Joshua Easterly: Thank you.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Bryce Rowe from B. Riley.
Bryce Rowe: Thanks. God morning. Just wanted to hit on some questions on the right side of the balance sheet. If you think about some of the repayment activity that you think will be a little bit more elevated in ’24 versus ’23 and put that in the context of where your debt-to-equity is at this point. Do you think you can kind of manage to that higher end of your targeted debt-to-equity range, meaning that I guess, net originations will be lower like you mentioned.
Joshua Easterly: Yes. I think I met growth originations will be lower. My guess is that will be the same. So I think we’ll be able to manage into our — into that range. But I think people are asking growth, but I think that will — I think that will be able to manage that into that reach.
Bryce Rowe: And Josh, are you comfortable operating at the higher end of that range? Or would you prefer to be in the lower end?
Joshua Easterly: I think we’re comfortable in the rate in the — at the end of the range. So we probably faded a range up to 1.25, and I think we’re comfortable with that. At moments we’ve got above that. I think people remember we were 1.33 and did an equity raise to bring it back into the top end of the range. But I think we’re comfortable in the range. I know we’re comfortable with the range.
Bryce Rowe: And then one more for me. You all mentioned pre-funding the ’24 maturity. Does that kind of insinuate that you’ll see the secure piece of the debt stack go up when we get to the end of the year? Or do you kind of like where you sit right now pro forma for the raise earlier here in ’24?
Joshua Easterly: Yes. I’ll let Ian — I’ll color after that you can comment specifically. So I think our base case is SLX is not backed into the market this year in the bonds. But the market changes, and we reserve the right to be opportunistic, but that is the base case. — which means that our secured debt, we will borrow on the revolver to repay the 2024. And so our funding mix will slightly change that has two impact was secured versus unsecured funding mix. The other impact is that’s our lowest cost of capital. And so it will bleed slightly into a lower cost of capital as we do that.
Ian Simmonds: And the other thing I’d add to that, Bryce, is we talked about getting to 70% unsecured in our mix pro forma for the January deal. If you look back at where TSLX has been historically, we’ve been in the ’80s. So when there are moments in time where it’s opportunistic and it’s beneficial for us to increase that funding mix, then we like that unsecured market.
Joshua Easterly: Yes, the base case is we’re funding on the revolver we prefunded likely to be effectively prefunded that and got that off the table as the base case. And over time, should lower the capital.
Bryce Rowe: Got it. Thank you all for taking the questions.
Joshua Easterly: Thanks.
Operator: Thank you. At this time, I would now like to turn the conference back over to Josh Easterly for closing remarks.
Joshua Easterly: Again, thank you so much for your time. We really appreciate people’s support. I hope people have an excellent presence day weekend, if you observe it, and we look forward to seeing people on the screen.
Ian Simmonds: Thanks, everyone.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
