As we alluded to in the past two monthly news about us, we are also continuing to work on an enhanced solution to the senior only product with a low cost of capital from an overseas deep-pocketed lending partner. We continue to make significant progress that I have nothing final to announce as the yet.
Our earnings were in the middle range of previously issued guidance. Well, I’m personally disappointed that we are still shy of the $0.32 dividend for the quarter. I’m hopeful that we’ll be able to close the gap substantially in the second half of the calendar year. We anticipate that part of the additional earnings will come from better matching our targeted leverage of 0.6 times debt-to-equity, a part will come from better utilization of our credit lines and part of it will come from more closely matching our 75% first lien and 25% second lien targets.
We continue to move into larger securities, which we believe are inherently safer, with a typical deal, having EBITDA of $10 to $30 million. We believe that our high first lien exposure coupled with investing in larger and more stable portfolio of companies and a robust diligence and portfolio management process will result in lower losses should the economy pull back again. While we’ve added substantially to our team this year, we recently lost our Co-CIO Chad Blakeman. I’d like to thank Chad for helping to lead several institution initiatives at Fifth Street. I wish him continued success.
And I also want to congratulate Ivelin, on his appointment of Chief Investment Officer. Ivelin has been with Fifth Street since 2005, he is one of the three partners of the investment adviser. Ivelin truly represents the discipline, work ethics and passion that drives us to succeed on behalf of our shareholders.
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