, we’re not — we would not be sellers in those — at those levels. And also remember that while we hold those bonds, we’re earning — we earn that coupon on that. So we pay it and then we get it back like a bondholder does every month. So it’s not — there’s not really any cost of having those available. They’re structured and they sit on the balance sheet and it’s like we can jump into the cash register and pull one out and turn it into cash we need to.
Roger Lipton: Very helpful. Liquidity is good. Thanks Andy.
Andrew Wiederhorn: Any other questions?
Operator: As we have no further questions, this concludes our question-and-answer session. I would like to turn the conference back over to Andy Wiederhorn for any closing remarks.
Andrew Wiederhorn: Operator, thank you very much. Everyone, thank you for joining us and look forward to talking to you again on our next call. Have a good evening.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may all disconnect.
