Branford Castle’s John K. Castle on new investments European spillover.
Speaker1: How have the credit market had an impact on new investments for Branford Castle?
Speaker2: We currently have two businesses under a letter of intent. Unlike a few years ago when it was very difficult to get credit, we’ve been finding that it’s reasonably easy to get credit these days or a certain number of senior bankers that are interested in both kinda deals that were looking at, and then there’s a plenty of subordinated capital out there in the market right now for the deals that were looking at. I would say that one of the advantages for both of the companies that we have on the letter is that they’re both asset intensive, so that really helps with getting a senior loan. However, we are also pretty aware of the cash flow landing environment for senior landers to be pretty frothy as well.
Speaker1: And amidst in every evolving political environment as well as economic turmoil. Are there any other challenges that you’re seeing right now?
Speaker2: There’s certainly a lot of uncertainty in the market right now. Europe is a big issue for a lot of people as stock market drops 700 points in the last number of days. There are a lot of people out there who are wondering whether the issues in Europe are gonna spill over to the United States. I’m pretty optimistic about the United States. Generally, I think that we’ve pretty solid footing our portfolio companies are doing quite well. Usually, there’s gonna be a downturn we can usually pick that up pretty quickly. If Europe spills over negatively to the United States, there will be an impact. Earnings will drop for some companies and you might expect to see a little bit of a slowdown in the market, but right now, so far so good.