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SOLAR CAPITAL LTD. (NASD: SLRC)
Last Trade
4:00 p.m. - 17.78
Change
 0.07 ( 0.40%)
Shares Traded
991
Day's Volume
103,073
Book Value
NA
Price/Book
NA
Beta
0.862
Day's Range
17.63 - 17.88
Prev Close
17.71
Open
17.65
52 Wk Range
7.4201 - 21.19
EPS
1.33
PE
13.37
Quarterly Div/Shr
0.41
Ex-Div
12/16/20
Yield
9.22%
Shares Out.
42.26M
Market Cap.
751.40M
  • 1 Year Stock Performance:

CAGR - Chart the growth of a $10K investment in SLRC

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Fri, 08 Jan 2021
21:30:00 +0000
Solar Capital Ltd. Schedules the Release of its Financial Results for the Quarter and Fiscal Year Ended December 31, 2020
NEW YORK, Jan. 08, 2021 (GLOBE NEWSWIRE) -- Solar Capital Ltd. (the “Company”) (NASDAQ: SLRC) today announced that it will release its financial results for the quarter and fiscal year ended December 31, 2020 on Wednesday, February 24, 2021 after the close of the financial markets. The Company will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Thursday, February 25, 2021.All interested parties may participate in the conference call by dialing (844) 889-7786 approximately 5-10 minutes prior to the call, international callers should dial (661) 378-9930. Participants should reference Solar Capital Ltd. and the participant passcode of 5479705 when prompted. A telephone replay will be available until March 11, 2021 and can be accessed by dialing (855) 859-2056 and using the passcode 5479705. International callers should dial (404) 537-3406. This conference call will also be broadcast live over the Internet and can be accessed by all interested parties through Solar Capital’s website, www.solarcapltd.com. To listen to the webcast, please go to the Company's website 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 of the webcast will be available soon after the call.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. A specialty finance company with expertise in several niche markets, the Company 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.Contact:Solar Capital Ltd. Richard Pivirotto 646-308-8770
Tue, 15 Dec 2020
15:21:44 +0000
Understanding Solar Capital's Ex-Dividend Date
On November 5, 2020, Solar Capital (NASDAQ:SLRC) announced shareholders can expect to receive a dividend payable on January 5, 2021. The stock will then go ex-dividend 1 business day(s) before the record date. Solar Capital, which has a current dividend per share of $0.41, has an ex-dividend date scheduled for December 16, 2020. That equates to a dividend yield of 10.09% at current price levels.The Significance Of An Ex-Dividend Date An ex-dividend date signals when a company's shares cease to trade with its current dividend payout. There is a small intermission period before the company announces a new dividend. Usually, a company's ex-dividend date falls one business day before its record date. Investors should keep this in mind when purchasing stocks because buying them on or after ex-dividend dates does not qualify them to receive the declared payment. Newly declared dividends go to shareholders who have owned that stock before the ex-dividend date. Most ex-dividend dates operate on a quarterly basis.Solar Capital's Dividend Performance Over the past year, Solar Capital has experienced no change regarding its dividend payouts and an overall upward trend regarding its yields. Last year on December 18, 2019 the company's payout was $0.41, which has returned to its value today. Solar Capital's dividend yield last year was 7.92%, which has since grown by 2.17%. Companies use dividend yields in different strategic ways. Some companies may opt to not give yields altogether to reinvest in themselves. Other companies may opt to increase or decrease their yield amounts to control how their shares circulate throughout the stock market.To read more news on Solar Capital click here.See more from Benzinga * Click here for options trades from Benzinga * Analyzing Universal Health Realty's Ex-Dividend Date * Ex-Dividend Date Insight: DoubleLine Inc Solns Fund(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Fri, 11 Dec 2020
23:00:44 +0000
Is SLRC A Good Stock To Buy Now?
After several tireless days we have finished crunching the numbers from nearly 817 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of September 30th. The results of that effort will be put on display in this article, as […]
Fri, 06 Nov 2020
01:10:01 +0000
Solar Capital (SLRC) Q3 Earnings and Revenues Lag Estimates
Solar Capital (SLRC) delivered earnings and revenue surprises of -2.86% and -6.21%, respectively, for the quarter ended September 2020. Do the numbers hold clues to what lies ahead for the stock?
Thu, 05 Nov 2020
21:05:00 +0000
Solar Capital Ltd. Announces Quarter Ended September 30, 2020 Financial Results; Declares Quarterly Distribution of $0.41 Per Share for Q4, 2020
Stable Net Asset Value Acquires Leasing Company to Broaden Specialty Finance PlatformNEW YORK, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Solar Capital Ltd. (NASDAQ: SLRC) (the “Company” or “Solar Capital”), today reported net investment income of $14.3 million, or $0.34 per share, for the third quarter 2020.At September 30, 2020, net asset value (NAV) was $20.14 per share, a slight increase from June 30, 2020.As of September 30, 2020, the Company’s portfolio was 100% performing.The Board declared a fourth quarter distribution of $0.41 per share payable on January 5, 2021 to stockholders of record as of December 17, 2020. The specific tax characteristics will be reported to stockholders on Form 1099 after the end of the calendar year.HIGHLIGHTS: At September 30, 2020: Comprehensive Investment portfolio* fair value: $1.49 billion Number of portfolio companies: 174 Net assets: $851.1 million Net asset value per share: $20.14 Net debt-to-equity: 0.56x Available capital**: $912 million, subject to borrowing base availabilityComprehensive Investment Portfolio Activity*** for the Quarter Ended September 30, 2020: Investments made during the quarter: $66.4 million Investments prepaid and sold during the quarter: $159.2 millionOperating Results for the Quarter Ended September 30, 2020:Net investment income: $14.3 million Net investment income per share: $0.34 Net realized and unrealized gain: $4.4 million Net increase in net assets from operations: $18.6 million Earnings per share: $0.44* The Comprehensive Investment Portfolio is comprised of Solar Capital Ltd.’s investment portfolio, Crystal Financial’s full portfolio (including its ownership of its SBIC), and NEF Holdings, LLC’s (“NEF”) full portfolio and excludes the fair value of the equity interests in Crystal Financial and NEF.** Please see Liquidity and Capital Resources.*** Includes investment activity through Crystal Financial (including its ownership of its SBIC), and NEF.         “I am pleased to report that our investment portfolio remains 100% performing, and we are confident in our borrowers’ ability to continue to weather the current economic challenges. We attribute our strong positioning to our focus on investing in first lien senior secured loans to companies in defensive industries, as well as our efforts to build a commercial finance platform consisting of diverse niche asset based financing strategies. Our specialty finance businesses have demonstrated resiliency during this crisis, and they are currently seeing an increase in new investment opportunities,” said Michael Gross, Co-CEO of Solar Capital.“With the acquisition of Kingsbridge Holdings, announced today, we expanded our commercial finance platform and suite of financing capabilities. Kingsbridge, a lessor of essential-use equipment to predominantly investment grade counterparties, provides Solar Capital with both an additional asset-based asset class as well as increased exposure to high quality obligors,” said Bruce Spohler, Co-CEO of Solar Capital. “We expect our debt and equity investments ‎in Kingsbridge to generate approximately $20 million of gross income in 2021."Conference Call and WebcastThe Company will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Friday, November 6, 2020. All interested parties may participate in the conference call by dialing (844) 889-7786 approximately 5-10 minutes prior to the call, international callers should dial (661) 378-9930. Participants should reference Solar Capital Ltd. and the participant passcode of 7796857 when prompted. A telephone replay will be available until November 20, 2020 and can be accessed by dialing (855) 859-2056 and using the passcode 7796857. International callers should dial (404) 537-3406. This conference call will also be broadcast live over the Internet and can be accessed by all interested parties through Solar Capital’s website, www.solarcapltd.com. To listen to the webcast, please go to the Company's website 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 of the webcast will be available soon after the call. Comprehensive Investment PortfolioInvestment ActivityDuring the three months ended September 30, 2020, Solar Capital had total originations of $66.4 million and repayments and amortization of $159.2 million across its four core business units: cash flow, asset-based, equipment finance, and life science lending, resulting in a net portfolio reduction of $92.8 million to the comprehensive portfolio.The investment activity of our Comprehensive Investment Portfolio for the quarter ended September 30, 2020 was as follows:  Comprehensive Investment Portfolio Activity(1) Q3 2020 (in millions) Asset ClassCash Flow LoansAsset-based Loans / Crystal Financial(2)Equipment Financings / NEF(3)Life Science LoansTotal Portfolio Activity Originations$19.4$30.1$11.8$5.1$66.4 Repayments / Amortization$33.6$86.7$37.4$1.5$159.2 Net Portfolio Activity($14.2)($56.6)($25.6)$3.6($92.8)        (1)Portfolio activity includes gross originations/repayments across each business unit. (2)Includes Crystal Financial’s full portfolio (and its ownership of its SBIC) and asset-based loans on the Company’s balance sheet. (3)Includes NEF’s full portfolio and NEF equipment financings on the Company’s balance sheet.     Portfolio Composition Our Comprehensive Investment Portfolio composition by business unit at September 30, 2020 was as follows:Comprehensive Investment Portfolio Composition (at fair value)AmountWeighted Average  ($mm)%Asset Yield Cash Flow Senior Secured Loans$294.419.7%8.5%(5) Asset-Based Senior Secured Loans / Crystal Financial(1)$530.435.5%11.0%(6) Equipment Senior Secured Financings / NEF(2)$328.222.0%10.3%(7) Life Science Senior Secured Loans$323.021.7%9.7%(8) Total Senior Secured Loans$1,476.098.9%10.1% Equity and Equity-like Securities(3)$15.71.1%  Total Comprehensive Investment Portfolio$1,491.7100.0%  Floating Rate Investments(4) $1,143.877.1%  First Lien Senior Secured Loans$1,357.491.0%  Second Lien Senior Secured Cash Flow Loans$62.64.2%  Second Lien Senior Secured Asset-Based Loans$56.03.8%       (1)Includes Crystal Financial’s full portfolio, including the Company’s pro rata ownership of Crystal’s SBIC, and asset-based loans on the Company’s balance sheet. (2)Includes NEF’s full portfolio and NEF equipment financings on the Company’s balance sheet. (3)Excludes Crystal and NEF, which distribute quarterly cash dividends to the Company. (4)Floating rate investments calculated as a percent of the Company’s income-producing Comprehensive Investment Portfolio. The majority of fixed rate loans are associated with NEF and are short in duration with average hold periods of 2.5 years. Additionally, NEF seeks to match-fund its fixed rate assets with fixed rate liabilities. (5)Represents the weighted average of each individual loan’s yield to maturity based on fair market value at September 30, 2020. (6)Represents the weighted average of each individual loan’s internal rate of return for loans held at Crystal Financial and yield to maturity for loans held by SLRC. (7)Represents the weighted average of each individual loan’s yield to maturity (excluding residual upside on tax leases). Loans held on SLRC’s balance sheet based on fair value and loans owned within NEF Holdings based on fair value. (8)Represents the weighted average of each individual loan’s yield to maturity based on fair value at September 30, 2020 (excluding exit fees and warrants).    The Comprehensive Investment Portfolio is diversified across approximately 174 unique borrowers in nearly 80 industries and with an average exposure of $8.6 million, or 0.6% per issuer. At September 30, 2020, 99.0% of the Company’s Comprehensive Investment Portfolio was invested in senior secured loans, comprised of 91.0% first lien senior secured loans and approximately 8% second lien senior secured loans of which 4.2% were second lien cash flow loans and 3.8% were second lien asset-based loans.The weighted average yield at fair value of all income-producing investments in the Comprehensive Portfolio was 10.1% at September 30, 2020.Solar Capital Ltd. PortfolioAsset QualityAs of September 30, 2020, 100% on a fair value basis and cost basis of the Company’s portfolio was performing, with no investments on non-accrual status at quarter end.The Company puts its greatest emphasis on risk mitigation and credit performance. On a quarterly basis, or more frequently if deemed necessary, the Company formally rates each portfolio investment on a scale of one to four, with one representing the least amount of risk.As of September 30, 2020, the composition of our portfolio, on a risk ratings basis, was as follows:Internal Investment RatingInvestments at Fair Value ($mm)% of Total Portfolio 1$221.016.3% 2$1,068.379.0% 3$61.64.6% 4$1.00.1% Investment Income Contribution by Business UnitBusiness Unit Contribution to Gross Investment Income Q3 2020 (in millions) For the Period:Cash Flow Lending(1)Asset-based Lending / Crystal Financial(2)Equipment Financing / NEF(3)Life Science LendingTotal Q3 2020$6.8$8.9$4.5$8.7$28.9 % Contribution23.4%30.9%15.5%30.2%100%        (1)Includes interest income/fees from cash flow loans on balance sheet. (2)Includes interest income/fees from asset based loans on balance sheet and distributions from Crystal Financial. (3)Includes interest income/fees from equipment financings on balance sheet and distributions from NEF Holdings.    Solar Capital Ltd.’s Results of Operations for the Quarter Ended September 30, 2020 compared to the Quarter Ended September 30, 2019. Investment Income For the fiscal quarters ended September 30, 2020 and 2019, gross investment income totaled $28.9 million and $39.7 million, respectively. The decrease in gross investment income for the year over year period was generally due to a decrease in the size of the income-producing portfolio and the decline in the base reference rate.For the quarter ended September 30, 2020 cash interest and dividends represented over 96% of the Company’s $28.9 million Q3 2020 gross investment income.Expenses Expenses totaled $14.6 million and $21.3 million, respectively, for the quarters ended September 30, 2020 and 2019. The decrease in expenses for the year over year period was primarily due to lower management and incentive fees resulting from a reduction in portfolio yield on a smaller income producing investment portfolio on average.Net Investment Income The Company’s net investment income totaled $14.3 million and $18.4 million, or $0.34 and $0.44 per average share, respectively, for the fiscal quarters ended September 30, 2020 and 2019.Net Realized and Unrealized Gain (Loss)Net realized and unrealized gains (losses) for the fiscal quarters ended September 30, 2020 and 2019 totaled $4.4 million and ($4.7) million, respectively.Net Increase in Net Assets Resulting From Operations For the quarters ended September 30, 2020 and 2019, the Company had a net increase in net assets resulting from operations of $18.6 million and $13.7 million, respectively. For the quarters ended September 30, 2020 and 2019, earnings per average share were $0.44 and $0.32, respectively.Liquidity and Capital ResourcesUnsecured DebtAt September 30, 2020, approximately 86% of the Company’s funded debt, or $446 million, was comprised of fixed rate unsecured notes.Credit Facilities and Available CapitalAt September 30, 2020, the Company had no borrowings under its $545 million and $50 million revolving credit facilities and had approximately $47.5 million in cash on hand. When including undrawn capital on the Crystal and NEF Holdings, LLC non-recourse credit facilities, total available capital is $912 million, subject to borrowing base availability at September 30, 2020.LeverageOn September 30, 2020, the Company’s net debt-to-equity was 0.56x. Pro forma for the Kingsbridge acquisition, the Company’s net debt-to-equity was 0.77x at September 30, 2020. Solar Capital’s current leverage provides a significant cushion to its regulatory asset coverage limit of 2.0x debt-to-equity as well as its target leverage ratio of 0.9x – 1.25x.Unfunded Revolver CommitmentsAt September 30, 2020, Solar Capital had unfunded revolver commitments of approximately $16.5 million that can be fully drawn by the borrowers. Financial StatementsSOLAR CAPITAL LTD. CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except share amounts)  September 30, 2020 (unaudited) December 31, 2019 Assets   Investments at fair value:   Companies less than 5% owned (cost: $869,749 and $989,564, respectively)$853,984  $970,821  Companies more than 25% owned (cost: $513,098 and $513,119, respectively) 497,921   524,003  Cash 47,473   16,783  Cash equivalents (cost: $539,959 and $419,571, respectively) 539,959   419,571  Dividends receivable 6,006   10,488  Interest receivable 6,814   5,401  Receivable for investments sold 2,130   2,207  Prepaid expenses and other assets 663   615      Total assets$1,954,950  $1,949,889      Liabilities   Debt ($521,000 and $593,900 face amounts, respectively, reported net of unamortized debt issuance costs of $5,942 and $6,783, respectively)$514,058  $587,117  Payable for investments and cash equivalents purchased 556,108   419,662  Distributions payable 17,327   17,327  Management fee payable 6,176   6,747  Performance-based incentive fee payable —   4,281  Interest payable  6,310   3,678  Administrative services payable  2,018   2,757  Other liabilities and accrued expenses 1,860   2,440      Total liabilities$1,103,857  $1,044,009      Commitments and contingencies       Net Assets   Common stock, par value $0.01 per share, 200,000,000 and 200,000,000 common shares authorized, respectively, and 42,260,826 and 42,260,826 shares issued and outstanding, respectively$423  $423  Paid-in capital in excess of par 988,792   988,792  Accumulated distributable net loss (138,122)  (83,335)     Total net assets$851,093  $905,880      Net Asset Value Per Share$20.14  $21.44      SOLAR CAPITAL LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except share amounts)         Three months ended    September 30, 2020  September 30, 2019  INVESTMENT INCOME:      Interest:      Companies less than 5% owned$20,922  $27,019  Companies more than 25% owned1,355  1,523  Dividends:      Companies less than 5% owned14  19  Companies more than 25% owned6,094  10,145  Other income:      Companies less than 5% owned462  1,000  Companies more than 25% owned4  5         Total investment income28,851  39,711         EXPENSES:      Management fees$6,176  $6,738  Performance-based incentive fees—  4,606  Interest and other credit facility expenses6,510  7,529  Administrative services expense1,572  1,352  Other general and administrative expenses326  1,060         Total expenses14,584  21,285          Net investment income$14,267  $18,426          REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, CASH EQUIVALENTS AND DEBT:      Net realized loss on investments and cash equivalents:      Companies less than 5% owned$(278) $(52)               Net realized loss on investments, cash equivalents and debt (278)  (52)        Net change in unrealized gain (loss) on investments and cash equivalents:      Companies less than 5% owned2,903   (2,451) Companies more than 25% owned3,225   (2,206) Debt (1,500) —          Net change in unrealized gain (loss) on investments, cash equivalents and debt4,628   (4,657)         Net realized and unrealized gain (loss) on investments, cash equivalents and debt4,350   (4,709)        NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS$18,617  $13,717         EARNINGS PER SHARE$0.44  $0.32         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. A specialty finance company with expertise in several niche markets, the Company 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.Forward-Looking StatementsStatements included herein may constitute “forward-looking statements,” which relate to future events or the Company’s or Kingsbridge’s future performance or financial condition. These statements are not guarantees of the Company’s or Kingsbridge’s future performance, financial condition or results and involve a number of risks and uncertainties, including the impact of COVID-19 and related changes in base interest rates and significant market volatility on the Company’s or Kingsbridge’s business, portfolio companies and the global economy. Solar Capital and Kingsbridge operate in a very competitive and rapidly changing environment, in which new risks emerge from time to time. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: (i) Kingsbridge’s ability to maintain its historical financial performance, (ii) departures of key members of the Kingsbridge management team following closing, and (iii) material adverse changes to the portfolio of assets held by Kingsbridge as of or following the closing. For a more detailed discussion of factors related to Solar Capital's business, see the information under the caption "Risk Factors" in Solar Capital's most recent annual report on Form 10-K and its subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Solar Capital undertakes no duty to update any forward-looking statements made herein, unless required to do so by applicable law.Contact Solar Capital Ltd. Investor Relations (646) 308-8770
Thu, 05 Nov 2020
21:01:00 +0000
Solar Capital Ltd. Acquires Kingsbridge Holdings LLC; Expands Specialty Finance Platform
NEW YORK, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Solar Capital Ltd. (NASDAQ: SLRC) (the “Company” or “Solar Capital”) announced that on November 3, 2020, it acquired a majority stake in Kingsbridge Holdings LLC ("Kingsbridge") from TZP Capital Partners II, LP and its affiliates and the Kingsbridge management team. Kingsbridge, based in Lake Forest, Illinois, is a leading independent lessor of information technology, industrial, healthcare, and commercial essential-use equipment to a diverse set of high credit quality customers. With the acquisition, Solar Capital will have invested approximately $216 million, in a combination of approximately $136 million of equity and $80 million of debt, to acquire 87.5% of Kingsbridge in partnership with the Kingsbridge management team which is rolling a portion of their equity ownership as part of the transaction. The addition of Kingsbridge, with its highly experienced team and scalable infrastructure, further enhances the Company's diversified specialty finance platform. Solar Capital directly sources and underwrites cash flow, asset-based, and life science loans, and equipment financings; and now lease transactions with primarily investment grade rated counterparties. Pro forma for the Kingsbridge acquisition, approximately 84% of the Company’s comprehensive portfolio would have been comprised of specialty finance investments at September 30, 2020.Kingsbridge was founded in 2006 by the management team and has underwritten over $1 billion of leases since inception. At September 30, 2020, Kingsbridge’s highly diversified portfolio of leases totaled approximately $440 million, with an average funded exposure of approximately $850,000 per obligor, and was 100% performing. Over 70% of Kingsbridge’s portfolio is invested in assets leased by investment grade borrowers.Kingsbridge is expected to distribute substantially all of its net earnings on a quarterly basis. Solar Capital Partners LLC (“SCP”) anticipates the investment in Kingsbridge will generate a blended cash yield of 10% to 11% on average, consistent with SCP’s existing specialty finance strategies. The Company’s debt and equity investments in Kingsbridge are expected to generate approximately $20 million of gross income in 2021. These investments are also expected to be classified as qualifying assets for the Company. The acquisition is being funded with available capacity under Solar Capital's revolving credit facility, which currently carries an approximate marginal effective interest rate of 2.00%. Pro forma for the acquisition and based on the funded debt balance at September 30, 2020, Solar Capital's leverage would have been 0.77x debt-to-equity.“This acquisition furthers Solar Capital’s strategy of adding unique finance businesses to the platform,” said Mitch Soiefer, Partner and Head of Lender Finance at SCP, the Company’s investment advisor. "During our two year loan investment in Kingsbridge, we gained a deep understanding of the business and developed a good relationship with its phenomenal management team. We were able to see firsthand its strong track record which has continued through the COVID-19 crisis.”"Kingsbridge’s business model of providing leases for mission critical equipment complements our existing leasing business while providing Solar Capital with exposure to a new predominantly investment grade customer base,” said Cedric Henley, Partner and Chief Risk Officer of Specialty Finance for SCP. "Additionally, their sourcing capabilities enhance Solar Capital's ability to originate investments across multiple business lines in order to find the best risk reward while increasing the earnings power of the Company’s portfolio.”"We are excited about the opportunity to expand Kingsbridge’s relationship with Solar Capital and the growth opportunities our partnership provides the Kingsbridge platform going forward," said Dan Flagstad, Co-founder and Co-Chief Executive Officer of Kingsbridge. "Solar Capital's stable, long-term funding will enhance Kingsbridge’s ability to provide innovative financing solutions to its clients."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. A specialty finance company with expertise in several niche markets, the Company 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. For more information, please visit www.solarcapltd.com.About KingsbridgeKingsbridge Holdings is a leading independent lessor of information technology, industrial, healthcare, and commercial essential-use equipment to a diverse set of high credit quality customers. Kingsbridge provides intelligent, independent financing solutions and asset management expertise to help customers make informed decisions regarding equipment acquisition. With the view that every transaction requires customized attention, the firm's ability to bring superior structuring and transaction management offerings to its customers has made Kingsbridge a go-to source for leasing and financing solutions. Kingsbridge is based in Lake Forest, Illinois. For more information, please visit www.kingsbridgeholdings.com.Forward-Looking StatementsStatements included herein may constitute “forward-looking statements,” which relate to future events or the Company’s or Kingsbridge’s future performance or financial condition. These statements are not guarantees of the Company’s or Kingsbridge’s future performance, financial condition or results and involve a number of risks and uncertainties, including the impact of COVID-19 and related changes in base interest rates and significant market volatility on the Company’s or Kingsbridge’s business, portfolio companies and the global economy. Solar Capital and Kingsbridge operate in a very competitive and rapidly changing environment, in which new risks emerge from time to time. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: (i) Kingsbridge’s ability to maintain its historical financial performance, (ii) departures of key members of the Kingsbridge management team following closing, and (iii) material adverse changes to the portfolio of assets held by Kingsbridge as of or following the closing. For a more detailed discussion of factors related to Solar Capital's business, see the information under the caption "Risk Factors" in Solar Capital's most recent annual report on Form 10-K and its subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Solar Capital undertakes no duty to update any forward-looking statements made herein, unless required to do so by applicable law.Contact Solar Capital Ltd. Investor Relations (646) 308-8770
Thu, 29 Oct 2020
16:34:04 +0000
Analysts Estimate Solar Capital (SLRC) to Report a Decline in Earnings: What to Look Out for
Solar Capital (SLRC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Fri, 23 Oct 2020
19:00:35 +0000
25 Top-Paying Dividend Stocks That Will Make You Rich
These stocks offer incredible dividend yields.
Fri, 02 Oct 2020
13:46:08 +0000
3 Big Dividend Stocks Yielding Over 7%; Compass Point Says ‘Buy’
President Trump’s announcement that he has tested positive for the corona virus has grabbed headlines, but the dog that didn’t bark presents a more interesting point. Wall Street isn’t so worried about corona virus anymore; the perception is, that the virus will fade away or a vaccine will be developed, but in either case, the economy will improve.According to an RBC survey of portfolio managers, however, the coming November election presents a clear risk to the markets. A large majority of investors surveyed, 76%, worry that the election will be contested, resulting in weeks – possibly months – on uncertainty. And uncertainty is bad for the markets.Recent events, and some not-to-distant history, bear them out. For the history, we must only look back to 2000, when it took until December 12, and an appeal to the Supreme Court, to decide the results of the Florida recount. The S&P 500 slipped 5% during those weeks – and that was uncertainty caused by one state, recounting a limited number of votes. The point here is not that this election will be fraudulent or illegitimate. Rather, like Caesar’s wife, the election should be above the perception of impropriety – and this year, that bar may be too high. And then the challenges will begin. In the RBC survey, 83% of portfolio managers believed that such challenges, contesting the election results (from either direction) would be a net negative for the stock market. And only a small minority, 14%, believe that the final results will be known when the polls close on Election Day, November 3.And this is what brings us to dividend stocks today. When investors get nervous, they go looking for a way to protect their portfolios – and dividends, making the promise of a steady income stream, may be just the answer skittish shareholders are looking for.Analysts from research firm Compass Point agree. They have picked three stocks whose dividends are yielding 7% or more. We’ve pulled up the TipRanks data to find out what else makes these compelling buys in turbulent times.Saratoga Investment Corporation (SAR)We’ll start with Saratoga Investment Corporation, a mid-market investment management company that specializes in debt, appreciation, and equity investments. Saratoga has over $480 million in assets under management, and its portfolio includes home security, industry, software, and waste disposal. The variety, and the stocks chosen, are designed to give the company a resilient income stream.That doesn’t mean that Saratoga has been able to dodge the corona bullet. The company saw revenues turn negative in Q2, and has seen EPS slip from 61 cents in the first quarter to 51 cents in the second. As a result, Saratoga announced that it was deferring its fiscal Q4 dividend, as a cash-saving measure during the pandemic crisis.Saratoga, in July, declared its fiscal Q1 dividend for 40 cents per common share – and paid it out in August. There are grounds for confidence. The company has $9 million in committed, but undrawn, lending available, along with $155 million in available credit facilities, a new $43.1 million baby bond issue, and $282 million equity – all set against just $60 million in long-term debt.As for the restored dividend, while down 28% from the company’s last dividend payment, the new distribution reflects Saratoga’s liquidity position. The current payment annualizes to $1.60, and gives a yield of 9.2%, or more than 4.5x the average yield found among S&P-listed companies.Covering the stock for Compass Point, analyst Casey Alexander writes of the new dividend, “[With] the dividend now officially reset at $0.40 per quarter, it's time to make lemonade from the lemons investors were handed… In our view, while we may not be done with credit issues, SAR has set the dividend at a level that allows the BDC to return to the pattern of QoQ dividend increases as the current earnings power of the BDC well exceeds the level of the new dividend.”Taking everything into account, Alexander rates SAR stock a Buy, and gives it a $19.75 price target implying an upside of 16% for the coming year. (To watch Alexander’s track record, click here)Overall, Saratoga gets a unanimous Strong Buy rating from the analyst consensus, based on 3 recent positive reviews. The shares are selling for $17.02 and have an average price target of $22.58, slightly more bullish than Alexander’s and suggesting a one-year upside of ~33%. (See SAR stock analysis on TipRanks)Solar Capital, Ltd. (SLRC)The next stock on our list, Solar Capital, is an investor in senior secured loans and subordinated debt, with an investment portfolio of middle-market companies. The company puts capital into investment-grade loan instruments, making additional financing available to its customer base. Solar Capital has a portfolio worth $1.4 billion invested in 183 companies across 80 business sectors.Solar Capital has been able to keep earnings positive during the ‘corona half,’ despite a sharp fall in the bottom line for Q1 and Q2. In a bright spot, revenues, which turned negative in Q1, were back to positive in Q2, and projections for Q3 earnings show that the fall-off is either slowing or stopping – we will find out which in the Q3 report on November 5.Through all of this uncertainty, Solar Capital has kept up its stable dividend. The company has a 7-year history of reliable dividend payments, and the current quarterly dividend of 41 cents has been paid out consistently for the last 11 quarters. At an annualized payment of $1.64, the dividend currently yields 10.5%. In a time of near-zero official interest rate policy, this gives SLRC an enviable return.Compass Point's Casey Alexander, who also covers SAR, points out that SLRC’s dividend is the main attraction for investors – and that management has cultivated it for just that purpose. “Management stated their intention to continue to pay the $0.41 per share dividend because they believe there is visibility to dividend coverage as they begin to originate new assets at higher spreads. This is the environment that SLRC has been waiting for, and has been the principal reason for maintaining an under-leveraged posture for the last several years,” Alexander noted.With dividend coverage visible ahead, Alexander gives SLRC a Buy rating. His price target, at $17.75, indicates confidence in a 12% upside potential.This is another stock with a unanimous Strong Buy consensus rating. SLRC is sitting pretty with 5 positive reviews on record. The average price target is $18.20, representing a ~15% upside from the current share price of $15.86. (See SLRC stock analysis on TipRanks)First Hawaiian (FHB)Our last stock today, First Hawaiian, is the holding company owning the First Hawaiian Bank. First Hawaiian offers the usual array of banking services to retail and commercial customers, with 53 branches throughout the Hawaiian Islands along with three others in Guam and two on Saipan. Banking services include loans, deposit accounts, credit and debit cards, mortgages, insurance, and retirement plans.The recently ended second-quarter showed some mixed results. Top line revenues showed a sequential slip, from $164 million to $152 million, but that was mild compared to the 46% drop in earnings. EPS for Q2 came in at 16 cents, on $20 million in net income. Bright spots for the quarter were total loans, which grew 3% to $383 million, and deposit balances, which increased 13% sequentially to reach $2.3 billion. The bank’s total assets at the end of 2Q20 were $23 billion, up 10% from the end of the first quarter.That is the background behind management’s July dividend declaration. The company Board approved a 26-cent regular quarterly dividend, which was paid out in early September. At $1.04 annualized, this dividend yields 7.2%, putting it well above the average yield – and far higher than the current yield on Treasury bonds. FHB has a 4-year history of reliable dividend payments, and the current declaration marks the seventh quarter in a row at the current level.Compass Point analyst Laurie Havener Hunsicker believes a macro look at FHB justifies a bullish stance. “FHB was a clear outperformer on credit during the last crisis. While past results do not dictate future performance, we are impressed with the FHB management team and their credit culture; further, we believe that FHB is well-postured to again outperform on credit during the COVID-19 crisis,” the analyst noted.In line with her comments, Hunsicker rates FHB a Buy and sets a $21 price target that suggests room for a robust share appreciation of 46% over the next year. (To watch Hunsicker’s track record, click here)However, Wall Street is unsure on FHB, and the analysts are evenly divided, with recent reviews coming in at 1 Buy, 1 Hold, and 1 Sell – for an analyst consensus rating of Hold. FHB shares are selling for $14.42 and have an average price target of $16.67, making the upside potential 15%. (See First Hawaiian’s stock analysis at TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Wed, 30 Sep 2020
20:48:00 +0000
Solar Capital Ltd. Schedules the Release of its Financial Results for the Quarter Ended September 30, 2020
Solar Capital Ltd. (the “Company”) (NASDAQ: SLRC) today announced that it will release its financial results for the quarter ended September 30, 2020 on Thursday, November 5, 2020 after the close of the financial markets. The Company will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Friday, November 6, 2020. All interested parties may participate in the conference call by dialing (844) 889-7786 approximately 5-10 minutes prior to the call, international callers should dial (661) 378-9930.
Tue, 04 Aug 2020
23:25:11 +0000
Solar Capital (SLRC) Q2 Earnings and Revenues Lag Estimates
Solar Capital (SLRC) delivered earnings and revenue surprises of -2.86% and -6.16%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?
Tue, 04 Aug 2020
20:15:00 +0000
Solar Capital Ltd. Announces Quarter Ended June 30, 2020 Financial Results; Declares Quarterly Distribution of $0.41 Per Share for Q3, 2020
Reports Net Asset Value Per Share Increase of 4.5% Net Debt-to-Equity of 0.59x100% of Portfolio PerformingNEW YORK, Aug. 04, 2020 (GLOBE NEWSWIRE) -- Solar Capital Ltd. (NASDAQ: SLRC) (the “Company” or “Solar Capital”), today reported net investment income of $14.2 million, or $0.34 per share, for the second quarter 2020.At June 30, 2020, net asset value (NAV) was $20.11 per share, an increase of 4.5% from March 31, 2020.As of June 30, 2020, the Company’s portfolio was 100% performing.The Board declared a third quarter distribution of $0.41 per share payable on October 2, 2020 to stockholders of record as of September 17, 2020. The specific tax characteristics will be reported to stockholders on Form 1099 after the end of the calendar year.HIGHLIGHTSAt June 30, 2020: Comprehensive Investment portfolio* fair value: $1.58 billion Number of portfolio companies: 183 Net assets: $849.8 million Net asset value per share: $20.11 Net debt-to-equity: 0.59x Available capital**: $815 million, subject to borrowing base availabilityComprehensive Investment Portfolio Activity*** for the Quarter Ended June 30, 2020: Investments made during the quarter: $103.2 million Investments prepaid and sold during the quarter: $118.4 millionOperating Results for the Quarter Ended June 30, 2020:Net investment income: $14.2 million Net investment income per share: $0.34 Net realized and unrealized gain: $39.8 million Net increase in net assets from operations: $54.0 million Earnings per share: $1.28* The Comprehensive Investment Portfolio is comprised of Solar Capital Ltd.’s investment portfolio, Crystal Financial’s full portfolio (including its ownership of its SBIC), and NEF Holdings, LLC’s (“NEF”) full portfolio and excludes the fair value of the equity interests in Crystal Financial and NEF.** Please see Liquidity and Capital Resources.*** Includes investment activity through Crystal Financial (including its ownership of its SBIC), and NEF.       “The combination of our specialty finance businesses and focus on first lien senior secured investments in defensive industries has resulted in a diversified portfolio that is 100% performing at June 30, 2020. We believe we are well positioned to weather the current crisis,” said Michael Gross, Co-CEO of Solar Capital. “At quarter end, over 80% of our comprehensive portfolio was invested in loans in our asset-based and specialty finance strategies with collateral support which should provide meaningful downside protection.”“The conservative management of our assets and liabilities has resulted in a solid portfolio foundation, a stable funding profile, low leverage, strong liquidity, and favorable positioning to make new investments,” said Bruce Spohler, Co-CEO of Solar Capital. “Our pipeline of investments as well as new specialty finance platform acquisition opportunities is expanding. Together with our significant available capital, we expect to grow our net investment income in the coming quarters.”Conference Call and WebcastThe Company will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Wednesday, August 5, 2020. All interested parties may participate in the conference call by dialing (844) 889-7786 approximately 5-10 minutes prior to the call, international callers should dial (661) 378-9930. Participants should reference Solar Capital Ltd. and the participant passcode of 6667784 when prompted. A telephone replay will be available until August 19, 2020 and can be accessed by dialing (855) 859-2056 and using the passcode 6667784. International callers should dial (404) 537-3406. This conference call will also be broadcast live over the Internet and can be accessed by all interested parties through Solar Capital’s website, www.solarcapltd.com. To listen to the webcast, please go to the Company's website 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 of the webcast will be available soon after the call.Comprehensive Investment PortfolioInvestment ActivityDuring the three months ended June 30, 2020, Solar Capital had total originations of $103.2 million and repayments and amortization of $118.4 million across its four core business units: cash flow, asset-based, equipment finance, and life science lending, resulting in a net portfolio reduction of $15.2 million to the comprehensive portfolio.The investment activity of our Comprehensive Investment Portfolio for the quarter ended June 30, 2020 was as follows:Comprehensive Investment Portfolio Activity(1) Q2 2020 (in millions) Asset ClassCash Flow LoansAsset-based Loans / Crystal Financial(2)Equipment Financings / NEF(3)Life Science LoansTotal Portfolio Activity Originations$6.3$56.6$7.8$32.5$103.2 Repayments / Amortization$7.4$91.9$17.6$1.5$118.4 Net Portfolio Activity($1.1)($35.3)($9.8)$31.0($15.2)        (1) Portfolio activity includes gross originations/repayments across each business unit. (2) Includes Crystal Financial’s full portfolio (and its ownership of its SBIC) and asset-based loans on the Company’s balance sheet. (3) Includes NEF’s full portfolio and NEF equipment financings on the Company’s balance sheet.Portfolio Composition Our Comprehensive Investment Portfolio composition by business unit at June 30, 2020 was as follows:Comprehensive Investment Portfolio Composition (at fair value)AmountWeighted Average Asset Yield  ($mm)% Cash Flow Senior Secured Loans$305.519.4%8.6%(5) Asset-Based Senior Secured Loans / Crystal Financial(1)$586.937.2%10.2%(6) Equipment Senior Secured Financings / NEF(2)$349.922.2%10.4%(7) Life Science Senior Secured Loans$318.020.2%9.8%(8) Total Senior Secured Loans$1,560.399.0%9.9% Equity and Equity-like Securities(3)$16.01.0%  Total Comprehensive Investment Portfolio$1,576.3100.0%  Floating Rate Investments(4) $1,205.476.9%  First Lien Senior Secured Loans$1,443.291.6%  Second Lien Senior Secured Cash Flow Loans$61.03.9%  Second Lien Senior Secured Asset-Based Loans$56.03.6%  (1) Includes Crystal Financial’s full portfolio, including the Company’s pro rata ownership of Crystal’s SBIC, and asset-based loans on the Company’s balance sheet. (2) Includes NEF’s full portfolio and NEF equipment financings on the Company’s balance sheet. (3) Excludes Crystal and NEF, which distribute quarterly cash dividends to the Company. (4) Floating rate investments calculated as a percent of the Company’s income-producing Comprehensive Investment Portfolio. The majority of fixed rate loans are associated with NEF and are short in duration with average hold periods of 2.5 years. Additionally, NEF seeks to match-fund its fixed rate assets with fixed rate liabilities. (5) Represents the weighted average of each individual loan’s yield to maturity based on fair market value at June 30, 2020. (6) Represents the weighted average of each individual loan’s internal rate of return for loans held at Crystal Financial and yield to maturity for loans held by SLRC. (7) Represents the weighted average of each individual loan’s yield to maturity (excluding residual upside on tax leases). Loans held on SLRC’s balance sheet based on fair value and loans owned within NEF Holdings based on par. (8) Represents the weighted average of each individual loan’s yield to maturity based on fair value at June 30, 2020 (excluding exit fees and warrants).The Comprehensive Investment Portfolio is diversified across approximately 183 unique borrowers in over 80 industries and with an average exposure of $8.6 million, or 0.5% per issuer.At June 30, 2020, 99.0% of the Company’s Comprehensive Investment Portfolio was invested in senior secured loans, comprised of 91.6% first lien senior secured loans and approximately 7.5% second lien senior secured loans of which 3.9% were second lien cash flow loans and 3.6% were second lien asset-based loans.The weighted average yield at fair value of all income-producing investments in the Comprehensive Portfolio was 9.9% at June 30, 2020.Solar Capital Ltd. PortfolioAsset QualityAs of June 30, 2020, 100% on a fair value basis and cost basis of the Company’s portfolio was performing, with no investments on non-accrual status at quarter end.The Company puts its greatest emphasis on risk mitigation and credit performance. On a quarterly basis, or more frequently if deemed necessary, the Company formally rates each portfolio investment on a scale of one to four, with one representing the least amount of risk.As of June 30, 2020, the composition of our portfolio, on a risk ratings basis, was as follows:Internal Investment RatingInvestments at Fair Value ($mm)% of Total Portfolio 1$213.015.7% 2$1,045.276.9% 3$101.07.4% 4$0.8>0.0% Investment Income Contribution by Business UnitBusiness Unit Contribution to Gross Investment Income Q2 2020 (in millions) For the Period:Cash Flow Lending(1)Asset-based Lending / Crystal Financial(2)Equipment Financing / NEF(3)Life Science LendingTotal Q2 2020$6.9$9.0$4.6$8.1$28.6 % Contribution24.0%31.4%16.2%28.4%100%        (1) Includes interest income/fees from cash flow loans on balance sheet. (2) Includes interest income/fees from asset based loans on balance sheet and distributions from Crystal Financial. (3) Includes interest income/fees from equipment financings on balance sheet and distributions from NEF Holdings.Solar Capital Ltd.’s Results of Operations for the Quarter Ended June 30, 2020 compared to the Quarter Ended June 30, 2019.Investment Income For the fiscal quarters ended June 30, 2020 and 2019, gross investment income totaled $28.6 million and $38.7 million, respectively. The decrease in gross investment income for the year over year period was generally due to a decrease in the size of the income-producing portfolio and the decline in the base reference rate.For the quarter ended June 30, 2020 cash interest and dividends represented over 95% of the Company’s $28.6 million Q2 2020 gross investment income.Expenses Expenses totaled $14.4 million and $20.3 million, respectively, for the quarters ended June 30, 2020 and 2019. The decrease in expenses for the year over year period was primarily due to lower management and incentive fees resulting from a reduction in portfolio yield on a smaller income producing investment portfolio on average.Net Investment Income The Company’s net investment income totaled $14.2 million and $18.4 million, or $0.34 and $0.44 per average share, respectively, for the fiscal quarters ended June 30, 2020 and 2019.Net Realized and Unrealized GainNet realized and unrealized gains for the fiscal quarters ended June 30, 2020 and 2019 totaled $39.8 million and $1.2 million, respectively.Net Increase in Net Assets Resulting From Operations For the quarters ended June 30, 2020 and 2019, the Company had a net increase in net assets resulting from operations of $54.0 million and $19.6 million, respectively. For the quarters ended June 30, 2020 and 2019, earnings per average share were $1.28 and $0.46, respectively.Liquidity and Capital ResourcesUnsecured Debt At June 30, 2020, approximately 86% of the Company’s funded debt, or $446 million, was comprised of fixed rate unsecured notes.Credit Facilities and Available CapitalAt June 30, 2020, the Company had no borrowings under its $545 million and $50 million revolving credit facilities and had approximately $18 million in cash on hand. When including undrawn capital on the Crystal and NEF Holdings, LLC non-recourse credit facilities, total available capital is $815 million, subject to borrowing base availability at June 30, 2020.LeverageOn June 30, 2020, the Company’s net debt-to-equity was 0.59x. Solar Capital’s current leverage provides a significant cushion to its regulatory asset coverage limit of 2.0x debt-to-equity as well as its target leverage ratio of 0.9x – 1.25x.Unfunded Revolver Commitments At June 30, 2020, Solar Capital had unfunded revolver commitments of approximately $17 million that can be fully drawn by the borrowers. Financial Statements and TablesSOLAR CAPITAL LTD. CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except share amounts)  June 30, 2020 (unaudited)  December 31, 2019  Assets        Investments at fair value:        Companies less than 5% owned (cost: $885,242 and $989,564, respectively)$866,575  $970,821  Companies more than 25% owned (cost: $511,835 and $513,119, respectively) 493,432   524,003  Cash 18,170   16,783  Cash equivalents (cost: $549,904 and $419,571, respectively) 549,904   419,571  Dividends receivable 6,194   10,488  Interest receivable 6,384   5,401  Receivable for investments sold 1,651   2,207  Prepaid expenses and other assets 764   615      Total assets$1,943,074  $1,949,889      Liabilities   Debt ($521,000 and $593,900 face amounts, respectively, reported net of unamortized debt issuance costs of $6,220 and $6,783, respectively.)$512,280  $587,117  Payable for investments and cash equivalents purchased 550,795   419,662  Distributions payable 17,327   17,327  Management fee payable 5,971   6,747  Performance-based incentive fee payable —   4,281  Interest payable 3,301   3,678  Administrative services payable 1,086   2,757  Other liabilities and accrued expenses 2,511   2,440      Total liabilities$1,093,271  $1,044,009      Commitments and contingencies       Net Assets   Common stock, par value $0.01 per share, 200,000,000 and 200,000,000 common shares authorized, respectively, and 42,260,826 and 42,260,826 shares issued and outstanding, respectively$423  $423  Paid-in capital in excess of par 988,792   988,792  Accumulated distributable net loss (139,412)  (83,335)     Total net assets$849,803  $905,880      Net Asset Value Per Share$20.11  $21.44      SOLAR CAPITAL LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except share amounts)  Three months ended  June 30, 2020  June 30, 2019  INVESTMENT INCOME:        Interest:        Companies less than 5% owned$20,573  $26,848  Companies more than 25% owned 1,339   1,342  Dividends:   Companies less than 5% owned 10   10  Companies more than 25% owned 6,215   8,747  Other income:   Companies less than 5% owned 485   1,731  Companies more than 25% owned 3   4      Total investment income$28,625  $38,682      EXPENSES:   Management fees$5,971  $6,727  Performance-based incentive fees —   4,608  Interest and other credit facility expenses 6,623   7,101  Administrative services expense 1,148   1,293  Other general and administrative expenses 682   521  Total expenses 14,424   20,250      Net investment income$14,201  $18,432      REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, CASH EQUIVALENTS, DEBT AND UNFUNDED COMMITMENTS:   Net realized gain (loss) on investments and cash equivalents:   Companies less than 5% owned$(24,794) $202  Companies more than 25% owned —   (98)     Net realized gain (loss) on investments and cash equivalents (24,794)  104      Net change in unrealized gain (loss) on investments, cash equivalents and unfunded commitments and net change in unrealized (gain) loss on debt:   Companies less than 5% owned 47,491   (2,356) Companies more than 25% owned 25,787   3,451  Debt (9,000)  —  Unfunded commitments 361   —      Net change in unrealized gain (loss) on investments, cash equivalents, debt and unfunded commitments 64,639   1,095      Net realized and unrealized gain on investments, cash equivalents, debt and unfunded commitments 39,845   1,199  NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS  $54,046  $19,631      EARNINGS PER SHARE $1.28  $0.46  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. A specialty finance company with expertise in several niche markets, the Company 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.Forward-Looking StatementsStatements 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 our future performance, financial condition or results and involve a number of risks and uncertainties, including the impact of COVID-19 and related changes in base interest rates and significant market volatility on our business, our portfolio companies and the global economy. 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 Capital Ltd. undertakes no duty to update any forward-looking statements made herein, unless required to do so by applicable law.Contact Solar Capital Ltd. Investor Relations (646) 308-8770
Thu, 23 Jul 2020
13:38:14 +0000
Solar Capital Ltd. -- Moody's announces completion of a periodic review of ratings of Solar Capital Ltd.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Solar Capital Ltd. New York, July 23, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Solar Capital Ltd. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Thu, 02 Jul 2020
20:01:10 +0000
Solar Capital Ltd. Schedules the Release of its Financial Results for the Quarter Ended June 30, 2020
Solar Capital Ltd. (the “Company”) (SLRC) today announced that it will release its financial results for the quarter ended June 30, 2020 on Tuesday, August 4, 2020 after the close of the financial markets. The Company will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Wednesday, August 5, 2020. All interested parties may participate in the conference call by dialing (844) 889-7786 approximately 5-10 minutes prior to the call, international callers should dial (661) 378-9930.
Sat, 27 Jun 2020
18:28:09 +0000
Hedge Funds Are Selling Solar Capital Ltd. (SLRC)
In this article you are going to find out whether hedge funds think Solar Capital Ltd. (NASDAQ:SLRC) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]
Tue, 16 Jun 2020
01:12:06 +0000
Edited Transcript of SLRC.OQ earnings conference call or presentation 8-May-20 2:00pm GMT
Q1 2020 Solar Capital Ltd Earnings Call
Wed, 20 May 2020
15:41:58 +0000
3 “Strong Buy” Dividend Stocks Yielding at Least 10%
With unemployment rising to 15%, and the grim corporate earnings seasons wrapping up, investors may struggle to keep up the relatively buoyant mood that has boosted markets in recent weeks. Writing from JPMorgan, global market strategist Samantha Azzarello has commented on the apparent performance disconnect between the markets and the economy. “I think the volatility right now is tied to a bunch of different things whether we’re going up or going down -- right it’s vaccine news, it’s treatment news, it’s Jay Powell speaking... I still think though there’s a little bit of a disconnect between the real side of the economy and what’s happening with the macro data, in particular the labor market…”It’s a situation tailor made for defensive stocks. High-yield dividend plays are getting lots of love from Wall Street’s corps of stock analysts, and are showing high upside potential as investors move toward them. These are the stocks that pad a portfolio, providing an income stream capable of compensating for low share appreciation. Using TipRanks database, we’ve found three low-cost dividend plays that are yielding 10% or better. If that's not enough, all three received enough support from Wall Street analysts to earn a “Strong Buy” consensus rating.Starwood Property Trust (STWD)We’ll start with a real estate investment trust, a safe place to look for high-yield dividends. These companies are required by tax codes to return a certain percentage of profits and earnings directly to shareholders, and dividend payments are the common method. Starwood, which both originates and invests in commercial mortgage loans and other commercial real estate debt investments and instruments, is typical of the niche, as shown by the 90% dividend payout ratio.Starwood posted strong Q1 beat recently. Earnings came in at 53 cents against a 46-cent forecast. The 15% earnings beat came in a quarter when most companies were struggling to cope with the effects of the coronavirus pandemic, and reports of steep misses were common.The solid earnings have supported a solid dividend. We’ve already noted the high payout ratio – the actual dividend payment is 48 cents per share quarterly, and has been paid out reliably for the past seven years. The yield, at 15.2%, is simply excellent – and it shows the value of a reliable dividend stock. Dividend yields in the financial sector average 2.16%, so simple arithmetic shows that STWD returns more than 7x that rate.Deutsche Bank’s analyst George Bahamondes gives STWD shares a Buy rating, and his $17 price target suggests an upside potential of 32%. (To watch Bahamondes’ track record, click here)Justifying his bullish stance, the analyst noted, “We continue to believe STWD's diversified business model allows the company to allocate capital to strategies that generate the best risk adjusted returns for shareholders... Importantly, the company's business model has also been central to the STWD's diversified capital structure, insulating the company from liquidity issues to a better degree than peers. In an environment mired with uncertainty, capital allocation optionality is valuable…”The group wisdom on Wall Street is in concurrence with Bahamondes; STWD shares have a unanimous Strong Buy consensus rating, based on 5 recent Buy reviews. The average price target of $16.88 is also in line with Bahamondes’, and indicates about 32% upside for the coming year. (See Starwood stock analysis on TipRanks)Cherry Hill Mortgage (CHMI)Based in, and operating in, the state of New Jersey, Cherry Hill Mortgage is another REIT. Rather than buying properties directly, the company manages a portfolio of excess mortgage services rights, agency residential mortgage backed securities, and other mortgage assets.Unlike many companies in recent months, Cherry Hill has flat-out beaten expectations on earnings. In Q4, the company reported 48 cents EPS against a 44-cent forecast; in Q1, despite the coronavirus, CHMI showed 47 cents EPS after a 43-cent forecast. Q1 revenues, at $6.23 million, beat the forecast by an impressive 19%, and also grew 6% year-over-year. Earnings are estimated at 32 cents per share for Q2.CHMI shares pay out a 40-cent dividend, after a downward adjustment from 49 cents in Q3 2019. The adjustment kept the payment in line with earnings; important, since the payout ratio is a high 85%. The annualized payout, of $1.60, gives a stunning yield of 21.5%. There is simply no point in comparing that to peer companies; that return is head-and-shoulders higher than anything else an investor is likely to find in the financial markets.In his note on this stock, Piper Sandler analyst Kevin Barker says, “We expect CHMI to remain defensive in the near-term by reducing leverage and holding cash. We also assume prepay speeds will continue to accelerate over the next couple of quarters as mortgage rates push closer to 3.0% or lower. Meanwhile, the bump higher in interest expense to 2.33% should moderate with market volatility settling down.”Barker gives CHMI a $12 price target, which suggests room for a 52% upside to the stock. (To watch Barker’s track record, click here)Cherry Hill is another stock, like Starwood above, with a unanimous analyst consensus rating. In this case, the Strong Buy rating is based on 4 recent Buys. Shares are priced low, at $7.85, and the average price target of $11.41 implies a 12-month upside potential of 45%. (See Cherry Hill Mortgage stock analysis on TipRanks)Solar Capital, Ltd. (SLRC)Next up is a business development company, focusing on debt and equity investment in leveraged companies, generating income by pumping capital into client companies existing investment-grade loans. Solar Capital is one of the scores of financing companies that makes liquid capital available to mid-market firms.After a remarkably stable earnings run from Q3 2018 through Q3 2019, SLRC saw a sudden drop-off in EPS in Q4 and Q1. Both quarters missed expectations and saw sequential drops. Q4 EPS came in at 41 cents, against a 44-cent forecast, while Q1, hit by the coronavirus-inspired shutdowns, saw EPS slip again to 38 cents. It’s important to note, however, that SLRC remains in positive earnings territory, in contrast to the well-publicized earnings losses that have made headlines since Q1. Looking ahead, Solar Capital is expected to remain profitable in Q2, with a 35-cent EPS projected.Solar Capital uses its earnings to fund a generous dividend. The company has been growing the payment very gradually over the past seven years, and the current quarterly payment is 41 cents per share. At $1.64 annualized, this gives a yield of 10.6%. With dividend yields among S&P companies averaging 2%, and Treasury bonds down below 1%, the attraction of SLRC’s yield is obvious. The only bit of cloud is the 107% payout ratio, indicating that earnings do not cover the dividend – but with $60 million cash available, and a further $545 million on a revolving credit facility, the company sees no problem in maintaining the payments.Covering SLRC for JMP Securities, Christopher York sees SLRC taking a proactive role generating income moving forward. He writes, “[We expect] that the company will be very active in new originations in 4Q20 and 1Q21. We believe Solar continues to be a strategic buyer of niche commercial finance businesses, which could be an immediate use of investment capacity.”York’s Buy rating is supported by an $18.50 price target, which suggests a one-year upside of 19% for the stock. (To watch York’s track record, click here)The Wall Street analyst corps is bullish on SLRC, giving the stock 7 Buys against just one Hold. This adds up to an analyst consensus rating of Strong Buy. The average price target is a bit more cautious than York’s, at $17.57, and implies an upside of 13% for the coming year. (See Solar Capital stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Sun, 10 May 2020
07:00:58 +0000
Solar Capital (SLRC) Q1 2020 Earnings Call Transcript
SLRC earnings call for the period ending March 31, 2020.
Thu, 07 May 2020
20:10:57 +0000
Solar Capital Ltd. Announces Quarter Ended March 31, 2020 Financial Results; Declares Quarterly Distribution of $0.41 Per Share for Q2, 2020
Available Liquidity of $700 Million Net Leverage of 0.56x 100% of Portfolio Performing at Fair Value NEW YORK, May 07, 2020 -- Solar Capital Ltd. (NASDAQ: SLRC) (the.
Mon, 04 May 2020
12:55:00 +0000
Solar Capital Partners Adds Senior Professionals
Solar Capital Partners ("SCP") announces the addition of four senior professionals to expand SCP's investment and business development capabilities.

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