NEW YORK -- (Business Wire)
Solar Senior Capital Ltd. (NASDAQ:SUNS), today reported earnings
of $0.76 million, or $0.08 per share for the quarter ended December 31,
2012 and $13.9 million, or $1.46 per share, for the fiscal year ended
December 31, 2012. Net investment income was $3.4 million, or $0.36 per
share, for the fourth quarter and $12.5 million, or $1.32 per share, for
the fiscal year. Excluding the non-recurring expenses of approximately
$1.0 million related to the amendment and extension of our credit
facility, Solar Senior Capital’s net investment income in the fourth
quarter would have been $0.45 per share. Net asset value (NAV) per share
was $18.33 at December 31, 2012 compared to $18.60 at September 30, 2012
and $18.15 at December 31, 2011.
Solar Senior Capital Ltd. (the “Company”) also announced that its Board
of Directors has declared a monthly dividend of $0.1175 per share
for March 2013, which will be payable on April 2, 2013 to stockholders
of record on March 21, 2013. The Company expects the dividend to be paid
from taxable earnings with specific tax characteristics reported to
stockholders after the end of the 2013 calendar year.
HIGHLIGHTS:
At December 31, 2012:
Investment Portfolio: $212.6 million
Number of portfolio companies: 31
Net Assets: $174.1 million
Net Asset Value per share: $18.33
Portfolio Activity for the Quarter Ended December 31, 2012:
Investments made during the quarter: $59.9 million
Investments repaid and sold during the quarter: $80.7 million
Portfolio Activity for the Fiscal Year Ended December 31, 2012
Investments made during the year: $196.2 million
Investments repaid and sold during the year: $162.6 million
Operating Results for the Quarter Ended December 31, 2012
Net investment income: $3.4 million
Net realized and unrealized losses: $2.7 million
Net increase in net assets from operations: $0.8 million
Net investment income per share: $0.36
Operating Results for the Year Ended December 31, 2012
Net investment income: $12.5 million
Net realized and unrealized gains: $1.4 million
Net increase in net assets from operations: $13.9 million
Net investment income per share: $1.32
“2012 was a successful and productive year for Solar Senior Capital in
further building the foundation for creating long term shareholder
value. We increased our monthly per share dividend in the second half of
the year by 17.5% and took advantage of heated capital market conditions
to reset our capital structure while remaining prudent and disciplined
in our approach to new investments,” said Michael Gross, Chairman and
CEO of Solar Senior Capital Ltd. “We are in the process of investing the
portfolio in light of the significant repayments experienced in Q4. We
have significant investment capacity to build a larger, more diversified
portfolio and are focused on sourcing proprietary senior secured,
cash-pay investments that meet our strict underwriting standards.”
Conference Call and Webcast
The company will host an earnings conference call and audio webcast at
11:00 a.m. (Eastern Time) on Tuesday, February 26, 2013. All interested
parties may participate in the conference call by dialing (866) 362-4820
approximately 5-10 minutes prior to the call, international callers
should dial (617) 597-5345. Participants should reference Solar Senior
Capital Ltd. and the participant passcode of 34902497 when prompted.
Following the call you may access a replay of the event via audio
webcast. 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, a replay will be available shortly after the call on the
Solar Senior Capital website. Additionally, a replay dial-in will be
available until March 12, 2013 and can be accessed by dialing (888)
286-8010 and using the passcode 54923991. International callers should
dial (617) 801-6888.
Portfolio and Investment Activity
During our fiscal year ended December 31, 2012, we invested a total of
$196.2 million, with $125.3 million invested in 19 new portfolio
companies and $70.9 million invested in 9 existing portfolio companies.
At December 31, 2012, our portfolio consisted of 31 portfolio companies
and was invested 97% in senior secured loans and 3% unsecured loans
measured at fair value and over 98% of the portfolio at fair value is
comprised of floating rate securities.
The weighted average yield on our portfolio of investments at fair value
was 7.8% at December 31, 2012.
Our advisor, Solar Capital Partners has invested approximately $3.4
billion in more than 120 different portfolio companies since it was
founded in 2006 and has completed transactions with more than 90
financial sponsors.
Results of Operations for the Twelve Months
Ended December 31, 2012 compared to the period January 28, 2011
(commencement of operations) to December 31, 2011.
Investment Income
For the fiscal year ended December 31, 2012 and the period January 28,
2011 (commencement of operations) to December 31, 2011, gross investment
income totaled $20.5 million and $7.9 million, respectively. The
increase in gross investment income from fiscal year 2011 to fiscal year
2012 was primarily due to an increase in the size of the
income-producing portfolio as compared to the previous fiscal year
combined with having a full fiscal year for 2012 as compared to a
partial fiscal 2011.
Expenses
Net expenses totaled $8.0 million and $5.3 million, respectively, for
the fiscal year ended December 31, 2012, and the period January 28, 2011
(commencement of operations) to December 31, 2011. The increase in
expenses from fiscal 2011 to fiscal 2012 was primarily due to a year
that saw significant growth in our portfolio of assets and business in
general, as compared to our partial first year of operations in 2011.
Net Investment Income
The Company’s net investment income totaled $12.5 million or $1.32 per
average share and $2.6 million or $0.30 per average share, for the
fiscal year ended December 31, 2012 and the period January 28, 2011
(commencement of operations) to December 31, 2011, respectively.
Excluding non-recurring charges, net investment income in the fiscal
year ended December 31, 2012, was $1.42 per share.
Net Realized Gains (Losses)
The Company had investment sales and prepayments totaling $162.6 million
and $34.2 million, respectively, for the fiscal year ended December 31,
2012, and the period January 28, 2011 (commencement of operations) to
December 31, 2011. Net realized gains (losses) for the fiscal year ended
December 31, 2012, and the period January 28, 2011 (commencement of
operations) to December 31, 2011 totaled $0.6 million and ($0.6)
million, respectively.
Net Increase (Decrease) in Net Assets Resulting From Operations
For the fiscal year ended December 31, 2012, and the period January 28,
2011 (commencement of operations) to December 31, 2011, the Company had
a net increase (decrease) in net assets resulting from operations of
$13.9 million and ($0.3) million, respectively. For the fiscal year
ended December 31, 2012, and the period January 28, 2011 (commencement
of operations) to December 31, 2011, basic and diluted earnings (loss)
per average share were $1.46 and ($0.03), respectively.
Liquidity and Capital Resources
At December 31, 2012, the Company had $39.1 million in borrowings
outstanding on its $150 million revolving credit facility.
On January 16, 2013, the Company closed a follow-on public equity
offering of 2.0 million shares of common stock at $18.85 per share,
raising approximately $37.2 million in net proceeds.
Adjusted for the proceeds from the January 2013 equity offering, the
Company would have had the full capacity available under its $150
million credit facility as well as access to additional capacity under
the $50 million delayed draw provision at December 31, 2012.
Financial Statements and Tables
SOLAR SENIOR CAPITAL LTD. CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except share amounts) |
|
| |
| |
| | | |
|
| | December 31, 2012 | | December 31, 2011 |
| Assets | | | | |
|
Non-controlled/non-affiliated investments, at fair value
(cost—$214,075 and $180,023, respectively)
| |
$
|
212,602
| | |
$
|
177,749
| |
|
Cash and cash equivalents
| | |
2,647
| | | |
2,934
| |
|
Receivable for investments sold
| | |
282
| | | |
4,931
| |
|
Interest receivable
| | |
1,294
| | | |
1,687
| |
|
Deferred offering costs
| | |
148
| | | |
—
| |
|
Prepaid expenses and other assets
| |
|
56
|
| |
|
94
|
|
|
Total assets
| |
$
|
217,029
|
| |
$
|
187,395
|
|
| | | |
|
| Liabilities | | | | |
|
Credit facility payable
| |
$
|
39,100
| | |
$
|
8,600
| |
|
Dividends payable
| | |
1,116
| | | |
—
| |
|
Payable for investments purchased
| | |
995
| | | |
4,912
| |
|
Investment advisory and management fee payable
| | |
581
| | | |
944
| |
|
Accrued performance-based incentive fees payable
| | |
84
| | | |
—
| |
|
Interest payable
| | |
121
| | | |
53
| |
|
Accrued administrative services expenses
| | |
431
| | | |
141
| |
|
Other liabilities and accrued expenses
| |
|
498
|
| |
|
310
|
|
|
Total liabilities
| |
$
|
42,926
|
| |
$
|
14,960
|
|
| | | |
|
| Net Assets | | | | |
|
Common stock, par value $.01 per share, 200,000,000 and 200,000,000
common shares authorized, respectively, and 9,500,100 and 9,500,100
issued and outstanding, respectively
| |
$
|
95
| | |
$
|
95
| |
|
Paid-in capital in excess of par
| | |
177,728
| | | |
177,815
| |
|
Distributions in excess of net investment income
| | |
(2,247
|
)
| | |
(2,625
|
)
|
|
Accumulated net realized gain (loss)
| | |
—
| | | |
(576
|
)
|
|
Net unrealized depreciation
| |
|
(1,473
|
)
| |
|
(2,274
|
)
|
|
Total net assets
| |
$
|
174,103
|
| |
$
|
172,435
|
|
| | | |
|
Net Asset Value Per Share
| |
$
|
18.33
|
| |
$
|
18.15
|
|
| | | | | | | |
|
SOLAR SENIOR CAPITAL LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share amounts) |
|
|
|
| Year Ended
December 31,
2012 |
| Period January
28, 2011* to
December 31,
2011 |
| INVESTMENT INCOME: | | | | |
|
From non-controlled/non-affiliated investments:
| | | | |
|
Interest
| |
$
|
20,539
| |
$
|
7,890
|
|
| | | |
|
| EXPENSES: | | | | |
|
Management fees
| |
$
|
2,216
| |
$
|
944
| |
|
Interest expense
| | |
1,485
| | |
237
| |
|
Performance-based incentive fees
| | |
580
| | |
—
| |
|
Administrative services expense
| | |
983
| | |
289
| |
|
Insurance expense
| | |
403
| | |
341
| |
|
Other general and administrative expenses
| |
|
1,418
| |
|
684
|
|
|
Expenses before debt issuance costs
| | |
7,085
| | |
2,495
| |
|
Debt issuance costs
| |
|
961
| |
|
2,795
|
|
|
Total expenses
| |
|
8,046
| |
|
5,290
|
|
|
Net investment income
| |
$
|
12,493
| |
$
|
2,600
|
|
| | | |
|
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | | | | |
|
Net realized gain (loss) on non-controlled/non-affiliated investments
| |
$
|
618
| |
$
|
(576
|
)
|
|
Net change in unrealized gain (loss) on
non-controlled/non-affiliated investments
| |
|
801
| |
|
(2,274
|
)
|
| | | |
|
|
Net realized and unrealized gain (loss) on
non-controlled/non-affiliated investments
| |
|
1,419
| |
|
(2,850
|
)
|
| | | |
|
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | |
$
|
13,912
| |
$
|
(250
|
)
|
| EARNINGS (LOSS) PER SHARE | |
$
|
1.46
| |
$
|
(0.03
|
)
|
| | | | | | |
|
* Commencement of operations
|
| | | | | | |
|
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.
Contacts:
Solar Senior Capital Ltd.
Richard Pivirotto, 212-994-8543
Source: Solar Senior Capital Ltd.