Robert Stefani: Ryan, it’s Rob. First and foremost, I’d say we’re going to continue to evaluate the timing. There’s a number of items just with respect to the Form 10 and outcome of the private letter ruling that’s going to drive time line and what the kind of comments that come back from the SEC or any kind of modifications that could be required with respect to that PLR. But suffice it to say, we’re going to continue to keep options open with respect to the form of the spin. And so, if capital markets create an opportunity, either vis-a-vis sometime of monetization options down at the century level, then obviously we’ll consider that. And that could take the form of the IPO markets are obviously clearly closed, but that could be an option.
Like we said on the announcement of the transaction, we’ll continue to look at sponsored spend. And I think what was revealed through our work with the agencies and the ras res process was that we do have the capacity to issue debt up top to support a delevering of Century. So, we would anticipate that we just continue to watch market conditions continue to assess kind of what that spend option may be, but we’ll continue to execute down the path of the spin with the Form 10. — going through this year. So, I think the timing is going to be more predicated on the Form 10 and the PLR
Operator: The next question comes from David Frank from Hale Capital. Please go ahead.
Unidentified Analyst: Hi. Good day. I was hoping you could I was hoping you could tell me what was the net debt balance at Century at the end of 2022. And then if you could please give us an indication in dollar terms of approximately how much debt you plan to place on the pro forma company at the time of the spin.
Robert Stefani: Yes. So, David, this is Rob. Slide 35 has a net debt position of Century. It’s about $1.1 billion, and that’s composed of as of the end of the year, just over $1 billion on the term loan and then just under $100 million under the revolving credit facility. As — can you just update what was the second part of your question?
Unidentified Analyst: Yes, sure. Could you tell us approximately how much debt you plan to place on the pro forma company at the pro forma Century at the time of the spin.
Robert Stefani: Yes. We’re going to do a rating agency process down at the century level later this year as we get closer to the spin, that’s going to inform the leverage we did, and it’s on an early portion of the presentation. We did include approximately $300 million. So, if you flip to Slide 6, the fourth bullet we did include approximately $300 million of planned deleveraging at Century at the time of the spin. So, we’re going to — we’ll continue to assess that. But that between centuries kind of organic deleveraging from EBITDA growth as well as the evaluation of potentially delevering up to $300 million that’s where we’re focused.
Unidentified Analyst : Okay. And is the goal to get an investment grade rating or just that’s not as important.
Robert Stefani: Yes. I think at this point, what we’d say is that I don’t know that we’re as focused on the rating as we are focused on positioning Century to have balance sheet it and position the business. Like I said, we’ll go through the ratings work later this year.
Unidentified Analyst: Okay. Excellent. And I’m sorry, if I could just follow it for one quick question. Could you tell us your previously — or remind us of your previously stated payout target? I think it’s around 60% midpoint for the company from now or
Robert Stefani: Yes, that’s correct, $55 million to $65
Unidentified Analyst: Okay. Thank you, very much.
Operator: our next question comes from Stephen Debris from Granite Lane. Please go ahead.
