“We believe these divestitures meaningfully improve our overall investment portfolio composition by reducing issuer concentration, increasing our percentage investment in secured and floating rate debt securities, and eliminating substantially all of our payment-in-kind, or PIK, income,” said Michael Gross, Chairman and CEO of Solar Capital Ltd. “We believe the third fiscal quarter dividend approximates the run-rate earnings of our portfolio post these monetizations. We intend to seek to grow our investment income, and correspondingly our dividend, through the deployment of our over $500 million of available capital, which includes the proceeds from these monetizations.”The DS Waters transaction is subject to customary closing conditions and is expected to close in the next 90 days. Our Midcap Financial investment is expected to be repaid in July 2013. The third quarter dividend will be paid 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. The Company will release its financial results for the quarter ended June 30, 2013 on Wednesday, July 31, 2013, after the close of the financial markets, and will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Thursday, August 1, 2013. ABOUT SOLAR CAPITAL LTD. Solar 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. Solar Capital invests primarily in leveraged, middle market companies in the form of senior secured loans, mezzanine loans, and equity securities. FORWARD-LOOKING STATEMENTS Statements included herein may contain “forward-looking statements”, which relate to our future operations, future performance or our financial condition. Forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and outcomes may differ materially from those anticipated in the forward-looking statements as a result of a variety of factors, including those described from time to time in our filings with the Securities and Exchange Commission or factors that are beyond our control. Solar Capital Ltd. undertakes no obligation to publically update or revise any forward-looking statements made herein. All forward-looking statements speak only as of the time of this press release.
1 The internal rate of return, or IRR, is calculated using the XIRR function in Excel, based on the actual dates for all cash outflows and inflows associated with the investment, including cash interest payments, amendment fees, origination fees, expected escrow payments, and principal repayments.