SOLAR CAPITAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
December 31, 2018
(in thousands, except share amounts)
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twenty-five dollars per share and multiplying the result by one thousand to determine a unit price per thousand consistent with Asset Coverage Per Unit. The average market value for the fiscal
2018, 2017, 2016, 2015, 2014, 2013 and 2012 periods was N/A, N/A, $100,175, $98,196, $94,301, $93,392, and $92,302, respectively.
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Note 10. Crystal Financial LLC
On December 28, 2012, we completed the acquisition of Crystal Capital Financial Holdings LLC (Crystal Financial), a commercial finance company focused on providing asset-based and other
secured financing solutions (the Crystal Acquisition). We invested $275,000 in cash to effect the Crystal Acquisition. Crystal Financial owned approximately 98% of the outstanding ownership interest in Crystal Financial LLC. The
remaining financial interest was held by various employees of Crystal Financial LLC, through their investment in Crystal Management LP. Crystal Financial LLC had a diversified portfolio of 23 loans having a total par value of approximately $400,000
at November 30, 2012 and a $275,000 committed revolving credit facility. On July 28, 2016, the Company purchased Crystal Management LPs approximately 2% equity interest in Crystal Financial LLC for approximately $5,737. Upon the
closing of this transaction, the Company holds 100% of the equity interest in Crystal Financial LLC. On September 30, 2016, Crystal Capital Financial Holdings LLC was dissolved. On December 20, 2018, the revolving credit facility was
expanded to $330,000.
As of December 31, 2018 Crystal Financial LLC had 31 funded commitments to 26 different issuers
with a total par value of approximately $418,680 on total assets of $486,420. As of December 31, 2017 Crystal Financial LLC had 27 funded commitments to 23 different issuers with a total par value of approximately $300,876 on total assets of
$448,465. As of December 31, 2018 and December 31, 2017, the largest loan outstanding totaled $37,500 and $35,954, respectively. For the same periods, the average exposure per issuer was $16,103 and $13,082, respectively. Crystal
Financial LLCs credit facility, which is
non-recourse
to Solar Capital, had approximately $205,990 and $176,454 of borrowings outstanding at December 31, 2018 and December 31, 2017,
respectively. For the years ended December 31, 2018, 2017 and 2016, Crystal Financial LLC had net income of $33,026, $20,391 and $34,099, respectively, on gross income of $58,758, $52,746 and $69,442, respectively. Due to timing and
non-cash
items, there may be material differences between GAAP net income and cash available for distributions. Crystal Financial LLCs consolidated financial statements for the fiscal years ended
December 31, 2018 and December 31, 2017 are attached as an exhibit to this annual report on Form
10-K.
Note 11. Stock Repurchase Programs
On July 31, 2013, the Board
authorized a program for the purpose of repurchasing up to $100,000 of the Companys common stock. Under the repurchase program, the Company could have, but was not obligated to, repurchase its outstanding common stock in the open market from
time to time provided that the Company complied with the prohibitions under its Insider Trading Policies and Procedures and the guidelines specified in Rules
10b-18
and
10b-5
under the Securities Exchange Act of 1934, as amended, including certain price, market volume and timing constraints. On December 5, 2013, the Board extended the repurchase program to be in place
until the earlier of July 31, 2014 or until $100,000 of the Companys outstanding shares of common stock had been repurchased. On July 31, 2014, the Companys stock repurchase program expired. During the fiscal year ended
December 31, 2014, the Company repurchased 1,779,033 shares at an average price of approximately $21.97 per share, inclusive of commissions. The total dollar amount of shares repurchased in that period was $39,078. During the year ended
December 31, 2013, the Company repurchased 796,418 shares at an average price of approximately $21.98 per share, inclusive of commissions, for a total dollar amount of $17,508.
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