Patrick Schafer: On the legal entity name is HDC [Indiscernible] way, there’s a term loan and revolver HDC HW Intermediate Holdings, LLC is the legal name. It’s a company that we’ve had sort of marked below par for a period of time they have sort of 1 business that has been struggling and 1 side of the house, it has been growing pretty well, but the side of the house, it’s growing is a little bit smaller in the side of house that is declining. We’ve been working with the other lenders on a potential restructuring pathway for the company and kind of in light of the — what we hope is a relatively short pathway to restructuring, we felt it prudent to put it on nonaccrual in the quarter with the hope that it’s a relatively short-lived candidate within there.
Steven Martin: Is it a sponsor-backed deal?
Patrick Schafer: It was a sponsor a deal. The sponsor is not very involved at this stage.
Steven Martin: And was it a BC source deal? Or was it 1 you inherited?
Patrick Schafer: It was not. It was inherited from the Garrison portfolio.
Steven Martin: Can you talk about quarter-to-date events vis-a-vis repayments and sales, et cetera, and/or share repurchase?
Jason Roos: I can give you some high-level numbers on the purchases, we had about 18 — a little over $18 million of purchases, offset by approximately $30 million of sales and pay-downs. If you’re doing the role, then you have about a $1.7 million of unrealized gain offset by a realized loss of about $1.6 million. And then with accretion and some others, you get the delta in the investment portfolio.
Ted Goldthorpe: You’re asking about — you’re asking about quarter-to-date, right? I mean are you talking about activity through or quarter-end. Yes. I mean I would say there’s nothing — I mean, Patrick can speak up to you. But I think nothing outside of normal course. Like I don’t think there’s anything particularly different about the market today than we experienced in the third quarter.
Patrick Schafer: No, that’s right. We had one or two handful of portfolio companies repay. We’ve invested in one or two new portfolio companies. Again, as Ted said, I don’t think there’s anything particularly outside of the ordinary course that’s kind of gone on so far quarter-to-date.
Steven Martin: And share repurchase quarter-to-date?
Jason Roos: I’d have to get back to you on that number, Steve. But as you know, the program is — it’s an ongoing program. And when that turns out, we’ll set it up as we normally do.
Steven Martin: Can you comment on the CLO market? And given you’re over-earning the dividend, and your view on dividends going into the end of the year?
Patrick Schafer: Yes. I’ll take the CLO market and Ted can talk about dividends. I’d say, in general, the CLO market is — has been a little bit healthier, particularly sort of back half of Q3 and maybe a touch into the first bit of Q4 here that has led overall to a little bit better bids and pricing in the syndicated loan market in general as some of that CLO formation has driven the need to buy some assets. So I’d say kind of generally speaking, the CLO market is like a little bit healthier this quarter or where we sit today relative to perhaps sometimes in the last couple of quarters. Having said that, our — the CLOs that we are invested in, generally speaking, are out of their investment periods. So by and large, the CLO managers there are kind of making decisions around what they might expect in terms of repayments on their various portfolios, the relative OC tests and things like that around distributions, et cetera.
So our particular portfolio is a little bit separate from the CLO market broadly, but I’d say, generally speaking, the market has had some improvement over the last, call it, 6 to 8 weeks or so.
Steven Martin: So given your specific portfolios, the CLO — your CLO portfolio is a source of funds rather than a use of funds.
Ted Goldthorpe: It’s always a source of funds. It’s just — it’s always a different amount of source of funds, but it’s not a use of funds.
Steven Martin: Yes. I mean you’re asking…
Ted Goldthorpe: I think you’re asking about total return versus income return. And again, we’re getting positive income off our portfolio. And I think — I mean, look, it’s only a couple of weeks into the quarter. I don’t think we really know in terms of valuation. It’s small. And again, it’s 2% of our portfolio.
Steven Martin: And Ted, your comment about year-end dividends?
Ted Goldthorpe: In terms of a special dividend, is that what you’re asking about?
Steven Martin: Something along those lines.
Ted Goldthorpe: I mean, listen, we obviously benefited greatly from some of this M&A, which created some advantages for our shareholders around spillover income. I would say we feel really good about our dividend. Even if the Fed cuts rates which we don’t obviously speculate on because that’s not our thing. The dividend is pretty protected down to a pretty big reduction in short-term rates. So again, we assess every quarter — obviously, we’re comfortably over earning our dividend in a period of time where we’re getting — So I think we feel good about where our dividend is. And I don’t — again, we’ll assess it at year-end and see if there’s — see where we are in terms of spillover income.
