SLR Investment Corp. (NASDAQ: SLRC) (the “Company” or “SLRC”),
today reported net investment income of $13.5 million, or
$0.32 per share, for the first quarter of 2022. Excluding one-time
expenses relating to the merger with SLR Senior Investment Corp.
(“SUNS”), net investment income per average share would have been
$0.35 for the quarter ended March 31, 2022. Please see
reconciliation table in the discussion of our results of operations
for the quarter.
At March 31, 2022, net asset value (NAV) was
$19.56 per share.
Beginning in April 2022, after the closing of
the merger with SUNS, SLRC adjusted the timing of its distributions
from quarterly to monthly. The Company paid a monthly distribution
of $0.136667 per share on May 3, 2022 to stockholders of record as
of April 21, 2022 and the Company’s Board of Directors (the
“Board”) declared a monthly distribution of $0.136667 per
share payable on June 2, 2022 to stockholders of record as
of May 19, 2022. The specific tax characteristics of each
distribution will be reported to stockholders on Form 1099 after
the end of the calendar year.
Since the merger with SUNS closed on April 1,
2022, except for certain pro forma information set forth in this
press release, SLRC will report financial and operating results of
the combined company starting with the second quarter of
2022.
HIGHLIGHTS:
At March 31, 2022:
Comprehensive Investment Portfolio*
fair value: $2.0 billionNumber of portfolio companies: >600Net
assets: $826.4 millionNet asset value per share: $19.56Net
debt-to-equity: 0.98xAvailable capital**: approximately $765
million, subject to borrowing base availability
Comprehensive Investment Portfolio Activity*** for the
Quarter Ended March 31, 2022:
Investments made during the quarter:
$173.9 millionInvestments prepaid and sold during the quarter:
$204.6 million
Operating Results for the Quarter Ended March 31,
2022:
Net investment income: $13.5
millionNet investment income per share: $0.32Net realized and
unrealized loss: $12.0 millionNet increase in net assets from
operations: $1.5 millionEarnings per share: $0.04
* The Comprehensive Investment Portfolio for the
quarter ended March 31, 2022 is comprised of SLRC’s investment
portfolio, SLR Credit Solutions’ (“SLR-CS”) full portfolio, SLR
Equipment Finance’s (“SLR-EF”) full portfolio and Kingsbridge
Holdings, LLC’s (“KBH”) full portfolio, and excludes the Company’s
fair value of the equity interests in SLR-CS, SLR-EF and KBH and
also excludes SLRC’s loan to KBH.
** Please see Liquidity and Capital Resources
below.
*** Comprehensive Portfolio Activity for the quarter ended March
31, 2022 includes gross originations through SLR-CS, SLR-EF and
KBH.
“Post quarter end, SLRC completed its merger
with SUNS. Given the expected benefits of the combination,
shareholders of both companies overwhelmingly voted in favor of the
transaction,” said Michael Gross, Co-CEO of SLR Investment Corp.
“Commencing in Q2, SLR Capital Partners, LLC voluntarily agreed to
a permanent 25 basis points reduction to SLRC’s base management
fee. SLRC’s board of directors has also approved the Company’s
adoption of a $50 million share repurchase program. In light of the
recent market volatility the share repurchase program provides
an additional tool for optimizing capital structure and enhancing
shareholder value.”
“Since Q3 2021, SLRC has issued $185 million of
unsecured fixed rate notes across two fundings at a blended coupon
of 3.2%. SLRC’s financing costs will be meaningfuly reduced when
higher priced notes mature during 2022.” said Bruce Spohler, Co-CEO
of SLR Investment Corp. “The combined SLRC/SUNS portfolio is highly
diversified across multiple lending strategies that are positioned
to fuel portfolio and earnings growth.”
Conference Call and Webcast
The Company will host an earnings conference
call and audio webcast at 10:00 a.m. (Eastern Time) on Wednesday,
May 4, 2022. All interested parties may participate in the
conference call by dialing (844) 889-7786 approximately 5-10
minutes prior to the call, international callers should dial (661)
378-9930. Participants should reference SLR Investment Corp. and
the participant passcode of 5479948 when prompted. A telephone
replay will be available until May 18, 2022 and can be accessed by
dialing (855) 859-2056 and using the passcode 5479948.
International callers should dial (404) 537-3406. This conference
call will also be broadcast live over the Internet and can be
accessed by all interested parties through SLR Investment’s
website, www.slrinvestmentcorp.com. To listen to the webcast,
please go to the Company's website prior to the start of the call
to register and download any necessary audio software. For those
who are not able to listen to the live broadcast, a replay of the
webcast will be available soon after the call.Comprehensive
Investment Portfolio
Investment Activity
During the three months ended March 31, 2022,
SLRC had total originations of $173.9 million and repayments and
amortization of $204.6 million across its five core business units:
cash flow, asset-based, equipment finance, life science lending,
and corporate leasing resulting in a net portfolio reduction of
$30.7 million to the comprehensive portfolio.
The investment activity of our Comprehensive
Investment Portfolio for the quarter ended March 31, 2022 was as
follows:
Comprehensive Investment Portfolio Activity
(1) – Q1 2022(in millions) |
Asset Class |
CashFlowLoans |
Asset-basedLoans /
SLR-CS(2) |
EquipmentFinancings
/SLR-EF(3) |
Life Science Loans |
CorporateLeasing(4) |
TotalPortfolioActivity |
Originations |
$2.5 |
$37.8 |
$20.8 |
$36.1 |
$76.7 |
$173.9 |
Repayments /Amortization |
$51.3 |
$10.0 |
$45.7 |
$16.2 |
$81.4 |
$204.6 |
Net PortfolioActivity |
($48.8) |
$27.8 |
($24.9) |
$19.9 |
($4.7) |
($30.7) |
|
(1) Total Portfolio Activity includes gross
originations/repayments across each business unit.(2) Includes
SLR-CS’s full portfolio and asset-based loans on the Company’s
balance sheet.(3) Includes SLR-EF’s full portfolio and equipment
financings on the Company’s balance sheet.(4) Includes gross
origination and repayment activity for KBH’s portfolio.
Portfolio Composition
SLRC's Comprehensive Investment Portfolio composition by
business unit at March 31, 2022 was as follows:
Comprehensive Investment Portfolio Composition(at
fair value) |
Amount |
|
Weighted AverageAsset
Yield(5) |
($mm) |
% |
|
|
|
|
|
|
|
Cash Flow Senior Secured Loans |
$372.4 |
18.3% |
|
8.2% |
|
Asset-Based Senior Secured
Loans / SLR-CS(1) |
$468.7 |
23.0% |
|
10.9% |
|
Equipment Senior Secured
Financings / SLR-EF(2) |
$316.5 |
15.5% |
|
9.2% |
|
Life Science Senior Secured
Loans |
$296.1 |
14.5% |
|
11.0%(6) |
|
Corporate Leasing / KBH(3) |
$573.2 |
28.1% |
|
10.2%(7) |
|
Total Senior Secured Loans |
$2,026.9 |
99.4% |
|
10.0% |
|
Equity
and Equity-like Securities |
$11.0 |
0.6% |
|
|
|
Total Comprehensive Investment Portfolio |
$2,037.9 |
100.0% |
|
|
|
Floating Rate Investments(4) |
$1,106.0 |
54.4% |
|
|
|
First Lien Senior Secured Loans |
$1,938.8 |
95.1% |
|
|
|
Second Lien Senior Secured Cash Flow Loans |
$29.2 |
1.4% |
|
|
|
Second Lien Senior Secured Asset-Based Loans |
$58.9 |
2.9% |
|
|
|
|
|
|
|
|
|
(1) Includes SLR-CS’ full portfolio and asset-based and
lender finance loans on the Company’s balance sheet and excludes
the Company’s equity investment in SLR-CS.(2) Includes
SLR-EF’s full portfolio and equipment financings on the Company’s
balance sheet and excludes the Company’s equity and debt
investments in SLR-EF.(3) Includes KBH’s full portfolio and
excludes the Company’s equity and debt investments in KBH.(4)
Floating rate investments calculated as a percent of the Company’s
income-producing Comprehensive Investment Portfolio. The majority
of fixed rate loans are associated with SLR-EF and leases
associated with KBH. Additionally, SLR-EF and KBH seek to
match-fund their fixed rate assets with fixed rate
liabilities.(5) The weighted average asset yield for cash
flow, asset-based and life science loans on balance sheet is based
on a yield to maturity calculation. The weighted average yield for
equipment financing and SLR-CS asset-based loans is calculated
based on the expected average life of a loan for each asset
class.(6) The weighted average asset level yield for life
science loans exclude the impact of success fees and/or
warrants and are calculated on cost basis.(7) Represents the
annualized Q1 2022 dividend yield at cost on SLRC’s equity
investment in KBH.
The Comprehensive Investment Portfolio is
diversified across over 600 unique borrowers in over 80 industries
and with an average exposure of $3.3 million, or 0.2% per
issuer.
At March 31, 2022, 99.4% of the Company’s
Comprehensive Investment Portfolio was invested in senior secured
loans, comprised of 95.1% first lien senior secured loans and
approximately 4.3% second lien senior secured loans, of which 1.4%
were second lien cash flow loans and 2.9% were second lien
asset-based loans.
The weighted average yield at fair value of all
income-producing investments in the Comprehensive Portfolio was
10.0% at March 31, 2022.
Pro Forma Portfolio
CompositionThe table below illustrates SLRC’s
Comprehensive Investment Portfolio pro forma for the merger,
including the estimated portfolio fair values of SUNS, as of March
31, 2022. The SUNS estimate is provided by the investment advisor
and the fair values of the portfolio investments held by SUNS at
March 31, 2022 were not reviewed or approved by the SUNS board of
directors.
Pro forma Comprehensive Investment Portfolio
Composition(at fair value) |
Amount |
($mm) |
% |
Cash Flow Senior Secured Loans |
$613.2 |
23.0% |
Asset-Based Senior Secured
Loans / SLR-CS(1) |
$471.0 |
17.7% |
Equipment Senior Secured
Financings / SLR-EF(2) |
$316.5 |
11.9% |
Life Science Senior Secured
Loans |
$337.0 |
12.7% |
Corporate Leasing /
KBH(3) |
$573.2 |
21.5% |
Traditional Asset-Based Senior
Secured Loans(4) |
$263.4 |
9.9% |
Healthcare Asset-Based Senior Secured Loans(5) |
$76.7 |
2.9% |
Total Senior Secured Loans |
$2,651.0 |
99.6% |
Equity
and Equity-like Securities |
$11.3 |
0.4% |
Total Comprehensive Investment Portfolio |
$2,662.3 |
100.0% |
Floating Rate Investments(6) |
$1,697.7 |
64.0% |
First Lien Senior Secured Loans |
$2,562.9 |
96.3% |
Second Lien Senior Secured Cash Flow Loans |
$29.2 |
1.1% |
Second Lien Senior Secured Asset-Based Loans |
$58.9 |
2.2% |
(1) Includes SLR-CS’ full portfolio and
asset-based and lender finance loans on the Company’s balance sheet
and excludes the Company’s equity investment in SLR-CS.(2) Includes
SLR-EF’s full portfolio and equipment financings on the Company’s
balance sheet and excludes the Company’s equity and debt
investments in SLR-EF.(3) Includes KBH’s full portfolio and
excludes the Company’s equity and debt investments in KBH.(4)
Includes the full portfolio of SLR Business Credit, all of which
are 1st lien senior secured loans.(5) Includes the full portfolio
of SLR Healthcare ABL, all of which are 1st lien senior secured
loans.(6) Floating rate investments calculated as a percent of the
Company’s income-producing Comprehensive Investment Portfolio. The
majority of fixed rate loans are associated with SLR-EF and leases
associated with KBH. Additionally, SLR-EF and KBH seek to
match-fund their fixed rate assets with fixed rate liabilities.
SLR Investment Corp.
Portfolio
Asset Quality
As of March 31, 2022, on a fair value basis
98.3%, of the Company’s portfolio was performing.
The Company puts its greatest emphasis on risk
mitigation and credit performance. On a quarterly basis, or more
frequently if deemed necessary, the Company formally rates each
portfolio investment on a scale of one to four, with one
representing the least amount of risk.
As of March 31, 2022, the composition of our
portfolio, on a risk ratings basis, was as follows:
Internal Investment Rating |
Investments at Fair Value ($mm) |
% of Total Portfolio |
1 |
$276.0 |
17.0% |
|
2 |
$1,288.8 |
79.2% |
|
3 |
$19.3 |
1.2% |
|
4 |
$42.4 |
2.6% |
|
Investment Income Contribution by Business
Unit
|
Business Unit Contribution to Gross Investment
Income (1)(in millions) |
For the QuarterEnded: |
Cash FlowLending |
Asset-basedLending
/SLR-CS |
EquipmentFinancing / SLR-EF |
Life ScienceLending |
CorporateLeasing |
Total |
3/31/2022 |
$7.4 |
$9.6 |
$3.3 |
$7.6 |
$5.1 |
$33.0 |
% Contribution |
22.3% |
28.9% |
10.1% |
23.2% |
15.5% |
100.0% |
(1) Investment Income Contribution by Business
Unit includes interest income/fees from cash flow loans on balance
sheet, income/fees from asset-based loans on balance sheet and
distributions from SLR-CS, income/fees from equipment financings
and distributions from SLR-EF, distributions from KBH, and
income/fees from life science loans.
SLR Investment Corp.’s Results of Operations for the
Quarter Ended March 31, 2022 compared to the Quarter Ended March
31, 2021.
Investment Income
For the fiscal quarters ended March 31, 2022 and
2021, gross investment income totaled $33.0 million and $35.9
million, respectively. The decrease in gross investment income for
the year over year three month periods was primarily due to a
reduction in non-recurring revenue.
Expenses
Expenses totaled $19.5 million and $20.4
million, respectively, for the fiscal quarters ended March 31, 2022
and 2021. The decrease in expenses for the year over year period
was primarily due to the reduction in incentive fees. Partially
offsetting the decrease were higher general and administrative
expenses resulting from one-time expenses related to the
merger.
Net Investment Income
The Company’s net investment income totaled $13.5 million and
$15.5 million, or $0.32 and $0.37 per average share, respectively,
for the fiscal quarters ended March 31, 2022 and 2021. Excluding
one-time expenses related to the merger, net investment income per
share for the quarter ended March 31, 2022 would have been
$0.35.
Non-GAAP Financial Measures
This press release contains certain financial measures that have
not been prepared in accordance with generally accepted accounting
principles in the United States (GAAP). SLR Investment Corp. uses
these non-GAAP financial measures internally in analyzing financial
results and believes that the use of these non-GAAP financial
measures is useful to investors as an additional tool to evaluate
ongoing results and trends and in comparing SLR Investment Corp.’s
financial results with other business development companies.
Non-GAAP financial measures are not meant to be considered in
isolation or as a substitute for comparable GAAP financial
measures, and should be read only in conjunction with SLR
Investment Corp.’s consolidated financial statements prepared in
accordance with GAAP. A reconciliation of non-GAAP financial
measures to the most directly comparable GAAP measures has been
provided in this press release, and investors are encouraged to
review the reconciliation.
Reconciliation of Non-GAAP Financial Measures |
|
Quarter Ended March 31, 2022 |
GAAP net investment income per share |
$0.32 |
Plus one-time merger related
expenses per share |
$0.03 |
Adjusted net investment income per share |
$0.35 |
Net Realized and Unrealized Gain (Loss)
Net realized and unrealized gains (losses) for the fiscal
quarters ended March 31, 2022 and 2021 totaled ($12.0) million and
$6.0 million, respectively.
Net Increase in Net Assets Resulting From
Operations
For the quarters ended March 31, 2022 and 2021,
the Company had a net increase in net assets resulting from
operations of $1.5 million and $21.5 million, respectively. For the
quarters ended March 31, 2022 and 2021, earnings per average share
were $0.04 and $0.51, respectively.
Liquidity and Capital Resources
Unsecured Debt
On January 6, 2022, SLRC closed a private
offering of $135 million of the 2027 Series F Unsecured Notes with
a fixed interest rate of 3.33% and a maturity date of January 6,
2027. At March 31, 2022, over 77% of the Company’s funded debt, or
$631 million, was comprised of fixed rate unsecured notes.
Credit Facilities and Available Capital
At March 31, 2022, the Company had $184 million
drawn on its $700 million revolving credit facility and had
approximately $9.1 million in cash on hand. Including cash on hand
and credit facility capacity at SLRC, SLR-CS, SLR-EF, and KBH, the
Company had access to $765 million of available capital, subject to
borrowing base limitations.
Leverage
On March 31, 2022, the Company’s net
debt-to-equity was 0.98x. SLRC’s current leverage provides a
significant cushion to its regulatory asset coverage limit of 2.0x
debt-to-equity as well as its target leverage ratio of 0.9x –
1.25x. Pro forma for the merger with SUNS, SLRC’s net leverage
ratio at March 31, 2022 would be 0.90x.
Unfunded Commitments
At March 31, 2022, excluding commitments to
SLR-CS and SLR-EF, the Company had unfunded commitments of $179.6
million, including $23.3 million of revolver commitments.
Recent Developments
Merger
On April 1, 2022, SLRC completed its previously
announced acquisition of SUNS. In accordance with the terms of the
merger agreement, at the effective time of the merger, each
outstanding share of SUNS’ common stock was converted into the
right to receive 0.7796 shares of our common stock (with SUNS’
stockholders receiving cash in lieu of fractional shares of our
common stock). As a result of the merger, SLRC issued an aggregate
of 12,511,825 shares of common stock to former SUNS
stockholders.
Permanent Reduction in Base Management Fee
On April 1, 2022, in connection with the
consummation of the merger with SUNS, SLRC entered into a letter
agreement pursuant to which SLR Capital Partners, LLC, our
investment adviser (“SLR Capital Partners”), voluntarily agreed to
a permanent 25 basis point reduction of the annual base management
fee rate payable by us to SLR Capital Partners pursuant to the
investment advisory agreement by and between us and SLR Capital
Partners, resulting in an annual base management fee rate payable
by the Company to SLR Capital Partners of 1.50% on gross assets up
to 200% of SLRC’s total net assets. We retained the annual base
management fee rate payable by the Company to SLR Capital Partners
of 1.00% on gross assets that exceed 200% of SLRC’s total net
assets.
Assumption of SUNS Credit Facility
On April 1, 2022, SLRC assumed SUNS’ revolving
credit facility, effective as of the closing of the merger with
SUNS. Currently, the commitment under SUNS’ revolving credit
facility is $225 million; however, the commitment can be expanded
up to $600 million. The stated interest rate on SUNS’ credit
facility is LIBOR plus 2.00%-2.50% with no LIBOR floor requirement
and the current final maturity date is June 1, 2026.
Assumption of SUNS Notes
On April 1, 2022, SLRC entered into an
assumption agreement (the “Note Assumption Agreement”), effective
as of the closing of the merger with SUNS. The Note Assumption
Agreement relates to the Company’s assumption of $85 million in
aggregate principal amount of five-year, 3.90% senior unsecured
notes, due March 31, 2025. Interest on these notes is due
semi-annually on March 31 and September 30.
Timing of Distributions
On April 1, 2022, SLRC adjusted the timing of
its distributions from quarterly to monthly, effective as of the
closing of the merger with SUNS. On April 4, 2022, the Board
declared a monthly distribution of $0.136667 per share which was
paid on May 3, 2022 to holders of record as of April 21, 2022. On
May 3, 2022, the Board declared a monthly distribution of $0.136667
per share payable on June 2, 2022 to holders of record as of May
19, 2022.
Share Repurchase Program
On May 3, 2022, SLRC’s Board authorized the
Company to adopt a program for the purpose of repurchasing up to
$50 million of SLRC’s outstanding shares of common stock. Under the
repurchase program, the Company may, but is not obligated to,
repurchase shares of SLRC’s outstanding common stock in the open
market from time to time provided the Company’s compliance with its
code of ethics and the guidelines specified in Rule 10b-18 of the
Securities Exchange Act of 1934, as amended, including certain
price, market volume and timing constraints. In addition, any
repurchases will be conducted in accordance with the Investment
Company Act of 1940, as amended. Unless amended or extended by our
Board, the repurchase program is expected to be in place until the
earlier of May 1, 2023 or until $50 million of our outstanding
shares of common stock have been repurchased. The timing and number
of shares to be repurchased will depend on a number of factors,
including market conditions. There are no assurances that the
Company will engage in any repurchases.
Financial Statements and
Tables
SLR Investment Corp.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except share amounts)
|
March 31, 2022(unaudited) |
December 31,2021 |
Assets |
|
|
Investments at fair value: |
|
|
Companies less than 5% owned (cost: $956,039 and $985,088,
respectively) |
$ |
921,831 |
|
$ |
964,379 |
|
Companies more than 25% owned (cost: $708,850 and $711,865,
respectively) |
|
704,642 |
|
|
706,203 |
|
Cash |
|
9,075 |
|
|
2,935 |
|
Cash equivalents (cost: $579,829
and $320,000, respectively) |
|
579,829 |
|
|
320,000 |
|
Dividends receivable |
|
9,001 |
|
|
9,028 |
|
Interest receivable |
|
7,244 |
|
|
6,521 |
|
Receivable for investments
sold |
|
735 |
|
|
1,378 |
|
Prepaid expenses and other
assets |
|
927 |
|
|
567 |
|
|
|
|
Total assets. |
$ |
2,233,284 |
|
$ |
2,011,011 |
|
|
|
|
Liabilities |
|
|
Debt ($815,000 and $818,500 face
amounts, respectively, reported net of unamortized debt issuance
costs of $6,142 and $6,462, respectively |
$ |
808,858 |
|
$ |
812,038 |
|
Payable for investments and cash
equivalents purchased |
|
579,870 |
|
|
320,041 |
|
Distributions payable |
|
‒ |
|
|
17,327 |
|
Management fee payable |
|
7,216 |
|
|
7,435 |
|
Performance-based incentive fee
payable |
|
‒ |
|
|
1,864 |
|
Interest payable |
|
8,062 |
|
|
4,492 |
|
Administrative services expense
payable |
|
520 |
|
|
2,689 |
|
Other liabilities and accrued
expenses |
|
2,341 |
|
|
2,844 |
|
Total liabilities |
$ |
1,406,867 |
|
$ |
1,168,730 |
|
|
|
|
|
|
|
Net Assets |
|
|
Common stock, par value $0.01 per
share, 200,000,000 and 200,000,000 common shares authorized,
respectively, and 42,260,826 and 42,260,826 shares issued and
outstanding, respectively |
$ |
423 |
|
$ |
423 |
|
Paid-in capital in excess of
par |
|
936,999 |
|
|
936,999 |
|
Accumulated distributable net
loss |
|
(111,005 |
) |
|
(95,141 |
) |
|
|
|
Total net assets |
$ |
826,417 |
|
$ |
842,281 |
|
|
|
|
Net Asset Value Per
Share |
$ |
19.56 |
|
$ |
19.93 |
|
|
|
|
SLR Investment Corp.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)(in thousands, except share
amounts)
|
|
|
|
Three months ended |
|
March 31, 2022 |
|
March 31, 2021 |
INVESTMENT
INCOME: |
|
|
Interest: |
|
|
Companies less than 5% owned |
$ |
20,662 |
|
$ |
20,832 |
|
Companies more than 25% owned |
|
2,561 |
|
|
2,885 |
|
Dividends: |
|
|
Companies less than 5% owned |
|
‒ |
|
|
133 |
|
Companies more than 25% owned |
|
9,715 |
|
|
9,575 |
|
Other income: |
|
|
Companies less than 5% owned |
|
63 |
|
|
2,462 |
|
Companies more than 25% owned |
|
5 |
|
|
‒ |
|
|
|
|
Total investment income |
|
33,006 |
|
|
35,887 |
|
|
|
|
EXPENSES: |
|
|
Management fees.. |
|
7,216 |
|
|
6,810 |
|
Performance-based incentive
fees |
|
‒ |
|
|
3,867 |
|
Interest and other credit
facility expenses |
|
8,328 |
|
|
7,229 |
|
Administrative services
expense |
|
1,183 |
|
|
1,360 |
|
Other general and administrative
expenses |
|
2,801 |
|
|
1,155 |
|
|
|
|
Total expenses |
|
19,528 |
|
|
20,421 |
|
|
|
|
Net investment income |
$ |
13,478 |
|
$ |
15,466 |
|
|
|
|
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS: |
|
|
Net realized gain (loss) on investments and cash equivalents
(companies less than 5% owned) |
$ |
30 |
|
$ |
(366) |
|
|
|
|
Net change in unrealized gain
(loss) on investments and cash equivalents: |
|
|
Companies less than 5% owned |
|
(13,498) |
|
|
6,046 |
|
Companies more than 25% owned |
|
1,453 |
|
|
364 |
|
|
|
|
Net change in unrealized gain (loss) on investments and cash
equivalents |
|
(12,045) |
|
|
6,410 |
|
|
|
|
Net realized and unrealized gain (loss) on investments and cash
equivalents |
|
(12,015) |
|
|
6,044 |
|
|
|
|
NET INCREASE IN NET
ASSETS RESULTING FROM OPERATIONS |
$ |
1,463 |
|
$ |
21,510 |
|
|
|
|
EARNINGS PER
SHARE |
$ |
0.04 |
|
$ |
0.51 |
|
|
|
|
About SLR Investment Corp.
SLR Investment Corp. 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 in the form of cash flow senior
secured loans including first lien and second lien debt instruments
and asset-based loans including senior secured loans collateralized
on a first lien basis primarily by current assets.
Forward-Looking Statements
Some of the statements in this press release
constitute forward-looking statements because they relate to future
events, future performance or financial condition. The
forward-looking statements may include statements as to: future
operating results of SLRC and SUNS and distribution projections;
business prospects of SLRC and SUNS and the prospects of their
portfolio companies; and the impact of the investments that SLRC
and SUNS expect to make. In addition, words such as “anticipate,”
“believe,” “expect,” “seek,” “plan,” “should,” “estimate,”
“project” and “intend” indicate forward-looking statements,
although not all forward-looking statements include these words.
The forward-looking statements contained in this press release
involve risks and uncertainties. Certain factors could cause actual
results and conditions to differ materially from those projected,
including the uncertainties associated with (i) the expected
synergies and savings associated with the two-step merger of SUNS
with and into SLRC (the “Merger”); (ii) the ability to realize the
anticipated benefits of the Merger, including the expected
elimination of certain expenses and costs due to the Merger; (iii)
the risk that shareholder litigation in connection with the Merger
may result in significant costs of defense and liability; (iv)
changes in the economy, financial markets and political
environment; (v) risks associated with possible disruption in the
operations of SLRC or the economy generally due to terrorism,
natural disasters or the COVID-19 pandemic; (vi) future changes in
laws or regulations (including the interpretation of these laws and
regulations by regulatory authorities); (vii) conditions in SLRC’s
operating areas, particularly with respect to business development
companies or regulated investment companies; (viii) general
considerations associated with the COVID-19 pandemic; and (ix)
other considerations that may be disclosed from time to time in
SLRC’s publicly disseminated documents and filings. SLRC has based
the forward-looking statements included in this press release on
information available to it on the date of this press release, and
SLRC assumes no obligation to update any such forward-looking
statements. Although SLRC undertakes no obligation to revise or
update any forward-looking statements, whether as a result of new
information, future events or otherwise, you are advised to consult
any additional disclosures that it may make directly to you or
through reports that SLRC in the future may file with the
Securities and Exchange Commission, including annual reports on
Form 10-K, quarterly reports on Form 10-Q and current reports on
Form 8-K.
ContactSLR Investment Corp.Investor
Relations(646) 308-8770
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