SOLAR CAPITAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)
June 30, 2019
(in
thousands, except share amounts)
On November 22, 2017, we issued $75,000 in aggregate principal amount of publicly
registered unsecured senior notes due 2023 (the 2023 Unsecured Notes) for net proceeds of $73,846. Interest on the 2023 Unsecured Notes is paid semi-annually on January 20 and July 20, at a fixed rate of 4.50% per year,
commencing on January 20, 2018. The 2023 Unsecured Notes mature on January 20, 2023.
On February 15, 2017, the Company
closed a private offering of $100,000 of additional 2022 Unsecured Notes with a fixed interest rate of 4.60% and a maturity date of May 8, 2022. Interest on the 2022 Unsecured Notes is due semi-annually on May 8 and November 8. The
2022 Unsecured Notes were issued in a private placement only to qualified institutional buyers.
On November 8, 2016, the Company
closed a private offering of $50,000 of the 2022 Unsecured Notes with a fixed interest rate of 4.40% and a maturity date of May 8, 2022. Interest on the 2022 Unsecured Notes is due semi-annually on May 8 and November 8. The 2022
Unsecured Notes were issued in a private placement only to qualified institutional buyers.
Revolving and Term Loan Facilities
On September 30, 2016, the Company entered into a second Credit Facility amendment. Post amendment, the Credit Facility was composed of
$505,000 of revolving credit and $50,000 of term loans. Borrowings generally bear interest at a rate per annum equal to the base rate plus a range of
2.00-2.25%
or the alternate base rate plus
1.00%-1.25%.
The Credit Facility has no LIBOR floor requirement. The Credit Facility matures in September 2021 and includes ratable amortization in the final year. The Credit Facility may be increased up to $800,000
with additional new lenders or an increase in commitments from current lenders. The Credit Facility contains certain customary affirmative and negative covenants and events of default. In addition, the Credit Facility contains certain financial
covenants that among other things, requires the Company to maintain a minimum shareholders equity and a minimum asset coverage ratio. The Company also pays issuers of funded term loans quarterly in arrears a commitment fee at the rate of
0.25% per annum on the average daily outstanding balance. On February 23, 2017, the Company prepaid its two
non-extending
lenders and terminated their commitments, reducing total outstanding
revolving credit commitments by $110,000 to $395,000. On April 30, 2018, the revolving credit commitments under the Companys Credit Facility were expanded by $50,000 from $395,000 to $445,000 and on July 13, 2018, revolving credit
commitments were further expanded by $35,000 to $480,000. On November 21, 2018, we entered into Amendment No. 3 to the Credit Facility which, among other things, reduced the asset coverage covenant in the Credit Facility from 200% to 150%
and made certain related changes to the borrowing base calculations. At June 30, 2019, outstanding USD equivalent borrowings under the Credit Facility totaled $184,000, composed of $134,000 of revolving credit and $50,000 of term loans.
On May 31, 2019, the Company as transferor and SSLP
2016-1,
LLC, a wholly-owned subsidiary of the
Company, as borrower entered into amendment number two to the $200,000 SSLP Facility with Wells Fargo Bank, NA acting as administrative agent. The Company acts as servicer under the SSLP Facility. The SSLP Facility is scheduled to mature on
May 31, 2024. The SSLP Facility generally bears interest at a rate of LIBOR plus 2.25%. The Company and SSLP
2016-1,
LLC, as applicable, have made certain customary representations and warranties, and are
required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. The SSLP Facility also includes usual and customary events of default for credit
facilities of this nature. There were $103,186 of borrowings outstanding as of June 30, 2019.
On September 26, 2018, NEFPASS
SPV LLC, a newly formed wholly-owned subsidiary of NEFPASS LLC, as borrower entered into a $50,000 senior secured revolving credit facility (the NEFPASS Facility) with
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