Steven Martin: Great. And you had some maturities during – at the end of 2022 that got pushed out, and I know you have some maturities in 2023. Is that what generally what you’re talking about?
Patrick Schafer: Yes. That’s correct.
Steven Martin: So if you have – they’re mature companies, if you had to extend it wouldn’t be the worst thing in the world and you get them marked back up – so you’d get the terms closer to market?
Patrick Schafer: I mean they’re situation dependent, but generally speaking, yes, though there are some situational dependent on what is in the best interest of the company and our position relative to “market rates”, but yes.
Steven Martin: Okay. Given that the portfolio is pretty static over the last three months, if all the rate increases that are pending that roll through, what would be the impact on investment income? Clearly, if your debt balances don’t change, your interest expense doesn’t change?
Patrick Schafer: That’s right. I mean I think we still have a little bit of continued momentum in kind of the rate movement. And again, I’d say this portfolio is probably on the relative low end in terms of fees and things like that just because a lot of our kind of new assets where we have kind of OIDs and call protection and things like that, there hasn’t really been any churn in kind of the newer portfolio. So I think we’re still kind of on the relatively low end from a general fee perspective. But I think it’s probably fair to say that, yes, without any material change in sort of the portfolio that obviously we’re kind of in a relative run rate state from an income with – again, with a little bit of increasing from benchmarks and things like that.
But there wouldn’t be anything dramatic. Again, outside of, as you mentioned, Steve, some positions exiting kind of high grading the portfolio from a taking out an L500 loan replacing with an L700 loan. There’s obviously that stuff that goes on. But yes, in a static environment, as you mentioned, then that’s generally correct.
Steven Martin: Okay. You want to comment on – and I know you comment on it on Portman. How do you feel about the discount to cost? And how much of that mark-to-market might be recoverable over time?
Patrick Schafer: Yes. So we didn’t run – I guess you’re asking, and we didn’t run a specific math of X percent default rates and Y percent recoveries. We can do that. I would say – and you can follow up on that. I would say, in general, we feel pretty good about where we have the portfolio marked from a fair value perspective. As Ted mentioned, I mean, some of those portfolio companies picked on the equity side continue to perform very well. So we do think there is a long-term upside and some certain positions. But where we sit today, we feel pretty good about the marks. And again, like this portfolio is a little bit newer or at least half of it is relatively new. So it doesn’t have quite the same mark-to-market impact to date that the other portfolio Portman Ridge you referenced has. So they’re a little bit different composition. So that is probably best I can say right now and we can follow up with the same analysis that we did on the other portfolio.
Steven Martin: Got you. Just give me one second. Yes, because you have, over the last couple of quarters, marked the equity positions – the old equity positions down somewhat. And I assume that’s environmental as much as anything else?
