Steven Hamner: Thank you.
Operator: The next question comes from Tayo Okusanya of Deutsche Bank. Please go ahead.
Tayo Okusanya: Hey. Good morning everyone.
Edward Aldag: Welcome back Tayo.
Steven Hamner: Welcome back Tayo.
Tayo Okusanya: Thank you very much guys. I appreciate that. First question I have is with the announced recap and this idea of kind of $2 billion of kind of asset sales and unsecured debt. I am curious when you think about asset sales and just the overall structure of the company at this point, what opportunities do you think you may have to potentially sell assets that maybe the Street does not give you guys a lot of value for? And specifically, I ask about things like again, a lot of the investors, investments you have in your operators or even investments you may have in the markets where the average investor may not be as knowledgeable about that market like Colombia or Spain or somewhere like that.
Edward Aldag: Well, Tayo, I think we actually have interest in every single one of the things you just said with maybe not as much excitement about the LTACH portfolio. But certainly, from the acute care, the IRFs, the behavioral in every geographic location that we have, obviously it’s not the same buyers for each one of those areas. I think the biggest thing that the Street doesn’t give us credit for that’s there, which is that we will – we have tremendous interest for these assets at greater than our net book value.
Tayo Okusanya: Got it. But do you see value in maybe, again, focusing on selling some of those things you don’t get credit for? So, the story becomes simpler and easier in many ways for investors to kind of calculate what the true value is.
Edward Aldag: So, we understand that, and we understand we don’t get credit for that. We do actually have some investors that are interested in that. But keep in mind, it’s a very small number.
Tayo Okusanya: Got it. Okay. That’s helpful. And then just another quick question just around Steward as well, I think you did mention that you will be filing the financials and they kind of have this whole plan in place. Anything else happening there in regards to – I know they had a bunch of management changes earlier on at the beginning of this year, have those positions been filled? And kind of from a strategy perspective, is the company kind of have a well-rounded management team again?
Edward Aldag: Yes. We are very comfortable with our management team, and I suppose the two that you are referring to, the first one is Sanjay, who was the President of the company for a little while. He left under very good circumstances. He stated the company and his and Steward’s request for a fairly long time after he announced that he was going to a managed care company. Still maintain a very good relationship with them. And then the other one, primarily I think you are referring to would have been the Chief Financial Officer that was there for a very short period of time that was replaced with a former Chief Financial Officer. So yes, we are very comfortable with the management team.
Tayo Okusanya: Great. Thank you.
Operator: Our last question comes from Josh Dennerlein of Bank of America/Merrill Lynch. Please go ahead.
Josh Dennerlein: Hey guys.
Edward Aldag: Hey Josh.
Josh Dennerlein: One follow-up on the secured financing. Yes, how should we think about the rates that you could potentially achieve on secured financing versus maybe just like unsecured market right now?
Steven Hamner: Well, I don’t think the unsecured market is available to us right now. So, it’s probably at best an apples-and-oranges comparison.
Josh Dennerlein: Okay. But what about the rate on a secured note today?
Steven Hamner: Yes. I think as you probably know better than we even it would depend on the asset type, on the coverage, on the quality of the asset, on the term and other less direct components like who and if there is a guarantor and so on and so forth. But we probably wouldn’t publicly announce what we think we would take, so.
Edward Aldag: Other than to maybe say way below what the implied rate…
Steven Hamner: Yes, that makes – yes. Exactly.
Josh Dennerlein: Okay. That’s helpful. And then the seven facilities that I guess you are going to sell back to the tenant. Sorry if I missed it, but did you say like what the cash proceeds would be from those sales? I think I heard you get $17 million of deferred rent back, just not the overall…
Edward Aldag: I have said that we would not only get the deferred rent back, but we would also going be made whole on our investment.
Steven Hamner: We did say it’s about 1% of the total. So, you could probably do that arithmetic.
Josh Dennerlein: Okay. Alright. Thanks guys.
Steven Hamner: Thanks very much.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Ed Aldag for any closing remarks.
Edward Aldag: Again, thank you all for listening in today. As always, if you have any additional questions, please reach out to Drew or Tim, and they will get the right person with you. Thank you very much.
Operator: The conference has now concluded. Thank you for attending today’s presentation and you may now disconnect.
