NEW YORK--(BUSINESS WIRE)--Jul. 31, 2012--
Solar Senior Capital Ltd. (NASDAQ: SUNS), today reported earnings
of $3.6 million, or $0.38 per share, and net investment income of $3.4
million, or $0.36 per share, for the quarter ended June 30, 2012. Net
asset value (NAV) per share increased to $18.54, from $18.15 at December
31, 2011.
The Company also announced that its Board of Directors has declared a
monthly dividend of $0.115 per share for August 2012, which will be
payable on September 5, 2012 to stockholders of record on August 23,
2012. The Company expects the dividend to be paid from taxable earnings
with specific tax characteristics reported to stockholders after the end
of the 2012 calendar year.
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Balance Sheet Highlights
($ in millions, except per share amounts)
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|
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June 30, 2012
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December 31, 2011
|
|
|
|
|
|
|
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Investment Portfolio
|
|
$
|
222.1
|
|
$
|
177.7
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|
Total Assets
|
|
$
|
227.6
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$
|
187.4
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Net Assets
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$
|
176.1
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$
|
172.4
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NAV per share
|
|
$
|
18.54
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$
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18.15
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|
|
|
|
|
|
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Weighted Average Yield
on Fair Value
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|
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8.0%
|
|
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8.5%
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|
|
|
|
|
|
|
|
|
|
|
|
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Income Highlights
($ in thousands, except per share amounts)
|
|
|
|
|
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For the quarter
ended
June 30, 2012
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For the six months
ended
June 30, 2012
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Investment Income
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$
|
5,599
|
|
$
|
9,508
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Net Investment Income
|
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$
|
3,441
|
|
$
|
6,067
|
|
Net Realized/Unrealized Gain
|
|
$
|
192
|
|
$
|
3,283
|
|
Net Income
|
|
$
|
3,633
|
|
$
|
9,350
|
|
|
|
|
|
|
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NII per share
|
|
$
|
0.36
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$
|
0.64
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Dividends Paid per share
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|
$
|
0.30
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|
$
|
0.60
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“Our second quarter results reflect continued success in leveraging our
origination platform to source attractive middle market senior secured
loans and to further diversify our portfolio across a broader number of
positions and industry groups,” said Michael Gross, Chairman and CEO of
Solar Senior Capital. “The portfolio is 100% performing and the weighted
average yield is 8.0% at current fair value. Continued growth in our net
investment income allowed us to increase the monthly dividend since
quarter end by 15% to 11.5 cents per share. NII per share exceeded
dividends paid in the current quarter and year to date. We believe that
we are on course to further increase our monthly dividend as we continue
to grow the portfolio to our target leverage level.”
Portfolio and Investment Activity
During the quarter ended June 30, 2012, we invested $68.5 million across
six new portfolio companies and four existing portfolio companies. Year
to date, we have invested $108.8 million. We received proceeds of
$53.4 million from repayments in the second quarter, which included
approximately $34 million from the full redemption of two portfolio
investments. In addition, we received approximately $7 million in
proceeds from the sale of two loans during the second quarter at prices
in excess of cost. For the six month period ended June 30, 2012, we
received proceeds of $66.5 million in repayments and sales.
The fair value weighted average yield on income producing investments in
our portfolio was approximately 8.0% as of June 30, 2012.
At June 30, 2012, we had investments in debt securities of 29 portfolio
companies across 18 industry groups, totaling approximately $222.1
million. The portfolio was comprised of approximately 97% senior secured
loans and 3% unsecured debt. As of June 30, 2012, there were no assets
on non-accrual.
Results of Operations
SUNS generated investment income of approximately $5.6 million for the
second quarter and approximately $9.5 million for the six months ended
June 30, 2012. The increase in investment income was primarily
attributable to interest earned on a larger investment portfolio. Net
investment income was approximately $3.4 million or $0.36 per share for
the second quarter and approximately $6.1 million or $0.64 per share for
the six months ended June 30, 2012.
During the second quarter of 2012 and for the six months ended June 30,
2012, we had net realized and unrealized gains of $0.2 million and $3.3
million respectively.
Conference Call and Webcast
The company will host an earnings conference call and audio webcast
at 11:00 a.m. (Eastern Time) on Wednesday, August 1, 2012. All
interested parties may participate in the conference call by dialing
(866) 510-0676 approximately 5-10 minutes prior to the call.
International callers should dial (617) 597-5361. Participants should
reference Solar Senior Capital Ltd. and the participant passcode of
55205473 when prompted. This conference call will 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 live call, please go to the Company's website at least
15 minutes 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, an archived replay of the call will be available
approximately one hour after the end of the conference through August
17, 2012 to domestic callers by dialing (888) 286-8010 and to
international callers by dialing (617) 801-6888. For all replays, please
reference passcode 23086902. An archived replay will also be available
on the webcast link located on the home page of our website.
Financial Statements and Tables
SOLAR SENIOR CAPITAL LTD.
STATEMENT OF ASSETS AND
LIABILITIES
(in thousands, except shares)
|
|
|
|
|
|
|
|
|
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June 30, 2012
|
|
|
|
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(unaudited)
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December 31, 2011
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Assets
|
|
|
|
|
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Non-controlled, non-affiliated investments, at fair value (cost:
$221,511 and
$180,023, respectively)
|
|
$
|
222,119
|
|
$
|
177,749
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Cash and cash equivalents
|
|
|
4,033
|
|
|
2,934
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Receivable for investments sold
|
|
|
83
|
|
|
4,931
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|
Interest receivable
|
|
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1,322
|
|
|
1,687
|
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Deferred offering costs
|
|
|
66
|
|
|
-
|
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Prepaid expenses and other receivables
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|
|
25
|
|
|
94
|
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Total Assets
|
|
|
227,648
|
|
|
187,395
|
|
|
|
|
|
|
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Liabilities
|
|
|
|
|
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Credit facility payable, at fair value
|
|
|
44,900
|
|
|
8,600
|
|
Payable for investments purchased
|
|
|
3,918
|
|
|
4,912
|
|
Dividends payable
|
|
|
950
|
|
|
-
|
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Investment advisory and management fee payable
|
|
|
540
|
|
|
944
|
|
Accrued performance-based incentive fees
|
|
|
499
|
|
|
-
|
|
Administrative service fees payable
|
|
|
308
|
|
|
141
|
|
Other accrued expenses and payables
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|
|
436
|
|
|
363
|
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Total Liabilities
|
|
|
51,551
|
|
|
14,960
|
|
|
|
|
|
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Net Assets
|
|
|
|
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|
Common stock, par value $0.01 per share 9,500,100 shares issued
and outstanding,
200,000,000 authorized
|
|
|
95
|
|
|
95
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|
Paid-in capital in excess of par
|
|
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177,827
|
|
|
177,815
|
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Distributions in excess of net investment income
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(2,258)
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|
|
(2,625)
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Accumulated net realized loss on investments
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(175)
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|
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(576)
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Net unrealized appreciation (depreciation) on investments
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|
|
608
|
|
|
(2,274)
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Total Net Assets
|
|
$
|
176,097
|
|
$
|
172,435
|
|
|
|
|
|
|
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Number of shares outstanding
|
|
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9,500,100
|
|
|
9,500,100
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Net Asset Value Per Share
|
|
$
|
18.54
|
|
$
|
18.15
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SOLAR SENIOR CAPITAL LTD.
STATEMENT OF OPERATIONS (unaudited)
(in thousands, except shares)
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|
|
|
|
|
|
|
|
|
|
|
|
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For the three
months ended
June 30, 2012
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|
For the three
months ended
June 30, 2011
|
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For the six
months ended
June 30, 2012
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For the period
January 28,
2011(1) to
June
30, 2011
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INVESTMENT INCOME:
|
|
|
|
|
|
|
|
|
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Interest income from non-controlled, non-affiliated investments
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|
$
|
5,599
|
|
|
$
|
1,405
|
|
$
|
9,508
|
|
$
|
1,462
|
|
|
|
|
|
|
|
|
|
|
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EXPENSES:
|
|
|
|
|
|
|
|
|
|
Investment advisory and management fees
|
|
|
543
|
|
|
|
156
|
|
|
1,041
|
|
|
156
|
|
Interest and other credit facility expenses
|
|
|
447
|
|
|
|
-
|
|
|
692
|
|
|
-
|
|
Performance-based incentive fees
|
|
|
451
|
|
|
|
36
|
|
|
499
|
|
|
64
|
|
Administrative service fee
|
|
|
326
|
|
|
|
92
|
|
|
490
|
|
|
119
|
|
Insurance expense
|
|
|
100
|
|
|
|
99
|
|
|
199
|
|
|
141
|
|
Other general and administrative expenses
|
|
|
291
|
|
|
|
228
|
|
|
520
|
|
|
308
|
|
Total expenses
|
|
|
2,158
|
|
|
|
611
|
|
|
3,441
|
|
|
788
|
|
Net investment income
|
|
|
3,441
|
|
|
|
794
|
|
|
6,067
|
|
|
674
|
|
|
|
|
|
|
|
|
|
|
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REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
|
|
|
|
|
|
|
|
|
|
Net realized gain on non-controlled, non-affiliated investments
|
|
|
359
|
|
|
|
-
|
|
|
401
|
|
|
-
|
|
Net change in unrealized gain (loss) on non-controlled, non-
affiliated
investments
|
|
|
(167
|
)
|
|
|
180
|
|
|
2,882
|
|
|
318
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized gain on investments
|
|
|
192
|
|
|
|
180
|
|
|
3,283
|
|
|
318
|
|
|
|
|
|
|
|
|
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NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
|
|
$
|
3,633
|
|
|
$
|
974
|
|
$
|
9,350
|
|
$
|
992
|
|
|
|
|
|
|
|
|
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Earnings per share
|
|
$
|
0.38
|
|
|
$
|
0.10
|
|
$
|
0.98
|
|
$
|
0.13
|
|
|
|
|
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(1) Commencement of operations
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About Solar Senior Capital Ltd.
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. The Company invests primarily in
leveraged, middle market companies in the form of senior secured loans
including first lien, unitranche, and second lien debt instruments.
Forward-Looking Statements
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 Securities and Exchange
Commission. Solar Senior Capital Ltd. undertakes no duty to update any
forward-looking statements made herein.
Source: Solar Senior Capital Ltd.
Solar Senior Capital Ltd.
Richard Pivirotto, 212-994-8543
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