Rachael Easton: I don’t think so. And if there’s something specific you’d like to call out. I think we saw some really great unrealized depreciation at companies like educators, Brunswick Bowling — which Dave, you touched on earlier.
Dave Dullum: Okay. That’s good color and helpful.
David Gladstone: Yes, I think, Bryce, again, without going through each company per se, what have you, I don’t see any significant change, as you know, quarter-to-quarter, month-to-month, just because, again, as you know, somewhat it gets magnified, right? If you have 7 or 8x multiple and you get a modest change in EBITDA, that multiple can have a little bit of $1 million as an example. I’m making that up of a reduction in a valuation on something that might be worth $30-plus million. I mean, so again, I don’t see any significant concerns relative to the few that we did have on a slight decline valuation-wise.
Bryce Rowe: Okay. That’s helpful. And then last 1 for me, just looking at the balance sheet structure. You’re using the credit facility a bit more with portfolio growth. And if I heard you correctly, $65 million into SFEG would likely kind of call into using that even a bit more unless you access other sources of capital. So if you could just speak to your comfort with the capital structure at this point, would you look to add more notes like you’ve done here recently? Are you comfortable with where the balance sheet structure is or the capital structure is at this point?
Dave Dullum: Yes. Well, again, I’ll have Rachael add in here. But that amount that we have currently available on our line, of course, is the net amount currently based upon the cash coming in from, say, consoles, et cetera, the new investment, et cetera. So as of where we are today, that certainly is available capital for anything net new that we plan to do. We also, obviously, as I mentioned — generally, we’re in the market sometimes looking to exit certain of our portfolio companies and is some of that might occur over the next, say, 6 months or so, that cattle likewise will obviously come in. So short answer is right today, yes, we feel pretty good about where we are. We always will continue obviously exploring the idea of going out and doing another, say, baby bond.
And as we look forward to our deal flow and the opportunities coming forward, we certainly would look to potentially access that market and have the availability then on our line to provide the ups and downs. So today, I think we feel we’re in good shape, Rachael.
Rachael Easton: I completely agree, Dave. I think 1 other thing to add to that is continuing to use our ATM program when…
Dave Dullum: Right. Certainly supplemental but we don’t certainly concern about anything from a ratio perspective in terms of the fixed asset or the asset coverage ratio. And again, we are pretty active in keeping in touch with what’s going on in the market. So if we need to do something, we’ll do it. But right now, we feel pretty good.
Operator: Our next question comes from Derek Sun [ph] with Jefferies.
Unidentified Analyst: I wonder if you could shed a little more light on the macro picture as we approach year-end and David budget projections for ’24. Are any sectors seeing more headwinds than others? Or any sectors or end markets seeing pushback and passing price through to customers.
Dave Dullum: Sure. No surprise perhaps the companies that we own that are in the say, consumer product space. I would say we’ve obviously seen a little softness in some of those, nothing of any great significance at this point. But — and we certainly have been able to pass through any cost increases that we were having, a lot of it, as you know, coming from the earlier increases in supply chain transportation costs, et cetera. We’ve seen that come down pretty significantly and that’s been a positive thing. So in terms of us forward, even though in a few cases, we might be seeing some softness at the retail PAUSE level in terms of revenue. Likewise, we’re able to offset that to some degree with lowering our own costs. So from a margin perspective, we’ve actually seen a few cases where margins have improved even though overall volume has gone down.
