The Company’s Board of Directors declared a monthly distribution for August of $0.1175 per share payable on August 31, 2018 to stockholders of record on August 23, 2018. Tax characteristics of all distributions will be reported to shareholders on Form 1099 after the end of the calendar year.
Comprehensive Investment portfolio* fair value:
Number of portfolio companies*: 171
Net asset value per share:
Comprehensive Portfolio Activity** for the Quarter Ended
Investments made during the quarter:
Investments prepaid or sold during the quarter:
Operating Results for the Quarter Ended
Net investment income:
Net investment income per share:
Net realized and unrealized loss:
Net increase in net assets from operations:
Earnings per share:
* The Comprehensive Investment Portfolio is comprised of Solar Senior Capital Ltd.’s investment portfolio, Gemino Healthcare Finance’s (“Gemino”) full portfolio, North Mill Capital LLC’s (“NorthMill”) full portfolio, and the senior secured loans held by the First Lien Loan Program (“FLLP”) attributable to the Company and excludes the Company’s fair value of its equity interest in Gemino, NorthMill, and FLLP.
** Includes investment activity through Gemino, NorthMill, and FLLP, attributable to the Company.
“We are pleased with Solar Senior Capital’s portfolio growth and operating performance in Q2 2018. Overall, the financial health of our portfolio companies remains sound,” said
Conference Call and Webcast
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Comprehensive Investment Portfolio
During the quarter ended
The investment activity of our Comprehensive Investment Portfolio for the quarter ended
|Total Portfolio Activity(1) – Q2 2018
(1) Total Portfolio Activity includes gross originations/repayments across each business unit, attributable to Solar Senior.
(2) Includes cash flow 1st lien senior secured loans on the Company’s balance sheet and in FLLP.
(3) Includes asset-based 1st lien senior secured loans at NorthMill.
(4) Includes healthcare asset-based 1st lien senior secured loans at Gemino.
Our Comprehensive Investment Portfolio composition by business unit at
|Comprehensive Investment Portfolio
(at fair value)
|First Lien Senior Secured Loans|
|Cash Flow 1st Lien Senior Secured Loans(1)||$417.2||59.2||%||7.8||%|
|Traditional Asset-Based 1st Lien Senior Secured Loans(2) (NorthMill)||$163.0||23.1||%||13.3||%|
|Healthcare Asset-Based 1st Lien Senior Secured Loans(3) (Gemino)||$111.3||15.8||%||10.7||%|
|Total First Lien Senior Secured Loans||$691.5||98.1||%|
|Cash Flow 2nd Lien Senior Secured Loans||$13.2||1.9||%|
|Equity and Equity-like Securities(4)||$0.1||<0.1||%|
|Total Comprehensive Investment Portfolio||$704.8||100||%||9.6||%|
|Floating Rate Investments(5)||$661.3||93.8||%|
(1) Includes 1st lien senior secured cash flow loans on the Company’s balance sheet and in FLLP.
(2) Includes NorthMill’s full asset-based funded loan portfolio, all of which are 1st lien senior secured loans.
(3) Includes Gemino’s full healthcare asset-based funded loan portfolio, all of which are 1st lien senior secured loans.
(4) Excludes the Company’s equity investments in NorthMill, Gemino and FLLP, which distribute quarterly dividends to the Company.
(5) Floating rate investments calculated as a percent of the Company’s Comprehensive Investment Portfolio (excludes equity)
The Comprehensive Investment Portfolio is diversified across 171 unique borrowers with average issuer exposure of
Over 98.0% of the Comprehensive Investment Portfolio is invested in first lien senior secured cash flow and asset-based loans. Second lien senior secured cash flow loans have been reduced to 1.9% of the portfolio.
The Company puts its largest emphasis on risk control and credit performance. On a quarterly basis, or more frequently if deemed necessary, the Company formally rates each portfolio investment on a scale of one to four, with one representing the least amount of risk.
|Internal Investment Rating||Investments at Fair Value||% of Total Portfolio|
Solar Senior Capital Ltd.’s Results of Operations for the Quarter Ended
For the quarters ended
Our gross investment income by business unit is broken out below.
|Investment Income Contribution by Business Unit(1)
(1) Includes income/fees from cash flow loans on balance sheet and distributions from FLLP, and distributions from
Net expenses totaled
Net Investment Income
Net investment income totaled
Net Realized and Unrealized Gain (Loss)
Net realized and unrealized gain (loss) for the quarters ended
Net Increase in Net Assets Resulting From Operations
For the quarters ended
Liquidity and Capital Resources
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except share amounts)
|June 30, 2018 (unaudited)
||December 31, 2017|
|Investments at fair value:|
|Companies less than 5% owned (cost: $345,598 and $289,848, respectively)||$||342,240||$||283,983|
|Companies 5% to 25% owned (cost: $3,866 and $3,625, respectively)||2,727||2,213|
|Companies more than 25% owned (cost: $122,448 and $121,298, respectively)||125,234||121,885|
|Cash equivalents (cost: $59,932 and $104,874, respectively)||59,932||104,874|
|Receivable for investments sold||—||508|
|Prepaid expenses and other assets||187||277|
|Credit facility ($185,900 and $124,200 face amounts, respectively, reported net of unamortized debt issuance costs of $1,737 and $0, respectively)||$||184,163||$||124,200|
|Payable for investments and cash equivalents purchased||86,028||122,110|
|Management fee payable||1,145||999|
|Performance-based incentive fee payable||54||374|
|Administrative services expense payable||467||944|
|Other liabilities and accrued expenses||1,351||898|
|Common stock, par value $0.01 per share, 200,000,000 and 200,000,000 common shares authorized, respectively, and 16,040,485 and 16,036,730 issued and outstanding, respectively||$||160||$||160|
|Paid-in capital in excess of par||287,906||287,841|
|Distributions in excess of net investment income||(5,336||)||(5,336||)|
|Accumulated net realized loss||(11,095||)||(5,844||)|
|Net unrealized depreciation||(1,711||)||(6,690||)|
|Total net assets.||$||269,924||$||270,131|
|Net Asset Value Per Share||$||16.83||$||16.84|
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except share amounts)
|Three months ended|
|June 30, 2018
||June 30, 2017|
|Companies less than 5% owned||$||6,012||$||5,610|
|Companies 5% to 25% owned||90||52|
|Companies more than 25% owned||3,250||1,923|
|Companies less than 5% owned||78||54|
|Companies 5% to 25% owned||23||—|
|Companies more than 25% owned||18||19|
|Total investment income||9,471||7,658|
|Performance-based incentive fees||491||122|
|Interest and other credit facility expenses||1,806||896|
|Administrative services expense||387||367|
|Other general and administrative expenses||425||477|
|Management fees waived||—||(692||)|
|Performance-based incentive fees waived||(437||)||(122||)|
|Net investment income||$||5,654||$||5,651|
|REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS:|
|Net realized gain (loss) on investments and cash equivalents (companies less than 5% owned)||$||(5,244||)||$||38|
|Net change in unrealized gain (loss) on investments and cash equivalents:|
|Companies less than 5% owned||3,948||21|
|Companies 5% to 25% owned||166||—|
|Companies more than 25% owned||995||(481||)|
|Net change in unrealized gain (loss) on investments and cash equivalents||5,109||(460||)|
|Net realized and unrealized loss on investments and cash equivalents||(135||)||(422||)|
|NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS||$||5,519||$||5,229|
|EARNINGS PER SHARE||$||0.34||$||0.33|
Solar Senior Capital Ltd. is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. A specialty finance company with expertise in several niche markets, the Company primarily invests directly and indirectly in leveraged, U. S. middle market companies primarily in the form of cash flow first lien senior secured debt instruments and asset-based loans including senior secured loans collateralized on a first lien basis primarily by current assets.
Statements included herein may constitute “forward-looking statements,” which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the
Source: Solar Senior Capital Ltd.