Operator: Thank you very much. Next question is Christopher Nolan with Ladenburg Thalmann. Go ahead, please.
Christopher Nolan : Hey, guys. Given the increasing uncertainty of the economy, any plans in terms of trying to take some risk off the portfolio? You already cut back the base dividend, but nonaccruals were up this quarter, leverage went up, and it seems like if the economy really does tack that you guys would be vulnerable to some material impacts.
Michael Mauer : Yeah, Chris. Thank you very much for the question. A couple of things. The leverage was up a bit. Some of that is timing, as you know, where we’ve got some visibility on repayments, refinancing. Sometimes there’s a little bit of a mismatch of committing to a new deal before something comes on. So I wouldn’t read too much into the movement that you saw on a net leverage basis there was not, in our view, material from quarter-to-quarter. But you are right, it’s above our range, and we want to get in the range of the 1.25%, 1.5%. And as we look at the environment, we are concerned that it will deteriorate. We get paid to be pessimistic, not optimistic. And so from an existing portfolio, we continue to watch. We continue to have dialogue with our borrowers to think about what is happening and what is coming.
We’re seeing fairly resilient top line. We do see some cost pressures. But as Chris stated, we’ve got significant equity cushions. I think one of the key things is every new investment we’re doing right now, we’re focused around really three things, and that is the equity cushions are growing from where they have been historically. Recently, on average, we’ve been over 50% equity cushion. We are getting financial covenants, at least one in every deal we’re doing. We’re not doing any covenant light, new deals and we’re very focused. And I think this is one that critical things in a tough environment around when you look at EBITDA, how, I’ll call it, clean EBITDA is how much there is as far as adjustments in it. And as part of our underwriting, those are all critical things we start out with very good low leverage.
And even at SOFR where it is, good interest coverage, but we do need to be very focused on all of that.
Christopher Nolan : And as my follow-up, some of your nonaccruals, like American Teleconference services and 1888 have been a non-accrual for a while. And — is it better just simply just to exit out of these? Or is the anticipation that you can make a decent recovery.
Michael Mauer : I think it depends on the name you’re talking about. On PGI or American Telecom, we are in a process of working through it. It’s not 1 that you can just exit out of, neither one of these are. On 1888, it’s in a sector that is robust, and we’re working with them to try and find ways to maximize return on that. So I think very different stories between the two.
Christopher Nolan : Thank you.
Operator: Thank you very much. Our next question comes from Mr. Ryan Lynch with KBW. Go ahead please.
Ryan Lynch : Hey, good afternoon. First question I had, and I’m not sure if you said this in your prepared comments and I missed it. But — can you provide an update on where the weighted average interest coverage is on your portfolio today and how that compares to maybe six months ago or so.
Michael Mauer : Chris, I’ll let you — I’m not sure we’ve ever given it on a consolidated basis. But go ahead.
Chris Jansen: Ryan, it’s Chris. Our interest coverages by enlarge, have declined but are still in the 2.5-plus coverage range as an average. We have had a couple of our companies well outperformed. And that’s probably about as much as I can give you at this point.