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Solar Capital Announces June 30, 2012 Financial Results; 18% Investment Portfolio Increase; Declares Quarterly Dividend Of $0.60 Per Share

Stocks in this article: SLRC

Solar Capital Ltd (NASDAQ: SLRC), today reported earnings of $16.1 million, or $0.44 per share, and net investment income of $14.4 million, or $0.39 per share, for the quarter ended June 30, 2012. Excluding expenses incurred relating to the Company’s new $485 million credit facility, $75 million private notes, and other non-recurring expenses, net investment income would have been $20.5 million, or $0.56 per share. At June 30 th, net asset value (NAV) was $824.9 million, or $22.51 per share.

Solar Capital also announced that its Board of Directors has declared a third quarter dividend of $0.60 per share, payable on October 2, 2012 to stockholders of record on September 20, 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.

Balance Sheet Highlights
($ in millions, except per share amounts)
 

 

June 30, 2012

 

 

December 31, 2011

Investment Portfolio $ 1,193.6 $ 1,045.0
Total Assets $ 1,219.9 $ 1,079.4
Net Assets $ 824.9 $ 805.9
 
NAV per share $ 22.51 $ 22.02
 

Weighted Average Yield on Fair Value

13.9% 14.2%
Income Highlights
($ in millions, except per share amounts)
    Three Months Ended   Three Months Ended

June 30, 2012

June 30, 2011

Total   Per Share

Total

  Per Share
Investment Income $ 34.8 $ 0.95 $ 35.3 $ 0.97
 
Net Investment Income (NII) $ 14.4* $ 0.39* $ 21.4 $ 0.59
Net Realized and Unrealized Gain (Loss) $ 1.7 $ 0.05 $ (9.0 ) $ (0.25 )
Net Income $ 16.1 $ 0.44 $ 12.4 $ 0.34

* Excluding expenses incurred relating to the Company’s new $485 million credit facility, the $75 million private notes, and other non-recurring expenses, net investment income would have been $20.5 million, or $0.56 per share.

“During the quarter, we significantly enhanced our liability structure and expanded our investment portfolio,” said Michael Gross, Chairman & CEO of Solar Capital Ltd. “Through these two strategic transactions, we increased our debt capacity, extended the average maturity, and reduced our overall borrowing costs. We also grew our investment portfolio by over $185 million, or 18%--a record volume for our franchise. Due to the ordinary course lag in timing between commitment and funding, the full benefit of our originations has not been reflected in second quarter’s NII. Based upon our current visibility, we expect third quarter recurring net investment income on the larger average investment portfolio to cover our dividend.”

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