Edward Aldag: Mike, those hospitals aren’t going away as can be seen in the political fight about any potential closures of any particular parts of hospitals. People want those hospitals. The politicians want those hospitals all to stay open. We just believe this is already proven to us to be taking longer than we had anticipated. And we just don’t know any more at this point to how quickly Pennsylvania can be resolved. But it’s not a zero.
Michael Mueller: Got it. Okay. And then, I guess, on the managed care side, the $1 billion appraised value there. I guess –how should we think about how much of that you’re entitled to from, I guess, your — what you have structured into the leases. It sounds like you think that if it’s $1 billion as a base case, should we be thinking that you’re entitled to, at least based on what you’re telling us, the $170 million that you’ve kind of written down on the PA assets. So, that’s kind of the minimum threshold of what you think you can kind of — you’re entitled to out of the $1 billion valuation.
Edward Aldag: Yes, I think a different way to look at it, Mike, would be that we think we’re entitled to enough of it to get all of our money back, including obviously what we’re going to get out of Connecticut and what we think the value of California is.
Michael Mueller: Okay. Thank you.
Operator: Our next question comes from Tayo Okusanya from Credit Suisse. Please go ahead with your question.
Tayo Okusanya: Yes, good morning everyone. So a couple from me. Again, still on prospects. So again, you guys have moved to cash basis. I’m curious if from an auditor’s perspective, Prospect has any issues around being a going concern. If it does, how do you guys kind of think about the potential bankruptcies there on a plan B for getting a new operator for those assets?
Edward Aldag: So, we certainly haven’t had anybody to raise the concern of a going concern at this particular point. But we believe we are in the same place whether this is a bankruptcy or work together restructuring standpoint. Obviously, if it’s a bankruptcy, it may take a little bit longer, but we still believe we’re in a good position to recover all of our investments, including the deferred rent.
Tayo Okusanya: Okay, that’s helpful. And then number two, moving on to priority. Could you talk a little bit about just the economics of that transaction, the cap rates you did the deal at and also the seller financing what interest rates that was done at?
Edward Aldag: Yes, this is the one we just announced this morning, the additional six properties. These are six properties that were not owned by Priory when we bought the original transaction. These are owned by a third-party who put them up for sell middle of late last year, last summer. And we’ve been working with them. They — we believe they are some of the very best assets for Priory. And they will be added to the master lease with Priory go under the same terms that are there. We believe it will help even improve what’s already a strong coverage there and a strong collateral base.
Tayo Okusanya: But in regards to actual cap rates on it and as well as the funding cost on the seller financing and assumed debt. Is that something you can provide?
Steven Hamner: No, as you know, Tayo, we normally don’t give specific cap rates other than this is attractive and accretive and even on a cash basis with the seller financing is cash flow accretive. And again, is included in the guidance that we gave. I mentioned earlier the I think, roughly $0.03 net accretion to the transactions that we announced this morning.
