Q2 2021 Barings BDC Inc Earnings Call
[music].
At this time I would like to welcome everyone to the Barings BDC, Inc Conference call for the quarter ended June 30th 'twenty 'twenty 1.
All participants are in a listen only mode. A question and answer session will follow the company's formal remarks.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
Today's call is being recorded and a replay will be available approximately 2 hours. After the conclusion of the call on the company's website at Www Dot Barings BDC Dot com.
Under the Investor Relations section.
Please note that this call may contain forward looking statements that include statements regarding the company's goals beliefs strategies future operating results and cash flows.
Although the company believes these statements are reasonable actual results could differ materially from those projected in forward looking statements.
These statements are based on various underlying assumptions and are subject to numerous uncertainties and risks, including those disclosed under the sections titled risk factors and forward looking statements in the company's annual report on form 10-K for the fiscal year ended December 31st Twenty-twenty and quarterly report from form 10.
Q for the quarter ended June 30th 'twenty 'twenty 1.
Each as filed with the Securities and Exchange Commission bear.
Barings BDC undertakes no obligation to update or revise any forward looking statements unless required by law.
At this time I would like to turn the call over to Eric Lloyd Chief Executive Officer of Barings BDC.
Thank you Brock and good morning, everyone. We appreciate you joining gross for today's call.
Note that throughout today's call, we'll be referring to our second quarter 2021 earnings presentation that is posted on the Investor Relations section of our website.
On the call today, I'm joined by Barings, BDC, President and Barings co head of global private Finance, Ian Fowler, Brian Hi, Barings head of U S special situations and co portfolio manager and the Bdc's Chief Financial Officer, Jonathan Bock.
Before you enter John review details of our portfolio and second quarter results I'll begin with some high level comments about per quarter.
On the strength of the market trends globally and in the middle market. The second quarter remains very active.
Increased deployment, along with continued strong portfolio performance helped drive the stable earnings profile and dividend increase we will outline today.
Let's begin with the market backdrop shown on slide 5 the presentation.
The near term trends, we outlined on our last call generally continues into the second quarter with elevated broadly syndicated loan prices and rising BDC equity prices.
Several cases select BDC has traded at or above their pre COVID-19 highs and the competitive market for direct lending assets continues to drive net.
Asset values and valuation premiums higher.
Barings Bdc's performance mirrored the strong industry results with highlights summarized on slide 6 of the presentation.
Net asset value per share increased to 2 per cent in the quarter or 25 cents per share to $11.39 with the increase driven by improved portfolio marks from portfolio investments and net investment income again exceeding our dividend our.
Our net investment income remained stable at 22 cents per share aided by interest income associated with new deployments as well as an increase in accelerated OID from prepayments.
Additionally, the underlying stability of our net investment income is further enhanced by our incentive fee structure as our earnings continue to exceed our 8% hurdle rate and remain in the investment catch up.
As a result of these trends our board elected to increase our third quarter dividend to <unk> 21 per share or a 7.4% yield on our net asset value of $11.39.
Regarding new investments, we had originations of $264 million in the second quarter. This was offset by $242 million of sales and prepayments of 156 billion of which were sold to the JV.
Recall, our original origination guidance has held consistent with.
<unk> became the manager 3 years ago net we would generally expect to see gross deployments of around $100 million per quarter subject to market conditions.
Our investment portfolio continued to perform well in the second quarter and it remains valued above our original cost.
We had no non accrual assets at the end of the second quarter.
Slide 7 outlines summary financial highlights for the quarter and the second quarter investment portfolio stability as well as increased investment activity associated with Oh idea acceleration continues to drive total investment income and net investment income higher both on an absolute and on a per share basis.
Net unrealized depreciation was also strong at $14.4 million as a result of mark to market improvements across both debt and equity investments.
Net leverage which is our leverage net of cash and short term investments an unsettled transactions will stable at 1414 times and remain well within our target range of 0.92125 times.
While we're proud of our past a couple of accomplishments I want to reiterate my excitement for Barings BDC in the quarters ahead.
We remain a leader in our core markets with an extremely wide investment frame of reference.
It allows us to be selective when competitive market forces increase.
Additionally, the stability offered by our incentive fee structure further provides earnings cushion against unforeseen events as our earnings exceed the 8% hurdle rate.
Coal a declining earnings caused by non accrual loans are refinancing assets at lower yields were first result in a lower incentive fee insulating investors from those negative trends.
I'll now turn the call over to Ian to provide an update on the market and our investment portfolio.
Thanks, Erica and good morning, everyone. If you turn to slide 9 you can see additional details on the investment activity that Eric mentioned net new middle market investments totaled 26 million with gross fundings of $241 million, partially offset by sales and repayments of $215 million.
New middle market investments included 21, new platform investments totaling $187 million.
$54 million of follow on investments and delayed draw term loan fundings.
We also had $24 million of new cross platform investments in the quarter.
We continue to believe portfolio prepayments will remain elevated across the market.
And in the second quarter Barings BDC began to see a slight increase in prepayments along with the associated associated fee income acceleration.
Of our $242 million in sales and prepayments $66 million was associated with full repayments. This quarter $20 million was from partial pay downs and the remaining $156 million with sales to our joint venture.
As we outlined last quarter joint venture sales enable us to increase portfolio diversification, while maintaining a prudent leverage profile at barings BDC.
Slide 10 updates of data we show you each quarter on middle market spreads across the capital structure.
We saw continued tightening in the second quarter across the board the single B liquid spreads remain inside middle market levels, putting further pressure on middle market spreads.
This broad market competition as evidenced in unit tranche transactions.
Allative to first lien and second lien loan executions.
Turn to slide 11.
Traditionally unitranche executions provide a level of premium pricing when compared to a first lien second lien structures as a 1 stop financing solution provides private equity sponsors with ease of execution.
Today, the spread differential between a unit tranche transaction.
In a traditional first lien second lien execution is approaching all time tights. Furthermore, first lien pricing is tightening at both the upper and lower ends of the middle market.
A bridge of our investment portfolio from March 31 to June 30, as shown on slide 12.
Both realized and unrealized appreciation drove an increase in portfolio value with roughly $4 million of appreciation associated with increased values of MVC investments.
A breakdown of the key components of our investment portfolio at June 30th is on slide 13.
As we have discussed in the past the goal of this slide is to provide details on the 3 key components of our portfolio, which are now middle market portfolio.
Legacy MVC capital portfolio, and our cross platform investments the.
The middle market portfolio remains our core focus it makes up to 75% of our portfolio in terms of total investments and commitments and 69% of our portfolio in terms of revenue contribution.
This portfolio is comprised of 124 portfolio companies.
Geographic diversification across the U S Europe and Asia Pacific regions.
Underlying yields on our middle market investment portfolio of $6.
6 remain reflective of our boring is beautiful approach to credit.
And this serves us well in periods of potential market for us.
For our middle market portfolio weighted average first lien leverage was 5.1 times a slight improvement from what we reported last quarter.
In addition to our middle market exposure, we continue to draw upon barings' wide investment frame of reference and complement our core portfolio was 16 investments in the legacy MVC capital portfolio, and 23 cross platform investments, which have yields at fair value of 13, 5% and 8.2.
2% respectively.
We had no non accrual investments at quarter end and no material modifications to the cash payment terms of our debt investments.
Our total investment portfolio. Excluding short term investments is now made up of 78% first lien assets generally consistent with the 81% at the end of the first quarter.
Slide 14 provides a further breakdown of the portfolio from a seniority perspective.
The core barings originated portfolio, which makes up 89% of our funded investments.
87% first lien this is down from 91% last quarter driven by further investments in our joint ventures that continue to enhance portfolio diversification.
The MVC portfolio is comprised primarily of equity.
Lean and mezzanine debt investments, which brings the first lien component of the total portfolio down to 78%.
With regard to the MVC assets, we continue to drive towards the exit of non core lower yielding equity investments and increasing core earnings by redeploying this capital into higher yielding assets.
Our top 10 investments are shown on slide 15, our largest investment is 3.1 percentage of total portfolio in the top 10 investments represent 19, 1% of the total portfolio. The 2 largest investments were acquired as part of the MPC capital transaction.
Remember that these investments are supported by the credit support agreement in place with Barings LLC.
Reducing potential downside risk the <unk>.
Overall portfolio remains diverse from.
Industry perspective, as well with 163 investments spread across 29 industries.
I'll summarize by saying that while both the market and portfolio company performance have remained strong there are often periods in the middle market, where increased confidence drives complacency with.
With capital inflows into the leveraged loan asset classes nearing all time highs and default and loss levels approaching lows it becomes easy to assume the buoyant credit markets will last indefinitely.
They never do.
Active portfolio management, and staying ahead of issues remain vitally important and of compressing spread environment.
And in my years of experience the best mitigate to an elevated competitive market dynamic is increased choice among portfolio company and asset class.
Given the depth and breadth of the barings platform across many private asset classes.
We remain confident in our ability to deploy capital at attractive rates of return and strong risk profiles.
I'll now turn the call over to John to provide additional color on our financial results.
Thanks, Ian turning to slide 17, here's the full bridge of the 25% increase in NAV per share to $11.39 as of June 30th.
Our net investment income outpaced our dividend by <unk> <unk> per share net realized gains in our investment portfolio and foreign currency transactions drove an increase of 1 penny per share and net unrealized depreciation on our investment portfolio of foreign currency transactions and credit support agreement growth and increase of 22 per share additional details.
On this net unrealized depreciation are shown on slide 18.
The 22 cents per share of net unrealized depreciation, which equates to approximately $14 million included depreciation of approximately $4.2 million on our current middle market investment portfolio. This appreciation is further broken down by $4.2 million from lower spreads in the broader market from middle market debt.
<unk> and $1 million from improved credit across the portfolio.
Now that appreciation was offset by $1 million.
Depreciation attributable to the impact of the stronger dollar on our middle market investments held in foreign currencies.
Our cross platform investments, our total appreciation of approximately $3.6 million, while the legacy MDC portfolio saw total net appreciation of $4.3 million. This net appreciation for the legacy NBC portfolio was primarily driven by 2 equity positions that has improved post COVID-19.
Near the bottom of Slide 18, you can see that credit support agreement with Barings had unrealized depreciation of $2.3 million in the quarter.
Slides 19, and 20 show our income statement and balance sheets for the last 5 quarters as we've discussed our net investment income per share remained steady at 22 for the quarter driven by $2.6 million increase in total investment income higher interest income as well as an increase in accelerated OID on.
Repayments drove that increase the increase in total investment income was partially offset by higher interest and financing fees, which rose as a result of the increased borrowing levels as well as the higher interest costs associated with the full quarter of our February unsecured debt issuances in the second quarter also saw the payment of an insert.
To speak to the manager as pre incentive fee net investment income exceeded our 8% hurdle right.
Now from a balance sheet perspective on slide 20 total debt to equity was 1.4 times at June 30, although this levels artificially high given the timing of certain asset sales and was 114 times debt to equity after adjusting for cash cash equivalent and an unsettled true.
<unk> actions.
Slide 21.
You can see how our funding mix price to our asset mix, both in terms of seniority and asset class compared to the end of 2020, our reliance on senior debt decreased as well.
As we have continued to diversified our balance sheet to match our diverse portfolio of assets.
Details on each of our borrowings are shown on slide 22, which shows the evolution of our debt profile from over the last 3 plus quarters. We continue to have an additional commitment to raise up to $25 million of unsecured debt and have available borrowing capacity under our $800 million senior secured credit facility.
Jumping to slide 23, you can see the potential impact of this of using this available liquidity on our net leverage including the impact of funding our unused capital commitments Barings BDC currently has $125 million of delayed draw term loan commitments to our portfolio of companies as well as $39.
5 million of remaining commitments to our joint venture investments. This table shows how we have the available capacity to meet the entirety of these commitments if called upon while maintaining cushion against our regulatory leverage limit.
Slide 24 updates, our paid and announced dividends since barings took over as the advisor to the BDC as Eric mentioned, we announced yesterday that our third quarter 2021 dividend will be 21 per share an increase of a penny per share compared to the second quarter turn with.
Now to slide 26, which shows a graphical depiction of relative value across the triple B double B and single B asset classes. We continue to study this concept to evaluate relative value opportunities that can exist for investors at different levels of credit risk and also remind ourselves how the value of.
Choice across markets provides a meaningful benefit to BDC investors. This translates into the actual results shown on slide 27, which outlined the premium spread R&R investments in the quarter relative to liquid credit benchmarks as we seek attractive illiquidity income.
<unk> premium spread.
Barings BDC deployed 264 million and an all in spread of 811 basis points, which represented a 303 basis point spread premium to comparable liquid market indices at the same risk profile diving deeper into our core middle market segment across Europe and.
North America, we average of 373 basis points spread relative to liquid market indices for cross platform investments the spread relative to liquid market indices was even greater at 700 basis points.
We continue to believe our ability to invest across platforms and generate excess shareholder returns via illiquidity and complexity premiums is a key differentiator for barings BDC in this upcoming cycle and I'll wrap up our prepared remarks with slide 28, and this summarizes our new investment activity so far during.
The third quarter of 2010.
21, and our investment pipeline.
Pace of new investments remained steady compared to the last 2 quarters, and we had approximately $186 million of new commitments of which $150 million has been closed and funded.
All of these new commitments, 36% are in first lien senior secured loans and 63% are in cross platform with 18% also in European or Asia Pacific originations. The weighted average origination margin are deemed 3 with 7.5% and we also funded approximately.
$18 million of previously committed delayed draw term loans.
Current Barings global private finance investment pipeline is approximately $2.1 billion on a probability weighted basis and is predominantly weighted towards first lien senior secured investments as a reminder, this pipeline is estimated based on expected closing rates for all deals in our pipeline.
1 specific highlight I'd like to call to your attention to is Darren BDC purchase of an equity stake in eclipse business capital, formerly Insein up business credit our market, leading capital solutions provider.
Focus primarily on asset based loans on July 8 barings BDC, along with massmutual. Other affiliated funds Barings BDC invested approximately $89 million in common and preferred equity and expect to receive a quarterly dividend distribution on its investment this.
Investment provides strategic benefit to barings BDC investors for a few reasons first it offers investment expertise in and exposure to an attractive vertical and leveraged finance non ABL lending non bank ABL lending, which continues to benefit.
From increased and sustained commercial bank regulation.
Second this investment in this asset class for that matter offers attractive Austin, often positively asymmetric risk adjusted returns our target distribution on the 89 million dollar investment is expected to meet and exceed barings BDC as long term dividend distribution target of <unk>.
8% on net asset value and finally this investment further enhances barings BDC already very wide frame of investment reference, which we believe is the key to navigating the competitive markets and so with that operator in block we will gladly open the line for questions.
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1 moment, please while we poll for questions.
Our first question today is from Kyle Joseph of Jefferies. Please proceed with your question.
Hey, good morning, guys. Thanks for taking my question and congratulations on another good quarter.
John come back probably started off here, it's actually where you ended.
Exciting announcement on the ABL lender acquisition can you just walk us through how you see that impacting the bvd fees add P&L, specifically kind of.
Revenue allocation, how are we going to see kind of heightened dividends going forward.
So Kyle yeah, what we'd outlined and I think it might be good to just give us an overall view of the asset class to our partner Brian How high is that you can expect from a revenue perspective for an additional income to flow in right. As this is the cash flow yielding equity in terms of distribution, but we also want to.
Is some conservatism in how we think about distributions right.
The goal here is to have a cash payment that matches our dividend distribution for BDC.
But as Brian outlined the Levered returns on strong ABL lending franchises can exceed that amount. So we're positively inclined to see revenue continue to grow right absent you know everything remaining the same across the rest of the investment portfolio. It's a strategic investment for US and then perhaps it would be worthwhile to get a sense from Brian as it were.
Lights to the Levered returns in the type of lending that takes place Bryan.
Sure good morning.
As John mentioned earlier, we view eclipses loan portfolio to have.
Attractive risk profile, where they are where they are lending at a discount to the hard asset value of the underlying portfolio companies.
And when you couple that strong risk profile with.
A combination of their attractive financing at the eclipse level and the underlying loan portfolio, having fees and spreads consistent with a non bank financing solution. So not your typical ABL that you would see from from a commercial bank.
ROA and dividend to the equity holders there can be very attractive and as John outlined in the slides 8% plus.
Expectations.
To the underlying shareholders.
Yeah.
Got it very helpful. Thanks, John and Brian.
1 follow up from me I know you guys mentioned.
Net prepayments picked up but I mean going through the slides it really looks like the majority of sales and repayments in the quarter were kinda instigated by you guys. You know how have you been able to manage prepayment activity and in what seems like a relatively hot market.
Hey, John you want me to start with from Yeah, Yeah, that's actually perfect. Yeah, I'll say from the sales standpoint right.
Got it right day, the vast majority of the sales and repayments were sales to the joint venture, which are primarily just a function of us enhancing diversification and so for the prepayment question go straight to Ian on the prepayments on the portfolio.
Yeah, So Kyle.
Basically as you look at our market, especially a market.
We're in right now where we are now I think in the third quarter of <unk>.
Significant volume and activity and this as we've indicated a lot of capital has come into the market.
More capital than ever.
Obviously market gets incredibly frothy.
And also underlying all of that we have.
A change in the administration and probably a lot of people thinking about potential tax changes.
Occurring on the horizon, and that's a catalyst to activity and so when we look at.
Prepayments today unlike.
Early in my career when a lot of it was moving when sponsors exit deals that moved into ipos or sale to strategics. Most of the prepayments are going to other sponsors. So it's a sponsor to sponsor LBO.
And so we have a lot of strat.
Strategies around retaining good assets connecting with management teams. So that we can at.
At least have their input in the sale process that they'd like us to continue to be there their agent.
And so as long as the we like the sponsor and we underwrite the sponsor and we're okay financing that deal for the new sponsor and we're comfortable with the terms and the documentation and structure, we're going to do everything we can to retain that asset.
Key strategy in a market like like like this.
The next question is from Robert Dodd of Raymond James. Please proceed with your question.
Hi, guys.
The competitive environment.
John.
Slide 11, when we look at that.
The EBITDA range, where the compression as you mentioned spreads have been compressing, but when we look at the 'twenty to 'twenty 9 range, which is solidly your target range and Youll average EBITDA spreads actually widen slightly this quarter versus last quarter.
Which obviously you guys kind of comfort of what we're seeing broadly in the market I mean can you give us any color on.
Why that's <unk>.
Happening in kind of your core market is it just defensively more protected because of the EBITDA range that you're kind of targeting.
Any color on how that market is kind of spread wise outperforming the others. Yes. So great question, Robert and look I mean, this is something that has actually been.
And in place for a while and it's 1 of the reasons from a relative value perspective, we like this segment of the middle market I mean, the problem with the lower end of the middle market is theres just so many players in that space everyone's trying to put money to work.
And so.
When you look at spread compression at that lower end it just gets.
Insane because of so many players in that market just trying to put money out the door I think on the larger and what you see is.
And again people that we typically compete with.
Do move up market I would say the people that are in the middle of the middle market.
We compete with aren't really doing this the low end of the middle market right. So, it's really more middle and up and I think a lot of those platforms.
Again, our very focused because they've raised so much capital to <unk>.
Put as much money out the door as possible and so theyre kind of moving up market.
We're starting to see the free.
The syndicated market do some interesting things recently with this <unk>.
Compliance service compliance transaction that was a deep unit tranche with delayed draw term loan attached to it and so that market has just gotten really crazy competitive.
And so youre seeing just way more compression on the upper end of the middle market the middle of the middle market not to say that people don't want.
Do deals in that market, but that's where we really focus all of our energy and try to create that beachhead there.
And you've got to be able to go in and write check sizes of.
3 to 400 million to play in that space.
Our ability to do that really kind of blocks or the lower end and again on the upper end I think a lot of those shops are looking to put more dollars out the door.
Great. Thank you for that.
Then 1 more if I can I mean, when we look at your cash see Thompson with it now.
Clips I would presume eclipses the nonqualified assets.
But I might be wrong on that.
Yes, I mean, you still got a lot of room potentially in.
In the non qualified.
Bucket is what it looks like to me that correct me if I'm wrong I mean, any also I mean, obviously it touches.
Net addition, ABL different from.
That's the value the market.
Diversifying.
Sources of income from an all good things I mean, the other areas youre looking at to potentially take advantage of the.
The non qualified bucket even more.
I'd say right now you're seeing kind of the the use of our wide frame of reference as a great complement to Ian and and our European counterparts strategy in the middle of the middle market.
No no really targeted plans to do anything different when when the options that are presented to us we will execute on them, but Robert you know if you think of the break out we provided a pretty wide diversification already across a number of asset classes, where barings AR.
As well as our parent have a high degree of expertise.
Very comfortable with where we sit today it doesn't mean that new 1 can't come across but at this moment in time, we feel that the asset mix here is attractive to navigate what we believed to be an increasingly competitive marketplace.
The next question is from Casey Alexander of Compass point. Please proceed with your question.
Hi, good morning.
Can you discuss the credit history of Eclipse.
So long term I will I'll give some overall views, but it would be realized losses.
15 basis points, that's going to be.
That's going to be emblematic of the asset class that one's in Casey.
Simply because when you're lending inside of net orderly liquidation value you can find that there was quite a bit of margin to protect yourself in the event that a force liquidation needs to occur to receive your principal back.
But very superlative in also.
They are a demonstration of the team that we've partnered with here I hadn't seen it now rebranded eclipse as a as a fantastic addition, and longtime investor day and asset based lending.
Is there a pocket of business industries that they specialize in a lot of these a BLS our retail heavy where does eclipse fit in terms of the profile of the people they lend to.
I'd argue that Casey, it's it's broad it's it would be broad that you would expect from a team. That's also had a strong pedigree in commercial banking, but there can be certain pockets of expertise, whether it's going to be e-commerce or retail or some heavy more we'll call that a heavier industries.
Require a distinct or certain amount of capital. It runs the it runs the gamut as you would expect anyone inside ABL to do to have a wide swath of expertise, but those 2 industries stick.
Stick out in my mind, and you would find that asset based loans right, depending on kind of how commercial banks are approaching <unk>.
Various injury streets et cetera, it can kind of ebb and flow and create additional pockets of industry exposure.
The next question is from Finian O'shea of Wells Fargo. Please proceed with your question.
Yeah.
Yeah.
Hi, everyone. Good morning.
A question on the sell downs of the JV I think you mentioned.
$100.158 million or so.
Yeah. He can you describe if that was like on new.
New origination or your.
Prevailing.
Credit book, and then sort of what was the thinking.
On that.
Yeah, So primarily new origination and remember we always think about.
Our partners in the joint venture we're here to complement diversification versus the use of other joint ventures in the BDC space to just heavily lever assets to drive return in distribution right. So the the refresh or is this just this BDC. This joint venture is not designed to solve a yield problem at the BDC. It's.
And to enhance diversification to other asset classes.
That we at Barings have expertise in and so primarily you can see the transfer is down to the joint venture or our European loans, right, which are considered non qualified on our on the BDC balance sheet.
And there was an interest just given our strength of lending in Europe for those assets to be owned in a joint venture. So that's the primary kind of I'll say impetus behind the transfers, it's new originations right because we always believe that it's more importantly, instead of having 1 loan for $20 million of the BDC balance sheets better to have 2 per 10, 2 at 10.
And you can continue to see that occurring but again J D. J D. Here, it's about diversification and that's our focus as opposed to effectively enhancing yield is biggest 1 can to solve a yield problem at the BDC.
Okay. Thanks, that's helpful. And then can you talk about it.
There's some.
Language on.
Consumer consumer finance.
Unsecured consumer finance and the and the whack a mole.
Vehicle can you describe that strategy.
Yeah sure. So these are going to be small allocations, but again, our focus on the wide frame of reference kind of benefits from Barings LLC is very very wide and our parents very very wide investment frame of reference so in certain segments Youll find that there is unique access to consumer deal flow certainly not in.
In large amounts and you can see that the whack a mole joint venture itself is relatively small and also has attracted third party capital, but our focus would be on certain categories, where are our frame of reference allows us to invest.
Alongside a number of origination units that are accessing niche areas of the market.
And in some cases it can be.
Hi to vocational school style lending range as it relates to coding coding schools or.
Areas, where certainly they are very low loss rates and very attractive investments.
And that can be driven just by the fact that our funnel right and barings relationships with a number of originators, both commercial and consumer.
<unk> is very very attractive given what we offer them and how they want to partner with us. So short answer, but it's also a small investment but our focus here is again, making sure that we have a particularly wide train because both consumer and commercial risks can work together provided that you don't over.
Accentuator overemphasize, 1 or another.
Yeah.
There are no additional questions at this time I would like to turn the call back to Eric Lloyd for closing remarks.
I just want to thank everybody for joining us I know, it's a busy time for many people here on the phone at the early Friday morning. So I just hope everybody is staying healthy out there and staying positive and look forward to senior body hopefully in the near future. So everybody take care of yourself and thanks for dialing in.
This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.
[music].
Okay.