Solar Capital Sees Net Originations of $120.4MM in Q2/2019

Solar Capital reported net investment income of $18.4 million, or $0.44 per share, for the second quarter of 2019.

As of June 30, 2019, net asset value (NAV) was $21.98 per share, an increase from $21.93 the prior quarter. In addition, the company’s portfolio was 100% performing at June 30, 2019.

The board declared a third quarter distribution of $0.41 per share payable on October 2, 2019 to stockholders of record as of September 19, 2019. The specific tax characteristics will be reported to stockholders on Form 1099 after the end of the calendar year.

During the second quarter, Solar Capital had total originations of $120.4 million and repayments and amortization of $162.1 million across its four core business units: cash flow, asset-based, equipment finance and life science lending.

Other highlights from the quarter included:

  • Comprehensive Investment portfolio* fair value: $1.75 billion
  • Number of portfolio companies: 226
  • Net assets: $929.0 million
  • Net asset value per share: $21.98
  • Net realized and unrealized gain: $1.2 million
  • Net increase in net assets from operations: $19.6 million
  • Earnings per share: $0.46

“We are pleased with our second quarter results, during which our NII per share continued to exceed distributions, NAV increased and our portfolio is one hundred percent performing,” said Michael Gross, Solar Capital co-CEO. “At June 30, 2019, over 75% of the Company’s assets were investments in Solar Capital’s commercial finance verticals, reflecting our successful transition to a specialty finance platform focused on senior secured lending across a number of middle market niches.”

“Given the frothy credit markets, Solar Capital continues to take a conservative investment approach with a focus on first lien senior secured transactions which now represent over 88% of our portfolio,” said Bruce Spohler, co-CEO. “With our available capital to grow our portfolio, we believe Solar Capital is positioned for net investment income growth over the balance of 2019.”

Solar Capital is a specialty finance company with expertise in several niche markets. It 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.

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