First, they are still below critical mass and have an expense structure that is too high. That said, if you back out the incentive fee expense, assume they can max out the SBIC debentures, and refi the Dearborn revolver at some point you can get to maybe 55 cents of NII, which could support a dividend.
But second, they still appear to me to be a year or more away from a regular dividend because of point one.
Third, I do not think the environment for a significant expansion of the loan book is that great right now. They said as much on the call. Both absolute rates and spreads have come in for subordinated loans.
Fourth, I still think we will have more 10% or so pullback in the broader market ahead of us.
Put it all together and I would like to buy at $15 or so rather than the current $17.