Joe Adams: Sure. So from the cash flow availability, we think about it as, if you start with EBITDA and you strip out gain on sale and then you deduct maintenance CapEx for the engines, which is what you would need to do to keep the engines flying in repaired condition, we think that number is about between $60 million and $80 million per annum. So that leaves, $300-plus-million available capital to do whatever we want with. So therefore, our priorities have been to manage to a strong BB rating, and we think we should achieve that. And we’re there with two agencies already, but we want to be upgraded, so we want to maintain the strong coverages. Second is to do new deals. And obviously, we have a new engine now, the V2500. So we’ll be investing capital in more V2500s.
Today, we own about 60. I would expect we will own probably 150 to 200 of those engines by the end of this year. So that’s an opportunity for us to invest, but it’s discretionary. And then thirdly, when we generate cash, we would look to either stock buybacks or dividends for excess capital. So those are the priorities. I think it’s — this year is still a pretty active investing opportunity. So I think we’ll see some really good deals, which I think will be accretive and generate very good results for shareholders. So we don’t see a lack of investment opportunities at this point.
Brian Mckenna: Got it. Thanks, Joe.
Joe Adams: Yep.
Operator: Thank you. Our next question comes from David Zazula with Barclays. Your line is open.
David Zazula: Hey, good morning, Joe. Thanks for taking my question. First one is cash position, a little bit stronger. Could you talk about the near-term kind of working capital needs and near-term working capital intensity, given that you’re expanding the product’s business out? Has that changed what you’re thinking for working capital, the needs of cash, and the revolver capacity you have in the near term?
Joe Adams: No, I mean, we had — at year end, we had $90 million of cash, $300 million undrawn on the revolvers, so almost $400 million of available liquidity. I think we have $200 million of LOIs in the pipeline right now for deals. And so we’re good. And we’ll also — we’ll generate some more cash by selling assets throughout the year. So don’t see any significant needs or issues at this point.
David Zazula: Great. And then with the FAA, you talked about PMA kind of broadly the process, but specifically the changes of leadership of the FAA and then with the FAA having kind of new focus around Boeing and having to shift some resources there, do you see either of those events kind of impacting your PMA process over the near medium term?
Joe Adams: I think that the main issues that the FAA had from our perspective were during COVID. There was just long turnaround times and they lost — they had high turnover of personnel, some experienced personnel. So those problems have been addressed and have been largely fixed from what we see. So the other issues that you mentioned, a new administrator and the [MAX have not had] (ph), we have no sign that there’s any impact from either of those. But the main thing was the staffing and the people coming into the office thing, which has been addressed.
David Zazula: Great. Thanks very much.
Operator: Thank you. We have time for one last question, and that question comes from Sherif Elmaghrabi with BTIG. Your line is open.
Sherif Elmaghrabi: Hey, good morning. Thanks for squeezing me in. So I want to start with the well intervention vessels. It looks like those didn’t work during the quarter. How are you thinking about these assets, especially given the well interventions going through a bit of an upcycle and that’s cash that could be recycled into the portfolio?
Joe Adams: Yes, you’re correct. It was a bit of a headwind for us in the fourth quarter that both vessels were off hire. The Pioneer, the smaller vessel, is now on hire. It started its charter in December, I think. And that should generate about $6 million a year in EBITDA. So that’s — and that’s now on a five-year charter, so it’s in good shape. And we’re actively marketing that vessel for sale. The other vessel, the Pride, they had a breakdown, a maintenance event on the crane. It’s still in repair until March. And we expect that there’s a charter in place for that to go on hire in April, which is actually a pretty good charter. So you will see continuing headwinds in the first quarter and then hopefully both vessels will be on higher in the second quarter and onward and we hope to sell both vessels hopefully this year.
Sherif Elmaghrabi: That’s helpful. And then just on the 2025 notes coming due early next year, are you planning to pay that down and reduce leverage or could we see those refinanced sooner?
Joe Adams: It was actually late next year, I think.
Angela Nam: October of next year.
Joe Adams: Yes. So that — we have a lot of time, we have over 18 months. And we evaluate the market from time to time and think about those, but there’s not a real important deadline yet, so we’re monitoring it.
Sherif Elmaghrabi: Okay, thanks very much everyone.
Joe Adams: Thanks.
Operator: Thank you. That concludes the question and answer session. I’d like to turn the call back over to Alan Andreini for any closing remarks.
Alan Andreini: Thank you, Michelle, and thank you all for participating in today’s conference call. We look forward to updating you after Q1.
Operator: Thank you for your participation. This does conclude the program and you may now disconnect. Everyone have a great day.
