Solar Senior Capital Ltd. (NASDAQ: SUNS) (the 'Company' 'Solar Senior' or 'SUNS') today reported net investment income of $4.8 million, or $0.30 per average share, for the quarter ended September 30, 2020.
At September 30, 2020, net asset value (NAV) was $15.79 per share, an increase of $0.24 per share or 2% from June 30, 2020, driven primarily by unrealized mark-to-market appreciation. At September 30, 2020, 100% of Solar Senior's portfolio was performing.
The Company's Board of Directors declared a monthly distribution for November 2020 of $0.10 per share payable on December 2, 2020 to stockholders of record on November 19, 2020. Tax characteristics of all distributions will be reported to shareholders on Form 1099 after the end of the calendar year.
HIGHLIGHTS:
At September 30, 2020: Comprehensive Investment portfolio fair value: $521.6 million
Number of portfolio companies: 206
Net assets: $253.4 million
Net asset value per share: $15.79
Net Debt to Equity: 0.52x
Available Capital: Over $250 million, subject to borrowing base availability
Comprehensive Portfolio Activity for the Quarter Ended September 30, 2020
Investments made during the quarter: $40.3 million
Investments repaid or sold during the quarter: $55.8 million
Operating Results for the Quarter Ended September 30, 2020
Net investment income: $4.8 million
Net investment income per share: $0.30
Net realized and unrealized gain: $3.8 million
Net increase in net assets from operations: $8.6 million
Earnings per share: $0.54
The Comprehensive Investment Portfolio is comprised of Solar Senior Capital Ltd.'s investment portfolio, Gemino Healthcare Finance's ('Gemino') full portfolio and North Mill Holdco LLC's ('North Mill') full portfolio, and excludes the Company's fair value of its equity interest in Gemino and North Mill.
Comprehensive Portfolio Activity includes gross originations/repayments through Gemino and North Mill.
'SUNS portfolio continued to perform extremely well in Q3 reflecting our focus on first lien senior secured cash flow loans and asset-based loans in our niche specialty finance verticals,' said Michael Gross, Co-CEO of SUNS. 'At September 30, 2020, 100% of our investments were performing and their improved valuations drove a 2% increase in our Net Asset Value per share over the prior quarter. Our portfolio companies have resilient business models and access to liquidity that have enabled them to weather a challenging period.'
'The conservative management of SUNS assets and liabilities through an extended period of frothy credit markets has positioned the company with a solid portfolio foundation, a stable funding profile, low leverage, strong liquidity, and favorable positioning to make new investments,' said Bruce Spohler, Co-CEO of SUNS. 'We are encouraged by the pickup in M&A activity during Q3 and the sponsor-led momentum leading into 2021. We expect portfolio growth in the coming quarters from a growing pipeline of first lien cash flow and asset-based loan investments.'
Conference Call and Webcast
The Company will host an earnings conference call and audio webcast at 11:30 a.m. (Eastern Time) on Friday, November 6, 2020. All interested parties may participate in the conference call by dialing (844) 889-7785 approximately 5-10 minutes prior to the call, international callers should dial (661) 378-9929. Participants should reference Solar Senior Capital Ltd. and the participant passcode of 6735445 when prompted. A telephone replay will be available until November 20, 2020 and can be accessed by dialing (855) 859-2056 and using the passcode 6735445. 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 Solar Senior Capital's website, www.solarseniorcap.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 quarter ended September 30, 2020, Solar Senior Capital had total originations of $40.3 million and repayments of $55.8 million across the Company's core businesses comprised of senior secured cash flow, traditional asset-based lending and healthcare asset-based lending, resulting in a net portfolio reduction of $15.5 million to the comprehensive portfolio.
Includes North Mill's full portfolio, all of which are 1st lien senior secured loans.
Includes Gemino's full portfolio, all of which are 1st lien senior secured loans.
Excludes the Company's equity investments in North Mill and Gemino, which distribute quarterly dividends to the Company.
Floating rate investments calculated as a percent of the Company's income-producing Comprehensive Investment Portfolio.
Represents the yield to maturity based on fair market value at September 30, 2020.
Represents total interest and fee income for the three month period ending on September 30, 2020 against the average portfolio over the same fiscal period, annualized.
Represents the weighted average of each individual loan's yield to maturity based on fair value at September 30, 2020 (excluding exit fees or warrants).
The Comprehensive Investment Portfolio is diversified across approximately 206 unique borrowers in over 120 industries. The average issuer exposure is $2.5 million, or
SLR SENIOR INVESTMENT CORP. 
