Dan Pietrzak: Yes. Steven, do you want to take that?
Steven Lilly: Yes, Eric, we’re continuing to be north of 2.5 quarters’ worth of dividends which is 1 of — we sort of hit that target, we’ve said on prior calls which was the impetus for our special distribution that we started during — earlier this year in 2023. And obviously, we just announced in conjunction with earnings that, that will continue for at least another 2 quarters during the first half of 2024. So pleased to have met that target. It’s another we think of as a sort of a nice asset to have and then share that excess with shareholders.
Operator: Our next question comes from Mark Hughes with Truist.
Mark Hughes: Just 1 question. Any material change in the prospects to generate the fee income once the market loosens up you’ve been holding the loans longer, you and everyone else. And presumably, the prepayment fees would be correspondingly lower. How sensitive is that income stream through the passage of time here?
Dan Pietrzak: I mean it’s an interesting point, Mark. And one, I think clearly, origination volumes, I think, for us and the industry broadly have been sort of lower, right? I think you can see that in the fee income numbers that you see. But if you do look back kind of to the same quarter a year ago, I think your fee income was 2x or 2.5x the size of sort of where it is today. So I do think that’s a nice, let’s call it, natural — even if we do see a certain amount of repayments, those repayments could generate, depending on when the loan was put on a certain amount of exit fees but then the new deals will generate a certain amount of kind of new deal fees as well. And I don’t think — I think the current quarter was $12 million of fee income. I think that’s lower than any kind of normal and historical sort of average. So there is a bit of balance there. I think it’s a very good point.
Operator: Our next question comes from Jordan Wathen with Wells Fargo Securities.
Jordan Wathen: Can you just give us some context on the decision to keep pure fishing second lien on accrual last quarter? It looks like that June 30 mark might have been informed by some discussions about exiting that position at a loss.
Michael Forman: And Jordan, just can you repeat the question because you faded out a bit at the end.
Jordan Wathen: Last quarter, you kept pure fishing second lien on accrual. It looks like this quarter, you exited that at a loss and that market at June 30 may have been informed by discussions with the sponsor about exiting that position at a loss. So I’m just curious, basically, why did you keep that asset on accrual last quarter? Is there any…
Dan Pietrzak: I think there’s sort of 2 points to this. The number one, you are correct. Probably most importantly, we have exited that position. I think that was in many ways, a good sort of outcome or a good result at the end of the day. And I think a bit of a testament to how we kind of risk manage the book. I think we were the asset continued to sort of pay cash. I do think the long-term prospects of that business will be — we’ll call it positive. I think it’s got some real sort of brands kind of attached to it. I think those were the drivers of the kind of accrual points and then the drivers of the sale was just kind of prudent risk management but it’s an exited position now.
Operator: I’m showing no further questions at this time. I’d now like to turn it back to Dan Pietrzak for closing remarks.
Dan Pietrzak: Well, thank you, everyone, for taking the time to join the call today. We’re available for any follow-up points as needed and we wish you and your families a happy and healthy holiday season. Thanks, again.
Operator: Thank you for your participation in today’s conference. This concludes the program. You may now disconnect.
