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Solar Capital Ltd. (the “Company”) (NASDAQ: SLRC), today reports net investment income for the quarter ended June 30, 2013 of $19.3 million, or $0.43 per average share. At June 30, 2013, net asset value (NAV) per share was $22.40.
In addition, the Company has amended its $525 million credit facility to reduce the borrowing rate from LIBOR + 2.50% to LIBOR + 2.25% and extend the final maturity by two years to June, 2018. The size of the amended facility is $490 million and is expandable up to $800 million under its accordion feature. The Company has also extinguished its LIBOR + 2.75% $100 million credit facility maturing in 2015.
On July 24, the Company’s Board of Directors declared a third quarter dividend of $0.40 per share payable on October 2, 2013 to stockholders of record on September 19, 2013. The specific tax characteristics will be reported to stockholders on Form 1099 after the end of the calendar year.
Concurrent with the dividend declaration, the Company announced the expected monetization of its two largest legacy portfolio companies, DSW Group Inc. and MidCap Financial LLC, with total gross proceeds expected to be approximately $237 million.
Also today, July 31, 2013, the Company announced a share repurchase plan to purchase common stock in the open market in an amount up to $100 million.
At June 30, 2013:
Investment Portfolio: $1.4 billion
Number of Portfolio Companies: 41
Net Assets: $1.0 billion
Net Asset Value per share: $22.40
Portfolio Activity for the Quarter Ended June 30, 2013:
Investments made during the quarter: $101.3 million
Investments prepaid and sold during the quarter: $72.8 million
Operating Results for the Quarter Ended June 30, 2013:
Net investment income: $19.3 million
Net realized and unrealized losses: $19.3 million
Net increase (decrease) in net assets from operations: ($0.0) million
Net investment income per share: $0.43
"Post the completion of our announced expected legacy investment monetizations, we believe that our more diversified portfolio, comprised of a greater percentage invested in cash-pay, secured, and floating-rate debt securities, provides an attractive risk-adjusted return," said Michael Gross, Chairman and CEO of Solar Capital Ltd. "We intend to seek to grow our investment income per share by prudently deploying our over $500 million of available capital into new investments and opportunistic purchases of our common shares.”