David Kieske: Yes, Nate, it’s David. It’s a yes. I mean we’ve been very vocal and committed to getting leverage back to our 5x between 5x and 5.5x net debt to EBITDA Obviously, we ticked that up a little bit with the MGP acquisition and the agencies acknowledged that and understood we would work very hard to get that leverage back down and we’ve kind of exceeded the pace that we originally told the agencies in the summer of ’21. And then in terms of our 10-year money, we do have a maturity that comes due May 1, 2024, the window opens on February 1, 2024. We talked about, as we’ve mentioned collectively, we have $450 million of notional forward starting swaps out there. We’ve been legging into a hedge policy to get ahead of that refinancing.
That 10-year money today spreads somewhere 2.20, 2.30, give or take, 10 or 20 basis points over the 10-year. And so as we sit here today, with a 10-year 5, that’s kind of low to mid-7s capital. But we’ll assess the market is that a mix of 5, 7 or 10, is it all tens – we do have access to the term loan market that a lot of REITs do not have access to. So we’ll be very focused on ensuring that we extend the tenor, but also take advantage of the kind of the best pricing and the best laddering of our maturities as possible.
Edward Pitoniak: And I’ll just reiterate, Nate, that while it does not obviously show up in trailing leverage numbers when we invest $1 billion of equity against only $55 million of debt on our recent accretive capital investments, it will obviously have a forward deleveraging effect.
Nate Crossett: Okay. That’s helpful. Maybe just one more on the Bowlero. I think it’s about maybe 10% of their portfolio. Have they given you any indication how much they would be willing to do over time, just trying to like size the potential opportunity here?
David Kieske: Well, as we sit here today, Nate, almost all of their assets are in a sale-leaseback format. So it would be potential future growth opportunities as they find opportunities in the marketplace. And one of the reason we were able to build a relationship and develop this transaction over time is VICI’s desire to grow, VICI’s access to capital. And obviously, Bowlero desire to grow. And as you saw in our materials and the commentary. If you look at the Bowlero announcements, they’re very – they’re thrilled with the deal that throw the partner with VICI and the we’re optimistic there will be more to come together, but there’s nothing directly off the Bowlero balance sheet as we sit here today.
Edward Pitoniak: Yes. And I can’t remember the exact numbers. So hopefully, David or John might, Nate. But the thing to keep in mind is that Valero is the market leader in a remarkably unconsolidated category with Valero owning – do they even own 10% of the category, I think they own 10%. So their opportunity to continue to roll up assets can transform the assets, transform the experiences and transform the economics is where the future growth between Bowlero and VICI will take place And again, thanks to a basically a right of first offer. What amounts to an exclusive financing partner restate financing partnership, that we’ll enjoy with them for the next eight years.
Nate Crossett: Okay. I’ll leave it there. Thank you.
Operator: We now turn to Chad Beynon with Macquarie. Your line is open.
Chad Beynon: Good morning. Thanks for taking my question. Just one for me this morning. Different markets and countries are obviously going through different phases of economic cycles. And I know in the past, you’ve talked about growing outside of the U.S., understanding that these relationships take time – has anything changed in terms of how you’re thinking about non-U.S. versus U.S. opportunities with respect to current cap rates, multiples relationships? Thanks.
Edward Pitoniak: Yes. And I will point out as someone who carries both the Canadian Passport as well as U.S. passport, we have expanded internationally. Canada is another country and we’re very proud to be invested there. And John and Kelyn and the business development team continue to research international markets as overall real estate marketplaces and then the categories of interest the experiential categories of interest within those markets. And again, those are situations where we will make sure to take the time and take great care to make wise investments given that they need to be based on deep knowledge of the market before we ever commit capital.
Chad Beynon: Appreciate it.
Edward Pitoniak: I think, Elliot, that will wrap things up, correct?
Operator: Yes, this concludes our Q&A. I’ll now hand back to Edward Pitoniak, CEO for closing remarks.
Edward Pitoniak: Yes. Thank you, Elliot. Thanks, everybody, on the call today. We really appreciate you being with us, and we wish all of you the best during this very, very volatile time. It is a time we will get through. And again, we thank you for your time today.
Operator: Ladies and gentlemen, today’s call has now concluded. We’d like to thank you for your participation. You may now disconnect your lines.
