Rick Shane: Got it. No excise tax, or anything that we need to think about in that regard?
Kendra Decious: That’s right. We met all of those thresholds. That’s correct.
Rick Shane: Terrific. Thank you very much.
Kendra Decious: Thank you.
Operator: Our next question comes from Stephen Laws of Raymond James. Please go ahead.
Stephen Laws: Hi, good morning. Patrick, I guess, I’ll start with point this to you, since you mentioned in your comments. About, I think, half the reserves are related to the 5 rated loans. As we think about that, and kind of pair it with Matt’s comments that going to focus on resolutions, quickly and not kick the can down the road. How do we think about those moving from specific losses and to realize losses and running through distributable earnings over the course of this year?
Patrick Mattson: Stephen, thanks for the question. So, if you look at our reserves, as we said, about half of the 5 rated loans, or the half the reserves are attributed to the 5 rated loans. If you look at the asset, where we had the write-down in the fourth quarter, we realized the write-down about 16%, against a balance. And coincidentally, the reserve that’s held against those 5 rated loans is pretty close to that — pretty close to that number. We’re obviously working through each of these loans, individually, all of the fours and fives that are on there, going to have potentially different levels of loss content. Not every 4 rated loan is a loan where we think there’s a high degree of loss. Some of the 4 rated loans are on there as a reflection of the fact that we think there’s a near term catalyst or a near term event that may lead to a modification. So hopefully that addresses what you were asking.
Stephen Laws: Yes. I guess, kind of to take half of the one, where were we 111. So, if you’re looking at $55 million, we see all of that runs to a loss, assuming your reserve where your view at the appropriate level for the assets, resolved or monetized, but just trying to think about the timing of when that’s going to hit. Is that a this year event? Is it early next year? Kind of how do we think about the timing of those monetization, realizations?
Patrick Mattson: Yes, sure. I think the timing is difficult to forecast here. And clearly, with those 5 rated loans that we talked about, there’s processes in place to get to some form of liquidation event. So, not unreasonable to think that we could see some realization over the course of this year. I think the bigger question probably is just related to the quantum there. We feel good about where we’re reserved, but clearly in this market, the realized amounts could come in greater or less than when we’ve set aside.
Stephen Laws: Yep. Thanks, Patrick. And moving to the financing side on these loans, can you talk about how the watch list loans for finance, and if that is financing exposed to credit markets, how those discussions are going with counterparties as you work through these watch lists, loans?
Patrick Mattson: Sure. There’s a little bit of a disconnect between necessarily what’s on a watch list and, the loan — whether the loan is performing. As we’ve indicated, we collected 100% of our interest payments through last year, and the first payment date of this year. So, the real driver, especially on these non mark-to-market facilities is the loan current. And in fact, all of these loans are current. So there isn’t really much concern, and then in the immediate term, as it relates to those loans. Obviously, as we get to maturity dates, or we need further modifications or restructuring, that’s when we’re going to have more in-depth conversation with our lenders. I would say those conversations have been constructive. And to-date, as we’ve worked through some of the loans, the asset that we had a write-off in the fourth quarter that was not on a financing facility.
