Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(State of Incorporation) |
(I.R.S. Employer Identification No.) | |
(Address of principal executive offices) |
(Zip Code) |
Title of Each Class |
Trading Symbol(s) |
Name of Each Exchange on Which Registered | ||
| ☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Smaller Reporting company | ||||
| Emerging growth company | ||||||
Item 1. |
Financial Statements |
June 30, 2022 (unaudited) |
December 31, 2021 |
|||||||
| Assets |
||||||||
| Investments at fair value: |
||||||||
| Companies less than 5% owned (cost: $ |
$ | $ | ||||||
| Companies more than 25% owned (cost: $ |
||||||||
| Cash |
||||||||
| Cash equivalents (cost: $ |
||||||||
| Dividends receivable |
||||||||
| Interest receivable |
||||||||
| Receivable for investments sold |
||||||||
| Prepaid expenses and other assets |
||||||||
| |
|
|
|
|||||
| Total assets |
$ | $ | ||||||
| |
|
|
|
|||||
| Liabilities |
||||||||
| Debt ($ /market discount of $ |
$ | $ | ||||||
| Payable for investments and cash equivalents purchased |
||||||||
| Distributions payable |
||||||||
| Management fee payable (see note 3) |
||||||||
| Performance-based incentive fee payable (see note 3) |
||||||||
| Interest payable (see note 7) |
||||||||
| Administrative services payable (see note 3) |
||||||||
| Other liabilities and accrued expenses |
||||||||
| |
|
|
|
|||||
| Total liabilities |
$ | $ | ||||||
| |
|
|
|
|||||
| Commitments and contingencies (see note 10) |
||||||||
| Net Assets |
||||||||
| Common stock, par value $ |
$ | $ | ||||||
| Paid-in capital in excess of par |
||||||||
| Accumulated distributable net loss |
( |
) | ( |
) | ||||
| |
|
|
|
|||||
| Total net assets |
$ | $ | ||||||
| |
|
|
|
|||||
| Net Asset Value Per Share |
$ | $ | ||||||
| |
|
|
|
|||||
Three months ended |
Six months ended |
|||||||||||||||
June 30, 2022 |
June 30, 2021 |
June 30, 2022 |
June 30, 2021 |
|||||||||||||
INVESTMENT INCOME: |
||||||||||||||||
Interest: |
||||||||||||||||
Companies less than 5% owned |
$ | $ | $ | $ | ||||||||||||
Companies more than 25% owned |
||||||||||||||||
Dividends: |
||||||||||||||||
Companies less than 5% owned |
||||||||||||||||
Companies more than 25% owned |
||||||||||||||||
Other income: |
||||||||||||||||
Companies less than 5% owned |
||||||||||||||||
Companies more than 25% owned |
( |
) | ||||||||||||||
Total investment income |
||||||||||||||||
EXPENSES: |
||||||||||||||||
Management fees (see note 3) |
$ | $ | $ | $ | ||||||||||||
Performance-based incentive fees (see note 3) |
||||||||||||||||
Interest and other credit facility expenses (see note 7) |
||||||||||||||||
Administrative services expense (see note 3) |
||||||||||||||||
Other general and administrative expenses |
||||||||||||||||
Total expenses |
||||||||||||||||
Performance-based incentive fees waived (see note 3) |
( |
) | ( |
) | ||||||||||||
Net expenses |
||||||||||||||||
Net investment income |
$ | $ | $ | $ | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS: |
||||||||||||||||
| Net realized gain (loss) on investments and cash equivalents (companies less than 5% owned) |
$ | ( |
) | $ | |
$ | ( |
) | $ | |||||||
Net change in unrealized gain (loss) on investments and cash equivalents: |
||||||||||||||||
Companies less than 5% owned |
( |
) | ( |
) | ||||||||||||
Companies more than 25% owned |
( |
) | ( |
) | ||||||||||||
Net change in unrealized gain (loss) on investments and cash equivalents |
( |
) | ( |
) | ||||||||||||
Net realized and unrealized gain (loss) on investments and cash equivalents |
( |
) | ( |
) | ||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
EARNINGS (LOSS) PER SHARE (see note 5) |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
Three months ended |
Six months ended |
|||||||||||||||
June 30, 2022 |
June 30, 2021 |
June 30, 2022 |
June 30, 2021 |
|||||||||||||
Increase (decrease) in net assets resulting from operations: |
||||||||||||||||
Net investment income |
$ | $ | $ | $ | ||||||||||||
Net realized gain (loss) |
( |
) | ( |
) | ||||||||||||
Net change in unrealized gain (loss) |
( |
) | ( |
) | ||||||||||||
Net increase (decrease) in net assets resulting from operations |
( |
) | ( |
) | ||||||||||||
Distributions to stockholders: |
||||||||||||||||
From net investment income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Capital transactions : |
||||||||||||||||
Issuance of common stock |
||||||||||||||||
Total increase in net assets |
||||||||||||||||
Net assets at beginning of period |
||||||||||||||||
Net assets at end of period |
$ | $ | $ | $ | ||||||||||||
Capital stock activity : |
||||||||||||||||
Issuance of common stock |
||||||||||||||||
Six months ended |
||||||||
June 30, 2022 |
June 30, 2021 |
|||||||
Cash Flows from Operating Activities: |
||||||||
Net increase (decrease) in net assets resulting from operations |
$ | ( |
) | $ | ||||
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities: |
||||||||
Net realized (gain) loss on investments and cash equivalents |
( |
) | ||||||
Net change in unrealized (gain) loss on investments |
( |
) | ||||||
(Increase) decrease in operating assets: |
||||||||
Purchase of investments |
( |
) | ( |
) | ||||
Proceeds from disposition of investments |
||||||||
Net accretion of discount on investments |
( |
) | ( |
) | ||||
Capitalization of payment-in-kind |
( |
) | ( |
) | ||||
Collections of payment-in-kind |
||||||||
Receivable for investments sold |
||||||||
Interest receivable |
( |
) | ( |
) | ||||
Dividends receivable |
( |
) | ( |
) | ||||
Prepaid expenses and other assets |
( |
) | ( |
) | ||||
Cash acquired in merger |
||||||||
Increase (decrease) in operating liabilities: |
||||||||
Payable for investments and cash equivalents purchased |
||||||||
Management fee payable |
( |
) | ||||||
Performance-based incentive fee payable |
||||||||
Administrative services expense payable |
( |
) | ( |
) | ||||
Interest payable |
||||||||
Other liabilities and accrued expenses |
||||||||
Deferred financing costs/market discount |
||||||||
Net Cash Provided by Operating Activities |
||||||||
Cash Flows from Financing Activities: |
||||||||
Cash distributions paid |
( |
) | ( |
) | ||||
Proceeds from unsecured borrowings |
||||||||
Repayment of unsecured borrowings |
( |
) | ||||||
Proceeds from secured borrowings |
||||||||
Repayment of secured borrowings |
( |
) | ( |
) | ||||
Net Cash Used in Financing Activities |
( |
) | ( |
) | ||||
NET INCREASE IN CASH AND CASH EQUIVALENTS |
||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ | $ | ||||||
Supplemental disclosure of cash flow information: |
||||||||
Cash paid for interest |
$ | $ | ||||||
Issuance of shares in connection with the Merger (1) |
||||||||
| (1) | On April 1, 2022, in connection with the Merger (as defined in Note 1 “Organization”), the Company acquired net assets of $ |
| Description |
Industry |
Spread Above Index (7) |
Floor |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||||||||||
| Senior Secured Loans — |
||||||||||||||||||||||||||||||||||
| First Lien Bank Debt/Senior Secured Loans |
||||||||||||||||||||||||||||||||||
| Aegis Toxicology Sciences Corporation(18) |
% | % | $ | $ | $ | |||||||||||||||||||||||||||||
| All State Ag Parts, LLC(18) |
% | % | ||||||||||||||||||||||||||||||||
| American Teleconferencing Services, Ltd.** |
% | % | ||||||||||||||||||||||||||||||||
| American Teleconferencing Services, Ltd.** |
% | % | ||||||||||||||||||||||||||||||||
| AmeriMark Intermediate Holdings, LLC(14) |
% | % | ||||||||||||||||||||||||||||||||
| Atria Wealth Solutions, Inc |
% | % | ||||||||||||||||||||||||||||||||
| Basic Fun, Inc |
% | % | ||||||||||||||||||||||||||||||||
| BayMark Health Services, Inc.(18) |
% | % | ||||||||||||||||||||||||||||||||
| CC SAG Holdings Corp. (Spectrum Automotive)(18) |
% | % | ||||||||||||||||||||||||||||||||
| Composite Technology Acquisition Corp.(18) |
% | % | ||||||||||||||||||||||||||||||||
| DISA Holdings Acquisition Subsidiary Corp.(18) |
% | % | ||||||||||||||||||||||||||||||||
| Enhanced Permanent Capital, LLC(3) |
% | % | ||||||||||||||||||||||||||||||||
| ENS Holdings III Corp. & ES Opco USA LLC (Bluefin)(18) |
% | % | ||||||||||||||||||||||||||||||||
| Enverus Holdings, Inc. (fka Drilling Info Holdings)(18) |
% | |||||||||||||||||||||||||||||||||
| Erie Construction Mid-west, LLC(18) |
% | % | ||||||||||||||||||||||||||||||||
| Foundation Consumer Brands, LLC(18) |
% | % | ||||||||||||||||||||||||||||||||
| GSM Acquisition Corp.(18) |
% | % | ||||||||||||||||||||||||||||||||
| Higginbotham Insurance Agency, Inc.(18) |
% | % | ||||||||||||||||||||||||||||||||
| High Street Buyer, Inc.(18) |
% | % | ||||||||||||||||||||||||||||||||
| Human Interest Inc |
% | % | ||||||||||||||||||||||||||||||||
| iCIMS, Inc. |
% | % | ||||||||||||||||||||||||||||||||
| Inszone Mid, LLC |
% | % | ||||||||||||||||||||||||||||||||
| Ivy Fertility Services, LLC |
% | % | ||||||||||||||||||||||||||||||||
| Kaseya, Inc |
% | % | ||||||||||||||||||||||||||||||||
| Kid Distro Holdings, LLC (Distro Kid) |
% | % | ||||||||||||||||||||||||||||||||
| Kingsbridge Holdings, LLC(2) |
% | % | ||||||||||||||||||||||||||||||||
| KORE Wireless Group, Inc.(18) |
% | |||||||||||||||||||||||||||||||||
| Logix Holding Company, LLC(18) |
% | % | ||||||||||||||||||||||||||||||||
| Maurices, Incorporated(18) |
% | % | ||||||||||||||||||||||||||||||||
| MMIT Holdings, LLC |
% | % | ||||||||||||||||||||||||||||||||
| NAC Holdings Corporation (Jaguar)(18) |
% | % | ||||||||||||||||||||||||||||||||
| National Spine and Pain Centers, LLC |
% | % | ||||||||||||||||||||||||||||||||
| OIS Management Services, LLC |
% | % | ||||||||||||||||||||||||||||||||
| One Touch Direct, LLC |
% | |||||||||||||||||||||||||||||||||
| Peter C. Foy & Associates Insurance Services, LLC |
% | % |
||||||||||||||||||||||||||||||||
| PhyNet Dermatology LLC |
(17) |
% | % | |||||||||||||||||||||||||||||||
| Pinnacle Treatment Centers, Inc.(18) |
% | % | ||||||||||||||||||||||||||||||||
| Plastics Management, LLC(18) |
% | % | ||||||||||||||||||||||||||||||||
| PPT Management Holdings, LLC(18) |
(15) |
% | % | |||||||||||||||||||||||||||||||
| RQM+ Corp.(18) |
% | % | ||||||||||||||||||||||||||||||||
| RSC Acquisition, Inc.(18) |
% | % | ||||||||||||||||||||||||||||||||
| RxSense Holdings LLC(18) |
% | % | ||||||||||||||||||||||||||||||||
| SHO Holding I Corporation (Shoes for Crews)(18) |
% | % | ||||||||||||||||||||||||||||||||
| Southern Orthodontic Partners Management, LLC |
% | % | ||||||||||||||||||||||||||||||||
| Stryten Energy LLC |
% | % | ||||||||||||||||||||||||||||||||
| SunMed Group Holdings, LLC(18) |
% | % | ||||||||||||||||||||||||||||||||
| TAUC Management, LLC(18) |
% | % | ||||||||||||||||||||||||||||||||
| Tilley Distribution, Inc.(18) |
% | % | ||||||||||||||||||||||||||||||||
| Ultimate Baked Goods Midco LLC (Rise Baking)(18) |
% | % | ||||||||||||||||||||||||||||||||
| Vessco Midco Holdings, LLC(18) |
% | % | ||||||||||||||||||||||||||||||||
| World Insurance Associates, LLC(18) |
% | % | ||||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| Total First Lien Bank Debt/Senior Secured Loans |
|
$ | $ | |||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| Second Lien Asset-Based Senior Secured Loans |
||||||||||||||||||||||||||||||||||
| ACRES Commercial Mortgage, LLC |
% | % | $ | $ | ||||||||||||||||||||||||||||||
| Varilease Finance, Inc. |
% | % | ||||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| Total Second Lien Asset-Based Senior Secured Loans |
|
$ | $ | |||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| Second Lien Bank Debt/Senior Secured Loans |
||||||||||||||||||||||||||||||||||
| PhyMed Management LLC** |
(16) |
% | % | $ | $ | |||||||||||||||||||||||||||||
| Rug Doctor LLC** (2) |
(11) |
% | % | |||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| Total Second Lien Bank Debt/Senior Secured Loans |
|
$ | $ | |||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| First Lien Life Science Senior Secured Loans |
||||||||||||||||||||||||||||||||||
| Alimera Sciences, Inc.(18) |
% | % | $ | $ | $ | |||||||||||||||||||||||||||||
| Apeel Technology, Inc |
% | % | ||||||||||||||||||||||||||||||||
| Arcutis Biotherapeutics, Inc.(3) |
% | % | ||||||||||||||||||||||||||||||||
| Ardelyx, Inc. |
% | % | ||||||||||||||||||||||||||||||||
| Axcella Health Inc. |
% | % | ||||||||||||||||||||||||||||||||
| BridgeBio Pharma, Inc.(3) |
% | |||||||||||||||||||||||||||||||||
| Centrexion Therapeutics, Inc. |
% | % | ||||||||||||||||||||||||||||||||
| Cerapedics, Inc.(18) |
% | % | ||||||||||||||||||||||||||||||||
| Glooko, Inc.(18) |
% | % | ||||||||||||||||||||||||||||||||
| Neuronetics, Inc.(18) |
% | % | ||||||||||||||||||||||||||||||||
| OmniGuide Holdings, Inc. (13) |
% | % | ||||||||||||||||||||||||||||||||
| Rubius Therapeutics, Inc.(18) |
% | % | ||||||||||||||||||||||||||||||||
| scPharmaceuticals, Inc.(18) |
% | % | ||||||||||||||||||||||||||||||||
| Vapotherm, Inc. |
% | % | ||||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| Total First Lien Life Science Senior Secured Loans |
|
$ | $ | |||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| Total Senior Secured Loans |
|
$ |
$ |
|||||||||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||||||||||||
| Description |
Industry |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||
| Equipment Financing — |
||||||||||||||||||||||||
| Aero Operating LLC (10) |
% | $ | $ | $ | ||||||||||||||||||||
| Air Methods Corporation (10) |
% | |||||||||||||||||||||||
| AmeraMex International, Inc. (10) |
% | |||||||||||||||||||||||
| Blackhawk Mining, LLC (10) |
% | |||||||||||||||||||||||
| Boart Longyear Company (10) |
% | |||||||||||||||||||||||
| Capital City Jet Center, Inc. (10) |
% | |||||||||||||||||||||||
| Champion Air, LLC (10) |
% | |||||||||||||||||||||||
| Clubcorp Holdings, Inc. (10) |
% | |||||||||||||||||||||||
| Dongwon Autopart Technology Inc. (10) |
% | |||||||||||||||||||||||
| EasyPak, LLC (10) |
% | |||||||||||||||||||||||
| Environmental Protection & Improvement Company, LLC (10) |
% | |||||||||||||||||||||||
| Equipment Operating Leases, LLC (2)(12) |
% | |||||||||||||||||||||||
| First American Commercial Bancorp, Inc. (10) |
% | |||||||||||||||||||||||
| First National Capital, LLC (10) |
% | |||||||||||||||||||||||
| Freightsol LLC (10) |
% | |||||||||||||||||||||||
| Garda CL Technical Services, Inc. (10) |
% | |||||||||||||||||||||||
| Georgia Jet, Inc. (10) |
% | |||||||||||||||||||||||
| GMT Corporation (10) |
% | |||||||||||||||||||||||
| Haljoe Coaches USA, LLC (10) |
% | |||||||||||||||||||||||
| Hawkeye Contracting Company, LLC (10) |
% | |||||||||||||||||||||||
| HTI Logistics Corporation (10) |
% | |||||||||||||||||||||||
| International Automotive Components Group, North America, Inc. (10) |
% | |||||||||||||||||||||||
| Kool Pak, LLC (10) |
% | |||||||||||||||||||||||
| Loyer Capital LLC (2)(12) |
% | |||||||||||||||||||||||
| Lux Credit Consultants, LLC (10) |
% | |||||||||||||||||||||||
| Lux Vending, LLC (10) |
% | |||||||||||||||||||||||
| Mountain Air Helicopters, Inc. (10) |
% | |||||||||||||||||||||||
| Rane Light Metal Castings Inc. (10) |
% | |||||||||||||||||||||||
| Rango, Inc. (10) |
% | |||||||||||||||||||||||
| Rossco Crane & Rigging, Inc. (10) |
% | |||||||||||||||||||||||
| Royal Coach Lines, Inc.(10) |
% | |||||||||||||||||||||||
| Royal Express Inc. (10) |
% | |||||||||||||||||||||||
| Sidelines Tree Service LLC (10) |
% | |||||||||||||||||||||||
| SLR Equipment Finance(2) |
% | |||||||||||||||||||||||
| Smiley Lifting Solutions, LLC(10) |
% | |||||||||||||||||||||||
| ST Coaches, LLC (10) |
% | |||||||||||||||||||||||
| Star Coaches Inc. (10) |
% | |||||||||||||||||||||||
| Superior Transportation, Inc. (10) |
% | |||||||||||||||||||||||
| The Smedley Company & Smedley Services, Inc. (10).. |
% | |||||||||||||||||||||||
| TMT Barges, LLC(10) |
% | |||||||||||||||||||||||
| Trinity Equipment Rentals, Inc. (10) |
% | |||||||||||||||||||||||
| Trolleys, Inc. (10) |
% | |||||||||||||||||||||||
| Up Trucking Services, LLC (10) |
% | |||||||||||||||||||||||
| Warrior Crane Services, LLC (10) |
% | |||||||||||||||||||||||
| Wind River Environmental, LLC (10) |
% | |||||||||||||||||||||||
| Womble Company, Inc. (10) |
% | |||||||||||||||||||||||
Shares/Units |
||||||||||||||||||||||||
| SLR Equipment Finance Equity Interests (2)(9)(19)* |
||||||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||
| Total Equipment Financing |
|
$ |
$ |
|||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||
| Preferred Equity – |
||||||||||||||||||||||||
| SOINT, LLC (2)(3)(4) |
% (11) |
$ | $ | |||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||
| Total Preferred Equity |
|
$ |
$ |
|||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||
| Description |
Industry |
Acquisition Date |
Shares/Units |
Cost |
Fair Value |
|||||||||||||
| Common Equity/Equity Interests/Warrants— |
||||||||||||||||||
| aTyr Pharma, Inc. Warrants * |
$ | $ | ||||||||||||||||
| CardioFocus, Inc. Warrants * |
||||||||||||||||||
| Centrexion Therapeutics, Inc. Warrants * |
||||||||||||||||||
| Conventus Orthopaedics, Inc. Warrants * |
||||||||||||||||||
| Delphinus Medical Technologies, Inc. Warrants * |
||||||||||||||||||
| Essence Group Holdings Corporation (Lumeris) Warrants * |
||||||||||||||||||
| KBH Topco LLC (Kingsbridge) (2)(5)(20) |
||||||||||||||||||
| RD Holdco Inc. (Rug Doctor) (2)* |
||||||||||||||||||
| RD Holdco Inc. (Rug Doctor) Class B (2)* |
||||||||||||||||||
| RD Holdco Inc. (Rug Doctor) Warrants (2)* |
||||||||||||||||||
| Senseonics Holdings, Inc. (3)(8)* |
||||||||||||||||||
| SLR Business Credit (2)(3)(21) |
||||||||||||||||||
| SLR Credit Solutions (2)(3)(22) |
||||||||||||||||||
| SLR Healthcare ABL (2)(3)(23) |
||||||||||||||||||
| TwentyEighty Investors, LLC* |
||||||||||||||||||
| Vapotherm, Inc. Warrants(3)* |
||||||||||||||||||
| Venus Concept Ltd. Warrants* (f/k/a Restoration Robotics) |
||||||||||||||||||
| |
|
|
|
|||||||||||||||
| Total Common Equity/Equity Interests/Warrants |
|
$ |
$ |
|||||||||||||||
| |
|
|
|
|||||||||||||||
| Total Investments (6) — |
|
$ |
$ |
|||||||||||||||
| |
|
|
|
|||||||||||||||
| Description |
Industry |
Acquisition Date |
Maturity Date |
Par Amount |
||||||||||||||||||||
| Cash Equivalents — |
||||||||||||||||||||||||
| U.S. Treasury Bill |
$ | $ | $ | |||||||||||||||||||||
| |
|
|
|
|||||||||||||||||||||
| Total Investments & Cash Equivalents — |
|
$ |
$ |
|||||||||||||||||||||
| Liabilities in Excess of Other Assets — ( |
|
( |
) | |||||||||||||||||||||
| |
|
|||||||||||||||||||||||
| Net Assets — |
$ |
|||||||||||||||||||||||
| |
|
|||||||||||||||||||||||
(1) |
Floating rate debt investments typically bear interest at a rate determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), the Secured Overnight Financing Rate (“SOFR” or “S”) or the prime index rate (“PRIME” or “P”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current rate of interest, or in the case of leases the current implied yield, in effect as of June 30, 2022. |
| (2) | Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the Investment Company Act of 1940, as amended (“1940 Act”), due to beneficially owning, either directly or through one or more controlled companies, more than |
| Name of Issuer |
Fair Value at December 31, 2021 |
Gross Additions |
Gross Reductions |
Realized Gain (Loss) |
Change in Unrealized Gain (Loss) |
Interest/Dividend Income |
Fair Value at June 30, 2022 |
|||||||||||||||||||||
| Equipment Operating Leases, LLC |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Kingsbridge Holdings, LLC |
( |
) | ||||||||||||||||||||||||||
| KBH Topco, LLC (Kingsbridge) |
||||||||||||||||||||||||||||
| Loyer Capital LLC |
||||||||||||||||||||||||||||
| RD Holdco Inc. (Rug Doctor, common equity) |
||||||||||||||||||||||||||||
| RD Holdco Inc. (Rug Doctor, class B).. |
( |
) | ||||||||||||||||||||||||||
| RD Holdco Inc. (Rug Doctor, warrants).. |
||||||||||||||||||||||||||||
| Rug Doctor LLC |
( |
) | ( |
) | ||||||||||||||||||||||||
| SLR Business Credit |
( |
) | ||||||||||||||||||||||||||
| SLR Credit Solutions |
( |
) | ||||||||||||||||||||||||||
| SLR Equipment Finance (equity) |
( |
) | ||||||||||||||||||||||||||
| SLR Equipment Finance (debt) |
||||||||||||||||||||||||||||
| SLR Healthcare ABL |
( |
) | ||||||||||||||||||||||||||
| SOAGG LLC |
( |
) | ||||||||||||||||||||||||||
| SOINT, LLC |
( |
) | ||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| $ | $ | $ | $ | $ | ( |
) | $ | $ | ||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| (3) | Indicates assets that the Company believes may not represent “qualifying assets” under Section 55(a) of the 1940 Act. If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making follow-on investments in existing portfolio companies or could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act. As of June 30, 2022, on a fair value basis, non-qualifying assets in the portfolio represented |
| (4) | The Company’s investment in SOINT, LLC include a one dollar investment in common shares. |
| (5) | Kingsbridge Holdings, LLC is held through KBH Topco LLC, a Delaware corporation. |
| (6) | Aggregate net unrealized depreciation for U.S. federal income tax purposes is $ |
| (7) | Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR, SOFR or PRIME rate. These instruments are often subject to a LIBOR, SOFR or PRIME rate floor. |
| (8) | Denotes a Level 1 investment. |
| (9) | SLR Equipment Finance is held through NEFCORP LLC, a wholly-owned consolidated taxable subsidiary and NEFPASS LLC, a wholly-owned consolidated subsidiary. |
| (10) | Indicates an investment that is wholly held by the Company through NEFPASS LLC. |
| (11) | Interest is paid in kind (“PIK”). |
| (12) | Denotes a subsidiary of SLR Equipment Finance. |
| (13) | OmniGuide Holdings, Inc., Domain Surgical, Inc. and OmniGuide, Inc. are co-borrowers. |
| (14) | AmeriMark Interactive, LLC, AmeriMark Direct LLC, AmeriMark Intermediate Sub, Inc., L.T.D. Commodities LLC, Dr. Leonard’s Healthcare Corp. and Amerimark Intermediate Holdings, LLC are each co-Borrowers. |
| (15) | Spread is |
| (16) | Spread is |
| (17) | Spread is |
| (18) | Indicates an investment that is wholly or partially held by the Company through its wholly-owned financing subsidiary SUNS SPV LLC (the “SUNS SPV”). Such investments are pledged as collateral under the Senior Secured Revolving SPV Credit Facility (the “SPV Credit Facility”) (see Note 7 to the consolidated financial statements) and are not generally available to creditors, if any, of the Company. |
(19) |
See note 11 to the consolidated financial statements. |
(20) |
See note 13 to the consolidated financial statements. |
(21) |
See note 15 to the consolidated financial statements. |
(22) |
See note 9 to the consolidated financial statements. |
(23) |
See note 14 to the consolidated financial statements. |
* |
Non-income producing security. |
** |
Investment is on non-accrual status. |
Industry Classification |
Percentage of Total Investments (at fair value) as of June 30, 2022 |
|||
Diversified Financial Services (includes SLR Credit Solutions, SLR Business Credit and SLR Healthcare ABL) |
% | |||
Multi-Sector Holdings (includes Kingsbridge Holdings, LLC, SLR Equipment Finance, Equipment Operating Leases, LLC and Loyer Capital LLC) |
% | |||
Health Care Providers & Service s |
% | |||
Pharmaceuticals |
% | |||
Health Care Equipment & Supplies |
% | |||
Software |
% | |||
Insurance |
% | |||
Wireless Telecommunication Services |
% | |||
Biotechnolog y |
% | |||
IT Services |
% | |||
Personal Products |
% | |||
Diversified Consumer Services |
% | |||
Capital Markets |
% | |||
Road & Rail |
% | |||
Auto Parts & Equipment |
% | |||
Packaged Foods & Meats |
% | |||
Internet & Catalog Retail |
% | |||
Life Sciences Tools & Services |
% | |||
Building Products |
% | |||
Commercial Services & Supplie s |
% | |||
Internet Software & Services |
% | |||
Trading Companies & Distributors |
% | |||
Communications Equipment |
% | |||
Leisure Equipment & Products |
% | |||
Health Care Technology |
% | |||
Specialty Retail |
% | |||
Auto Components |
% | |||
Oil, Gas & Consumable Fuels |
% | |||
Professional Services |
% | |||
Airlines |
% | |||
Footwear |
% | |||
Machinery |
% | |||
Metals & Mining |
% | |||
Aerospace & Defense |
% | |||
Hotels, Restaurants & Leisure . |
% | |||
Consumer Finance |
% | |||
Water Utilities |
% | |||
Construction & Engineering |
% | |||
Energy Equipment & Services |
% | |||
Containers & Packagin g |
% | |||
Total Investments |
% | |||
Description |
Industry |
Spread Above Index (7) |
LIBOR Floor |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||||||||||
Senior Secured Loans — |
||||||||||||||||||||||||||||||||||
First Lien Bank Debt/Senior Secured Loans |
||||||||||||||||||||||||||||||||||
Aegis Toxicology Sciences Corporation |
% | % | $ | |
$ | $ | ||||||||||||||||||||||||||||
Alteon Health, LLC |
% | % | ||||||||||||||||||||||||||||||||
American Teleconferencing Services, Ltd.** |
% | % | ||||||||||||||||||||||||||||||||
American Teleconferencing Services, Ltd.** |
% | % | ||||||||||||||||||||||||||||||||
AmeriMark Intermediate Holdings, LLC(14) |
% | % | ||||||||||||||||||||||||||||||||
Atria Wealth Solutions, Inc |
% | % | ||||||||||||||||||||||||||||||||
Basic Fun, Inc |
% | % | ||||||||||||||||||||||||||||||||
CC SAG Holdings Corp. (Spectrum Automotive) |
% | % | ||||||||||||||||||||||||||||||||
Community Brands ParentCo, LLC (f/k/a Ministry Brands) |
% | % | ||||||||||||||||||||||||||||||||
Enhanced Permanent Capital, LLC(3) |
% | % | ||||||||||||||||||||||||||||||||
Foundation Consumer Brands, LLC |
% | % | ||||||||||||||||||||||||||||||||
iCIMS, Inc. |
% | % | ||||||||||||||||||||||||||||||||
Inszone Mid, LLC |
% | % | ||||||||||||||||||||||||||||||||
Ivy Fertility Services, LLC |
% | % | ||||||||||||||||||||||||||||||||
Kid Distro Holdings, LLC (Distro Kid) |
% | % | ||||||||||||||||||||||||||||||||
Kingsbridge Holdings, LLC(2) |
% | % | ||||||||||||||||||||||||||||||||
KORE Wireless Group, Inc.(3) |
% | |||||||||||||||||||||||||||||||||
Logix Holding Company, LLC |
% | % | ||||||||||||||||||||||||||||||||
Maurices, Incorporated |
% | % | ||||||||||||||||||||||||||||||||
MMIT Holdings, LLC |
% | % | ||||||||||||||||||||||||||||||||
NAC Holdings Corporation (Jaguar) |
% | % | ||||||||||||||||||||||||||||||||
One Touch Direct, LLC |
% | |||||||||||||||||||||||||||||||||
PhyNet Dermatology LLC |
(17) |
% | % | |||||||||||||||||||||||||||||||
Pinnacle Treatment Centers, Inc |
% | % | ||||||||||||||||||||||||||||||||
PPT Management Holdings, LLC |
(15) |
% | % | |||||||||||||||||||||||||||||||
RQM+ Corp |
% | % | ||||||||||||||||||||||||||||||||
Stryten Energy LLC |
% | % | ||||||||||||||||||||||||||||||||
SunMed Group Holdings, LLC |
% | % | ||||||||||||||||||||||||||||||||
Ultimate Baked Goods Midco LLC (Rise Baking) |
% | % | ||||||||||||||||||||||||||||||||
USR Parent, Inc. (Staples) |
% | % | ||||||||||||||||||||||||||||||||
Total First Lien Bank Debt/Senior Secured Loans |
$ | $ | ||||||||||||||||||||||||||||||||
Second Lien Asset-Based Senior Secured Loans |
||||||||||||||||||||||||||||||||||
ACRES Commercial Mortgage, LLC |
% | % | $ | $ | ||||||||||||||||||||||||||||||
Varilease Finance, Inc. |
% | % | ||||||||||||||||||||||||||||||||
Total Second Lien Asset-Based Senior Secured Loans |
$ | $ | ||||||||||||||||||||||||||||||||
Second Lien Bank Debt/Senior Secured Loans |
||||||||||||||||||||||||||||||||||
PhyMed Management LLC |
(16) |
% | % | $ | $ | |||||||||||||||||||||||||||||
Rug Doctor LLC (2) |
(11) |
% | % | |||||||||||||||||||||||||||||||
Total Second Lien Bank Debt/Senior Secured Loans |
$ | $ | ||||||||||||||||||||||||||||||||
First Lien Life Science Senior Secured Loans |
||||||||||||||||||||||||||||||||||
Alimera Sciences, Inc. |
% | % | $ | $ | $ | |||||||||||||||||||||||||||||
Arcutis Biotherapeutics, Inc.(3) |
% | % | ||||||||||||||||||||||||||||||||
Ardelyx, Inc |
% | % | ||||||||||||||||||||||||||||||||
Axcella Health Inc. |
% | % | ||||||||||||||||||||||||||||||||
BridgeBio Pharma, Inc.(3) |
% | |||||||||||||||||||||||||||||||||
Centrexion Therapeutics, Inc. |
% | % | ||||||||||||||||||||||||||||||||
Cerapedics, Inc. |
% | % | ||||||||||||||||||||||||||||||||
Delphinus Medical Technologies, Inc. |
% | % | ||||||||||||||||||||||||||||||||
Glooko, Inc. |
% | % | ||||||||||||||||||||||||||||||||
Neuronetics, Inc. |
% | % | ||||||||||||||||||||||||||||||||
OmniGuide Holdings, Inc. (13) |
% | % | ||||||||||||||||||||||||||||||||
Rezolute, Inc |
% | % | ||||||||||||||||||||||||||||||||
Rubius Therapeutics, Inc. (3) |
% | % | ||||||||||||||||||||||||||||||||
scPharmaceuticals, Inc. |
% | % | ||||||||||||||||||||||||||||||||
SOC Telemed, Inc. |
% | % | ||||||||||||||||||||||||||||||||
Total First Lien Life Science Senior Secured Loans |
$ | $ | ||||||||||||||||||||||||||||||||
Total Senior Secured Loans |
$ |
$ |
||||||||||||||||||||||||||||||||
Description |
Industry |
Interest Rate (1) |
Acquisition Date |
Maturity Date |
Par Amount |
Cost |
Fair Value |
|||||||||||||||||||
Equipment Financing — |
||||||||||||||||||||||||||
Aero Operating LLC (10) |
$ | $ | $ | |||||||||||||||||||||||
Air Methods Corporation (10) |
||||||||||||||||||||||||||
AmeraMex International, Inc. (10) |
||||||||||||||||||||||||||
Blackhawk Mining, LLC (10) |
||||||||||||||||||||||||||
Boart Longyear Company (10) |
||||||||||||||||||||||||||
Capital City Jet Center, Inc. (10) |
||||||||||||||||||||||||||
Champion Air, LLC (10) |
||||||||||||||||||||||||||
Clubcorp Holdings, Inc. (10) |
||||||||||||||||||||||||||
Dongwon Autopart Technology Inc. (10) |
||||||||||||||||||||||||||
EasyPak, LLC (10) |
||||||||||||||||||||||||||
Environmental Protection & Improvement Company, LLC (10) |
||||||||||||||||||||||||||
Equipment Operating Leases, LLC (2)(12) |
||||||||||||||||||||||||||
First American Commercial Bancorp, Inc. (10) |
||||||||||||||||||||||||||
First National Capital, LLC (10) |
||||||||||||||||||||||||||
Freightsol LLC (10) |
||||||||||||||||||||||||||
Garda CL Technical Services, Inc. (10) |
||||||||||||||||||||||||||
Georgia Jet, Inc. (10) |
||||||||||||||||||||||||||
GMT Corporation (10) |
||||||||||||||||||||||||||
Haljoe Coaches USA, LLC (10) |
||||||||||||||||||||||||||
Hawkeye Contracting Company, LLC (10) |
||||||||||||||||||||||||||
HTI Logistics Corporation (10) |
||||||||||||||||||||||||||
International Automotive Components Group, North America, Inc. (10) |
||||||||||||||||||||||||||
Kool Pak, LLC (10) |
||||||||||||||||||||||||||
Loyer Capital LLC (2)(12) |
||||||||||||||||||||||||||
Lux Credit Consultants, LLC (10) |
||||||||||||||||||||||||||
Lux Vending, LLC (10) |
||||||||||||||||||||||||||
Mountain Air Helicopters, Inc. (10) |
||||||||||||||||||||||||||
Rane Light Metal Castings Inc. (10) |
||||||||||||||||||||||||||
Rango, Inc. (10) |
||||||||||||||||||||||||||
Rossco Crane & Rigging, Inc. (10) |
||||||||||||||||||||||||||
Royal Coach Lines, Inc.(10) |
||||||||||||||||||||||||||
Royal Express Inc. (10) |
||||||||||||||||||||||||||
Sidelines Tree Service LLC (10) |
||||||||||||||||||||||||||
South Texas Oilfield Solutions, LLC (10) |
||||||||||||||||||||||||||
ST Coaches, LLC (10) |
||||||||||||||||||||||||||
Stafford Logistics, Inc. (10) |
||||||||||||||||||||||||||
Star Coaches Inc. (10) |
||||||||||||||||||||||||||
Sturgeon Services International Inc. (10) |
||||||||||||||||||||||||||
Superior Transportation, Inc. (10) |
||||||||||||||||||||||||||
Tailwinds, LLC (10) |
||||||||||||||||||||||||||
The Smedley Company & Smedley Services, Inc. (10).. |
||||||||||||||||||||||||||
Trinity Equipment Rentals, Inc. (10) |
||||||||||||||||||||||||||
Trolleys, Inc. (10) |
||||||||||||||||||||||||||
Up Trucking Services, LLC (10) |
||||||||||||||||||||||||||
Warrior Crane Services, LLC (10) |
||||||||||||||||||||||||||
Wind River Environmental, LLC (10) |
||||||||||||||||||||||||||
Womble Company, Inc. (10) |
||||||||||||||||||||||||||
Shares/Units |
||||||||||||||||||||||||||
SLR Equipment Finance Equity Interests (2)(9)* |
||||||||||||||||||||||||||
Total Equipment Financing |
$ |
$ |
||||||||||||||||||||||||
Preferred Equity – |
||||||||||||||||||||||||||
SOAGG LLC (2)(3)(4) |
$ | $ | ||||||||||||||||||||||||
SOINT, LLC (2)(3)(4) |
(11) |
|||||||||||||||||||||||||
Total Preferred Equity |
$ |
$ |
||||||||||||||||||||||||
Description |
Industry |
Acquisition Date |
Shares/Units |
Cost |
Fair Value |
|||||||||||||||||
Common Equity/Equity Interests/Warrants— |
||||||||||||||||||||||
aTyr Pharma, Inc. Warrants * |
$ | $ | ||||||||||||||||||||
CardioFocus, Inc. Warrants * |
Health Care Equipment & Supplies |
|||||||||||||||||||||
Centrexion Therapeutics, Inc. Warrants * |
||||||||||||||||||||||
Conventus Orthopaedics, Inc. Warrants * |
Health Care Equipment & Supplies |
|||||||||||||||||||||
Delphinus Medical Technologies, Inc. Warrants * |
Health Care Equipment & Supplies |
|||||||||||||||||||||
Essence Group Holdings Corporation (Lumeris) Warrants * |
||||||||||||||||||||||
KBH Topco LLC (Kingsbridge) (2)(5) |
||||||||||||||||||||||
RD Holdco Inc. (Rug Doctor) (2)* |
||||||||||||||||||||||
RD Holdco Inc. (Rug Doctor) Class B (2)* |
||||||||||||||||||||||
RD Holdco Inc. (Rug Doctor) Warrants (2)* |
||||||||||||||||||||||
Senseonics Holdings, Inc. (3)(8)* |
Health Care Equipment & Supplies |
|||||||||||||||||||||
SLR Credit Solutions (2)(3) |
||||||||||||||||||||||
Venus Concept Ltd. Warrants* (f/k/a Restoration Robotics) |
Health Care Equipment & Supplies |
|||||||||||||||||||||
Total Common Equity/Equity Interests/Warrants |
$ |
$ |
||||||||||||||||||||
Total Investments (6) — |
$ |
$ |
||||||||||||||||||||
Description |
Industry |
Acquisition Date |
Maturity Date |
Par Amount |
||||||||||||||||||||
Cash Equivalents — |
||||||||||||||||||||||||
U.S. Treasury Bill |
$ | |
$ | $ | ||||||||||||||||||||
Total Investments & Cash Equivalents — |
$ |
$ |
||||||||||||||||||||||
Liabilities in Excess of Other Assets — ( |
( |
) | ||||||||||||||||||||||
Net Assets — |
$ |
|||||||||||||||||||||||
| (1) | Floating rate debt investments typically bear interest at a rate determined by reference to the London Interbank Offered Rate (“LIBOR”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current rate of interest, or in the case of leases the current implied yield, in effect as of December 31, 2021. |
| (2) | Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the Investment Company Act of 1940, as amended (“1940 Act”), due to beneficially owning, either directly or through one or more controlled companies, more than |
Name of Issuer |
Fair Value at December 31, 2020 |
Gross Additions |
Gross Reductions |
Realized Gain (Loss) |
Change in Unrealized Gain (Loss) |
Interest/Dividend Income |
Fair Value at December 31, 2021 |
|||||||||||||||||||||
AviatorCap SII, LLC |
$ | $ | $ | $ | |
$ | $ | $ | ||||||||||||||||||||
Equipment Operating Leases, LLC |
||||||||||||||||||||||||||||
Kingsbridge Holdings, LLC |
( |
) | ||||||||||||||||||||||||||
KBH Topco, LLC (Kingsbridge) |
||||||||||||||||||||||||||||
Loyer Capital LLC |
||||||||||||||||||||||||||||
RD Holdco Inc. (Rug Doctor, common equity) |
( |
) | ||||||||||||||||||||||||||
RD Holdco Inc. (Rug Doctor, class B).. |
||||||||||||||||||||||||||||
RD Holdco Inc. (Rug Doctor, warrants).. |
||||||||||||||||||||||||||||
Rug Doctor LLC |
( |
) | ||||||||||||||||||||||||||
SLR Credit Solutions |
||||||||||||||||||||||||||||
SLR Equipment Finance (equity) |
||||||||||||||||||||||||||||
SLR Equipment Finance (debt) |
||||||||||||||||||||||||||||
SOAGG LLC |
( |
) | ||||||||||||||||||||||||||
SOINT, LLC |
||||||||||||||||||||||||||||
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||
| (3) | Indicates assets that the Company believes may not represent “qualifying assets” under Section 55(a) of the 1940 Act. If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making follow-on investments in existing portfolio companies or could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act. As of December 31, 2021, on a fair value basis, non-qualifying assets in the portfolio represented |
| (4) | The Company’s investments in SOAGG, LLC and SOINT, LLC include a two and one dollar investment in common shares, respectively. |
| (5) | Kingsbridge Holdings, LLC is held through KBH Topco LLC, a Delaware corporation. |
| (6) | Aggregate net unrealized appreciation for U.S. federal income tax purposes is $ |
| (7) | Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR or PRIME rate. These instruments are often subject to a LIBOR or PRIME rate floor. |
| (8) | Denotes a Level 1 investment. |
| (9) | SLR Equipment Finance is held through NEFCORP LLC, a wholly-owned consolidated taxable subsidiary and NEFPASS LLC, a wholly-owned consolidated subsidiary. |
| (10) | Indicates an investment that is wholly held by the Company through NEFPASS LLC. |
| (11) | Interest is paid in kind (“PIK”). |
| (12) | Denotes a subsidiary of SLR Equipment Finance. |
| (13) | OmniGuide Holdings, Inc., Domain Surgical, Inc. and OmniGuide, Inc. are co-borrowers. |
| (14) | AmeriMark Interactive, LLC, AmeriMark Direct LLC, AmeriMark Intermediate Sub, Inc., L.T.D. Commodities LLC, Dr. Leonard’s Healthcare Corp. and Amerimark Intermediate Holdings, LLC are each co-Borrowers. |
| (15) | Spread is |
| (16) | Spread is |
| (17) | Spread is |
| * | Non-income producing security. |
| ** | Investment is on non-accrual status. |
Industry Classification |
Percentage of Total Investments (at fair value) as of December 31, 2021 | |
Multi-Sector Holdings (includes Kingsbridge Holdings, LLC, SLR Equipment Finance, Equipment Operating Leases, LLC and Loyer Capital LLC) |
||
Diversified Financial Services (includes SLR Credit Solutions) |
||
Health Care Providers & Services |
||
Pharmaceuticals |
||
Software |
||
Health Care Equipment & Supplies |
||
Biotechnology |
||
Wireless Telecommunication Services |
||
Personal Products |
||
Road & Rail |
||
IT Services |
||
Diversified Consumer Services |
||
Insurance |
||
Commercial Services & Supplies |
||
Capital Markets |
||
Auto Parts & Equipment |
||
Internet & Catalog Retail |
||
Packaged Foods & Meats |
||
Life Sciences Tools & Services |
||
Communications Equipment |
||
Specialty Retail |
||
Auto Components |
||
Airlines |
||
Health Care Technology |
||
Machinery |
||
Aerospace & Defense |
||
Metals & Mining |
||
Hotels, Restaurants & Leisure |
||
Consumer Finance |
||
Air Freight & Logistics |
||
Energy Equipment & Services |
||
Oil, Gas & Consumable Fuels |
||
Construction & Engineering |
||
Containers & Packaging |
||
Total Investments |
||
| (a) | Investment transactions are accounted for on the trade date; |
| (b) | Under procedures established by the board of directors (the “Board”), we value investments, including certain senior secured debt, subordinated debt and other debt securities with maturities greater than mid-market pricing as a practical expedient for fair value unless a different point within the range is more representative. If and when market quotations are deemed not to represent fair value, we may utilize independent third-party valuation firms to assist us in determining the fair value of material assets. Accordingly, such investments go through our multi-step valuation process as described below. In each such case, independent valuation firms consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations. Debt investments with maturities of |
| (1) | our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of the Investment Adviser responsible for the portfolio investment; |
| (2) | preliminary valuation conclusions are then documented and discussed with senior management of the Investment Adviser; |
| (3) | independent valuation firms engaged by the Board conduct independent appraisals and review the Investment Adviser’s preliminary valuations and make their own independent assessment for all material assets; |
| (4) | the audit committee of the Board reviews the preliminary valuation of the Investment Adviser and that of the independent valuation firm and responds to the valuation recommendation of the independent valuation firm, if any, to reflect any comments; and |
| (5) | the Board discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Investment Adviser, the respective independent valuation firm, if any, and the audit committee. |
| (c) | Gains or losses on investments are calculated by using the specific identification method. |
| (d) | The Company records dividend income and interest, adjusted for amortization of premium and accretion of discount, on an accrual basis. Loan origination fees, original issue discount, and market discounts are capitalized and we amortize such amounts into income using the effective interest method. Upon the prepayment of a loan, any unamortized loan origination fees are recorded as interest income. We record call premiums received on loans repaid as interest income when we receive such amounts. Capital structuring fees, amendment fees, consent fees, and any other non-recurring fee income as well as management fee and other fee income for services rendered, if any, are recorded as other income when earned. |
| (e) | The Company intends to comply with the applicable provisions of the Code pertaining to regulated investment companies to make distributions of taxable income sufficient to relieve it of substantially all U.S. federal income taxes. The Company, at its discretion, may carry forward taxable income in excess of calendar year distributions and pay a |
| (f) | Book and tax basis differences relating to stockholder distributions and other permanent book and tax differences are typically reclassified among the Company’s capital accounts annually. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from GAAP. |
| (g) | Distributions to common stockholders are recorded as of the record date. The amount to be paid out as a distribution is determined by the Board. Net realized capital gains, if any, are generally distributed or deemed distributed at least annually. |
| (h) | In accordance with Regulation S-X and ASC Topic 810—Consolidation |
| (i) | The accounting records of the Company are maintained in U.S. dollars. Any assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. The Company will not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations would be included with the net unrealized gain or loss from investments. The Company’s investments in foreign securities, if any, may involve certain risks, including without limitation: foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments in terms of U.S. dollars and therefore the earnings of the Company. |
| (j) | In accordance with ASC 835-30, the Company reports origination and other expenses related to certain debt issuances as a direct deduction from the carrying amount of the debt liability. Applicable expenses are deferred and amortized using either the effective interest method or the straight-line method over the stated life. The straight-line method may be used on revolving facilities and/or when it approximates the effective yield method. |
| (k) | The Company may enter into forward exchange contracts in order to hedge against foreign currency risk. These contracts are marked-to-market |
| (l) | The Company records expenses related to shelf registration statements and applicable equity offering costs as prepaid assets. These expenses are typically charged as a reduction of capital upon the sale of shares or expensed, in accordance with ASC 946-20-25. |
| (m) | Investments that are expected to pay regularly scheduled interest in cash are generally placed on non-accrual status when principal or interest cash payments are past due non-accrual investments are restored to accrual status if past due principal and interest are paid in cash, and in management’s judgment, are likely to continue timely payment of their remaining principal and interest obligations. Cash interest payments received on such investments may be recognized as income or applied to principal depending on management’s judgment. |
| (n) | The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only securities with a maturity of three months or less would qualify, with limited exceptions. The Company believes that certain U.S. Treasury bills, repurchase agreements and other high-quality, short-term debt securities would qualify as cash equivalents. |
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Earnings (loss) per share (basic & diluted) |
||||||||||||||||
Numerator—net increase (decrease) in net assets resulting from operations: |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
Denominator—weighted average shares: |
||||||||||||||||
Earnings (loss) per share: |
($ |
) | $ | ($ |
) | $ | ||||||||||
| a) | Quoted prices for similar assets or liabilities in active markets; |
| b) | Quoted prices for identical or similar assets or liabilities in non-active markets; |
| c) | Pricing models whose inputs are observable for substantially the full term of the asset or liability; and |
| d) | Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability. |
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
| Assets: |
||||||||||||||||
| Senior Secured Loans |
$ | $ | $ | $ | ||||||||||||
| Equipment Financing |
||||||||||||||||
| Preferred Equity |
||||||||||||||||
| Common Equity/Equity Interests/Warrants |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total Investments |
$ | |
$ | |
$ | |
$ | |
||||||||
| |
|
|
|
|
|
|
|
|||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
| Assets: |
||||||||||||||||
| Senior Secured Loans |
$ | $ | |
$ | $ | |||||||||||
| Equipment Financing |
||||||||||||||||
| Preferred Equity |
||||||||||||||||
| Common Equity/Equity Interests/Warrants |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total Investments$ |
$ | |
$ | $ | |
$ | |
|||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Liabilities: |
||||||||||||||||
| 2022 Unsecured Notes |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
Senior Secured Loans |
Equipment Financing |
Preferred Equity |
Common Equity/ Equity Interests/ Warrants |
Total |
||||||||||||||||
| Fair value, March 31, 2022 |
$ | $ | |
$ | |
$ | $ | |||||||||||||
| Total gains or losses included in earnings: |
||||||||||||||||||||
| Net realized gain (loss) |
||||||||||||||||||||
| Net change in unrealized loss |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
| Purchase of investment securities(1) |
||||||||||||||||||||
| Proceeds from dispositions of investment securities. |
( |
) | ( |
) | ( |
) | ||||||||||||||
| Transfers in/out of Level 3 |
||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Fair value, June 30, 2022 |
$ | |
$ | $ | $ | $ | ||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Unrealized losses for the period relating to those Level 3 assets that were still held by the Company at the end of the period: |
||||||||||||||||||||
| Net change in unrealized loss |
$ ( |
$ ( |
$ ( |
$( |
$( |
|||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
Senior Secured Loans |
Equipment Financing |
Preferred Equity |
Common Equity/ Equity Interests/ Warrants |
Total |
||||||||||||||||
| Fair value, December 31, 2021 |
$ | $ | $ | $ | $ | |||||||||||||||
| Total gains or losses included in earnings: |
||||||||||||||||||||
| Net realized gain (loss) |
||||||||||||||||||||
| Net change in unrealized loss |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
| Purchase of investment securities(1) |
||||||||||||||||||||
| Proceeds from dispositions of investment securities. |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
| Transfers in/out of Level 3 |
||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Fair value, June 30, 2022 |
$ | $ | $ | $ | $ | |||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
| Unrealized losses for the period relating to those Level 3 assets that were still held by the Company at the end of the period: |
||||||||||||||||||||
| Net change in unrealized loss |
$ ( |
$ ( |
$ ( |
$( |
$( |
|||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|||||||||||
(1) |
Includes positions acquired from SUNS as a result of the Merger. |
| 2022 Unsecured Notes |
For the three months ended June 30, 2022 |
|||
| Beginning fair value |
$ | |||
| Net realized (gain) loss |
||||
| Net change in unrealized (gain) loss |
||||
| Borrowings |
||||
| Repayments |
( |
) | ||
| Transfers in/out of Level 3 |
||||
| |
|
|||
| Ending fair value |
$ | |||
| |
|
|||
2022 Unsecured Notes |
For the six months ended June 30, 2022 |
|||
Beginning fair value |
$ | |||
Net realized (gain) loss |
||||
Net change in unrealized (gain) loss |
||||
Borrowings |
||||
Repayments |
( |
) | ||
Transfers in/out of Level 3 |
||||
Ending fair value |
$ | |||
Senior Secured Loans |
Equipment Financing |
Preferred Equity |
Common Equity/ Equity Interests/ Warrants |
Total |
||||||||||||||||
Fair value, December 31, 2020 |
$ | $ | |
$ | $ | $ | ||||||||||||||
Total gains or losses included in earnings: |
||||||||||||||||||||
Net realized gain (loss) |
( |
) | ||||||||||||||||||
Net change in unrealized gain (loss) |
( |
) | ( |
) | ( |
) | ||||||||||||||
Purchase of investment securities |
||||||||||||||||||||
Proceeds from dispositions of investment securities. |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Transfers in/out of Level 3 (1) |
( |
) | ( |
) | ||||||||||||||||
Fair value, December 31, 2021 |
$ | $ | $ | $ | $ | |||||||||||||||
Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period: |
||||||||||||||||||||
Net change in unrealized gain (loss) |
$ ( |
$ |
$ ( |
$ |
$( |
|||||||||||||||
| (1) | On February 17, 2021, the Company exercised its warrants in Senseonics Holdings, Inc., receiving shares in the common stock of Senseonics Holdings, Inc. The common stock of Senseonics Holdings, Inc. is publicly traded, so this position is considered to be a Level 1 asset. |
2022 Unsecured Notes |
For the year ended December 31, 2021 |
|||
Beginning fair value |
$ | |||
Net realized (gain) loss |
||||
Net change in unrealized (gain) loss |
||||
Borrowings |
||||
Repayments |
||||
Transfers in/out of Level 3 |
||||
Ending fair value |
$ | |||
Asset or Liability |
Fair Value at June 30, 2022 |
Principal Valuation Technique/Methodology |
Unobservable Input |
Range (Weighted Average) | ||||||||
| Senior Secured Loans |
Asset | $ $ |
|
(1) |
|
|||||||
| Equipment Financing |
Asset | $ $ |
|
|
|
|||||||
| Preferred Equity |
Asset | $ | ||||||||||
| Common Equity/Equity Interests/Warrants |
Asset | $ $ |
|
(2) |
|
|||||||
| (1) | Investments are valued using a sum-of-the (1.8x-8.0x) for certain segments of the business and expected revenue multiples (1.8x-2.8x) for certain segments of the business. |
| (2) | Includes $ |
Asset or Liability |
Fair Value at December 31, 2021 |
Principal Valuation Technique/Methodology |
Unobservable Input |
Range (Weighted Average) | ||||||||
| Senior Secured Loans |
Asset | $ $ |
|
(1) |
Multiple |
|||||||
| Equipment Financing |
Asset | $ $ |
|
Equity |
||||||||
| Preferred Equity |
Asset | $ | ||||||||||
| Common Equity/Equity Interests/Warrants |
Asset | $ $ |
|
Multiple (2) |
Multiple Equity |
|||||||
| 2022 Unsecured Notes |
Liability | $ | ||||||||||
| (1) | Investments are valued using a sum-of-the (2x-3x) for certain segments of the business and expected revenue multiples (2x-3x) for certain segments of the business. |
| (2) | Includes $ |
June 30, 2022 |
December 31, 2021 |
|||||||||||||||
| Facility |
Face Amount |
Carrying Value |
Face Amount |
Carrying Value |
||||||||||||
| Credit Facility |
$ | |
$ | |
(1) |
$ | |
$ | |
(1) | ||||||
| SPV Credit Facility |
(2) |
|||||||||||||||
| 2022 Unsecured Notes |
||||||||||||||||
| 2022 Tranche C Notes |
(3) |
(3) | ||||||||||||||
| 2023 Unsecured Notes |
(4) |
(4) | ||||||||||||||
| 2024 Unsecured Notes |
(5) |
(5) | ||||||||||||||
| 2025 Unsecured Notes |
(6) |
|||||||||||||||
| 2026 Unsecured Notes |
(7) |
(7) | ||||||||||||||
| 2027 Unsecured Notes |
(8) |
(8) | ||||||||||||||
| 2027 Series F Unsecured Notes |
(9) |
|||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| $ | |
$ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| (1) | Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ |
| (2) | Carrying Value equals the Face Amount net of unamortized market discount of $ |
| (3) | Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ |
| (4) | Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ |
| (5) | Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ |
| (6) | Carrying Value equals the Face Amount net of unamortized market discount of $ |
| (7) | Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ |
| (8) | Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ |
| (9) | Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ |
Six months ended June 30, 2022 |
Six months ended June 30, 2021 |
|||||||
| Per Share Data: (a) |
||||||||
| Net asset value, beginning of year |
$ | $ | ||||||
| |
|
|
|
|||||
| Net investment income |
||||||||
| Net realized and unrealized gain (loss) |
( |
)* | ||||||
| |
|
|
|
|||||
| Net increase (decrease) in net assets resulting from operations |
( |
) | ||||||
| Issuance of common stock in connection with the Merger |
( |
) | ||||||
| Distributions to stockholders: |
||||||||
| From net investment income |
( |
) | ( |
) | ||||
| |
|
|
|
|||||
| Net asset value, end of period |
$ | $ | ||||||
| |
|
|
|
|||||
| Per share market value, end of period |
$ | $ | ||||||
| Total Return (b)(c) |
( |
%) | % | |||||
| Net assets, end of period |
$ | $ | ||||||
| Shares outstanding, end of period |
||||||||
| Ratios to average net assets (c): |
||||||||
| Net investment income |
% | % | ||||||
| |
|
|
|
|||||
| Operating expenses |
%** | % | ||||||
| Interest and other credit facility expenses |
% | % | ||||||
| |
|
|
|
|||||
| Total expenses |
%** | % | ||||||
| |
|
|
|
|||||
| Average debt outstanding |
$ | $ | ||||||
| Portfolio turnover ratio |
% | % | ||||||
| (a) | Calculated using the average shares outstanding method, except for the issuance of common stock in connection with the Merger, which reflects the actual amount per Share for the applicable period. |
| (b) | Total return is based on the change in market price per share during the period and takes into account distributions, if any, reinvested in accordance with the dividend reinvestment plan. The market price per share as of December 31, 2021 and December 31, 2020 was $ |
| (c) | Not annualized for periods less than one year. |
| * | The amount shown may not correspond with the aggregate amount for the period as it includes the effect of the timing of the Merger. |
| ** | The ratio of operating expenses to average net assets and the ratio of total expenses to average net assets is shown net of a permanent incentive fee waiver (see note 3). For the six months ended June 30, 2022, the ratios of operating expenses to average net assets and total expenses to average net assets would be |
June 30, 2022 |
December 31, 2021 |
|||||||
Arcutis Biotherapeutics, Inc |
$ | $ | ||||||
SLR Credit Solutions* |
||||||||
World Insurance Associates, LLC |
||||||||
Apeel Technology, Inc |
||||||||
Glooko, Inc |
||||||||
CC SAG Holdings Corp. (Spectrum Automotive).. |
||||||||
Human Interest, Inc |
||||||||
Atria Wealth Solutions, Inc |
||||||||
RSC Acquisition, Inc |
||||||||
BridgeBio Pharma, Inc |
||||||||
Vapotherm, Inc |
||||||||
Peter C. Foy & Associates Insurance Services, LLC |
||||||||
Inszone Mid, LLC |
||||||||
Ardelyx, Inc |
||||||||
Maurices, Incorporated |
||||||||
RQM+ Corp |
||||||||
Ivy Fertility Services, LLC |
||||||||
Vessco Midco Holdings, LLC |
||||||||
NAC Holdings Corporation |
||||||||
OIS Management Services, LLC |
||||||||
One Touch Direct, LLC |
||||||||
Kaseya, Inc |
||||||||
Foundation Consumer Brands, LLC |
||||||||
Plastics Management, LLC |
||||||||
Southern Orthodontic Partners Management, LLC |
||||||||
Kid Distro Holdings, LLC |
||||||||
MMIT Holdings, LLC |
||||||||
Basic Fun, Inc |
||||||||
Enverus Holdings, Inc |
||||||||
SLR Healthcare ABL* |
||||||||
RxSense Holdings LLC |
||||||||
Erie Construction Mid-west, LLC |
||||||||
SLR Equipment Finance |
||||||||
All State Ag Parts, LLC |
||||||||
American Teleconferencing Services, Ltd |
||||||||
Ultimate Baked Goods Midco LLC |
||||||||
SunMed Group Holdings, LLC |
||||||||
Composite Technology Acquisition Corp |
||||||||
Pinnacle Treatment Centers, Inc |
||||||||
GSM Acquisition Corp |
||||||||
BayMark Health Services, Inc |
||||||||
High Street Buyer, Inc. |
||||||||
Tilley Distribution, Inc |
||||||||
TAUC Management, LLC |
||||||||
Rezolute, Inc |
||||||||
SOC Telemed, Inc |
||||||||
Neuronetics, Inc |
||||||||
Total Commitments |
$ | $ | ||||||
| * | The Company controls the funding of the SLR Credit Solutions and SLR Healthcare ABL commitments and may cancel them at its discretion. |
Shares |
Amount |
|||||||||||||||
Three months ended June 30, 2022 |
Three months ended June 30, 2021 |
Three months ended June 30, 2022 |
Three months ended June 30, 2021 |
|||||||||||||
Shares issued in connection with the Mergers |
$ | $ | ||||||||||||||
Net increase |
$ | $ | ||||||||||||||
Shares |
Amount |
|||||||||||||||
Six months ended June 30, 2022 |
Six months ended June 30, 2021 |
Six months ended June 30, 2022 |
Six months ended June 30, 2021 |
|||||||||||||
Shares issued in connection with the Mergers |
$ | $ | ||||||||||||||
Net increase |
$ | $ | ||||||||||||||
| Common stock issued by the Company (1) |
$ | |||
| |
|
|||
| Assets acquired: |
||||
| Investments, at fair value |
$ | |||
| Cash |
||||
| Other assets |
||||
| |
|
|||
| Total assets acquired |
$ | |||
| |
|
|||
| Liabilities assumed: |
||||
| Debt, at fair value |
$ | |||
| Other liabilities |
||||
| |
|
|||
| Total liabilities assumed |
$ | |||
| |
|
|||
| Net assets acquired |
$ | |||
| |
|
|||
| Total purchase discount |
$ | ( |
) | |
| |
|
| (1) | Based on the market price at closing of $ |
| • | our future operating results, including our ability to achieve objectives as a result of the current COVID-19 pandemic; |
| • | our business prospects and the prospects of our portfolio companies; |
| • | the impact of investments that we expect to make; |
| • | our contractual arrangements and relationships with third parties; |
| • | the dependence of our future success on the general economy and its impact on the industries in which we invest and the impact of the COVID-19 pandemic thereon; |
| • | the impact of any protracted decline in the liquidity of credit markets on our business and the impact of the COVID-19 pandemic thereon; |
| • | the ability of our portfolio companies to achieve their objectives, including as a result of the current COVID-19 pandemic; |
| • | the valuation of our investments in portfolio companies, particularly those having no liquid trading market, and the impact of the COVID-19 pandemic thereon; |
| • | market conditions and our ability to access alternative debt markets and additional debt and equity capital, and the impact of the COVID-19 pandemic thereon; |
| • | our expected financings and investments; |
| • | the adequacy of our cash resources and working capital; |
| • | the timing of cash flows, if any, from the operations of our portfolio companies and the impact of the COVID-19 pandemic thereon; and |
| • | the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments and the impacts of the COVID-19 pandemic thereon. |
| • | changes in the political conditions and relations between the United States, Russia, Ukraine and other nations. |
| • | an economic downturn, including as a result of the current COVID-19 pandemic, could impair our portfolio companies’ ability to continue to operate, which could lead to the loss of some or all of our investments in such portfolio companies; |
| • | a contraction of available credit and/or an inability to access the equity markets, including as a result of the current COVID-19 pandemic, could impair our lending and investment activities; |
| • | interest rate volatility could adversely affect our results, particularly because we use leverage as part of our investment strategy; |
| • | currency fluctuations could adversely affect the results of our investments in foreign companies, particularly to the extent that we receive payments denominated in foreign currency rather than U.S. dollars; |
| • | the ability to realize the anticipated benefits of the Mergers; |
| • | the effects of disruption on our business from the Mergers; |
| • | the combined company’s plans, expectations, objectives and intentions as a result of the Mergers; |
| • | the risks, uncertainties and other factors we identify in Item 1A. — Risk Factors contained in our Annual Report on Form 10-K for the year ended December 31, 2021, elsewhere in this Quarterly Report on Form 10-Q and in our other filings with the SEC. |
| • | the cost of our organization and public offerings; |
| • | the cost of calculating our net asset value, including the cost of any third-party valuation services; |
| • | the cost of effecting sales and repurchases of our shares and other securities; |
| • | interest payable on debt, if any, to finance our investments; |
| • | fees payable to third parties relating to, or associated with, making investments, including fees and expenses associated with performing due diligence reviews of prospective investments and advisory fees; |
| • | transfer agent and custodial fees; |
| • | fees and expenses associated with marketing efforts; |
| • | federal and state registration fees, any stock exchange listing fees; |
| • | federal, state and local taxes; |
| • | independent directors’ fees and expenses; |
| • | brokerage commissions; |
| • | fidelity bond, directors and officers errors and omissions liability insurance and other insurance premiums; |
| • | direct costs and expenses of administration, including printing, mailing, long distance telephone and staff; |
| • | fees and expenses associated with independent audits and outside legal costs; |
| • | costs associated with our reporting and compliance obligations under the 1940 Act and applicable federal and state securities laws; and |
| • | all other expenses incurred by either SLR Capital Management or us in connection with administering our business, including payments under the Administration Agreement that will be based upon our allocable portion of overhead and other expenses incurred by SLR Capital Management in performing its obligations under the Administration Agreement, including rent, the fees and expenses associated with performing compliance functions, and our allocable portion of the costs of compensation and related expenses of our chief compliance officer and our chief financial officer and their respective staffs. |
* |
We have included SLR Credit Solutions, SLR Equipment Finance, SLR Healthcare ABL, SLR Business Credit and Kingsbridge Holdings, LLC within our income producing investment portfolio. |
Total |
Less than 1 Year |
1-3 Years |
3-5 Years |
More Than 5 Years |
||||||||||||||||
| Revolving credit facilities (1) |
$ | 340.6 | $ | — | $ | — | $ | 340.6 | $ | — | ||||||||||
| Unsecured senior notes |
566.0 | 96.0 | 210.0 | 260.0 | — | |||||||||||||||
| Term loans |
100.0 | — | — | 100.0 | — | |||||||||||||||
| (1) | As of June 30, 2022, we had a total of $484.4 million of unused borrowing capacity under our revolving credit facilities, subject to borrowing base limits. |
| Class and Year |
Total Amount Outstanding(1) |
Asset Coverage Per Unit(2) |
Involuntary Liquidating Preference Per Unit(3) |
Average Market Value Per Unit(4) |
||||||||||||
| Credit Facility |
||||||||||||||||
| Fiscal 2022 (through June 30, 2022) |
$ | 212,000 | $ | 423 | — | N/A | ||||||||||
| Fiscal 2021 |
222,500 | 552 | — | N/A | ||||||||||||
| Fiscal 2020 |
126,000 | 421 | — | N/A | ||||||||||||
| Fiscal 2019 |
42,900 | 182 | — | N/A | ||||||||||||
| Fiscal 2018 |
96,400 | 593 | — | N/A | ||||||||||||
| Fiscal 2017 |
245,600 | 1,225 | — | N/A | ||||||||||||
| Fiscal 2016 |
115,200 | 990 | — | N/A | ||||||||||||
| Fiscal 2015 |
207,900 | 1,459 | — | N/A | ||||||||||||
| Fiscal 2014 |
— | — | — | N/A | ||||||||||||
| Fiscal 2013 |
— | — | — | N/A | ||||||||||||
| Fiscal 2012 |
264,452 | 1,510 | — | N/A | ||||||||||||
| SPV Credit Facility |
||||||||||||||||
| Fiscal 2022 (through June 30, 2022) |
128,600 | 256 | — | N/A | ||||||||||||
| 2022 Unsecured Notes |
||||||||||||||||
| Fiscal 2022 (through June 30, 2022) |
— | — | — | N/A | ||||||||||||
| Fiscal 2021 |
150,000 | 372 | — | N/A | ||||||||||||
| Fiscal 2020 |
150,000 | 501 | — | N/A | ||||||||||||
| Fiscal 2019 |
150,000 | 638 | — | N/A | ||||||||||||
| Fiscal 2018 |
150,000 | 923 | — | N/A | ||||||||||||
| Fiscal 2017 |
150,000 | 748 | — | N/A | ||||||||||||
| Fiscal 2016 |
50,000 | 430 | — | N/A | ||||||||||||
| 2022 Tranche C Notes |
||||||||||||||||
| Fiscal 2022 (through June 30, 2022) |
21,000 | 42 | — | N/A | ||||||||||||
| Fiscal 2021 |
21,000 | 52 | — | N/A | ||||||||||||
| Fiscal 2020 |
21,000 | 70 | — | N/A | ||||||||||||
| Fiscal 2019 |
21,000 | 89 | — | N/A | ||||||||||||
| Fiscal 2018 |
21,000 | 129 | — | N/A | ||||||||||||
| Fiscal 2017 |
21,000 | 105 | — | N/A | ||||||||||||
| 2023 Unsecured Notes |
||||||||||||||||
| Fiscal 2022 (through June 30, 2022) |
75,000 | 150 | — | N/A | ||||||||||||
| Fiscal 2021 |
75,000 | 186 | — | N/A | ||||||||||||
| Fiscal 2020 |
75,000 | 250 | — | N/A | ||||||||||||
| Fiscal 2019 |
75,000 | 319 | — | N/A | ||||||||||||
| Fiscal 2018 |
75,000 | 461 | — | N/A | ||||||||||||
| Fiscal 2017 |
75,000 | 374 | — | N/A | ||||||||||||
| 2024 Unsecured Notes |
||||||||||||||||
| Fiscal 2022 (through June 30, 2022) |
125,000 | 249 | — | N/A | ||||||||||||
| Fiscal 2021 |
125,000 | 309 | — | N/A | ||||||||||||
| Fiscal 2020 |
125,000 | 417 | — | N/A | ||||||||||||
| Fiscal 2019 |
125,000 | 531 | — | N/A | ||||||||||||
| 2025 Unsecured Notes |
||||||||||||||||
| Fiscal 2022 (through June 30, 2022) |
85,000 | 170 | — | N/A | ||||||||||||
| 2026 Unsecured Notes |
||||||||||||||||
| Class and Year |
Total Amount Outstanding(1) |
Asset Coverage Per Unit(2) |
Involuntary Liquidating Preference Per Unit(3) |
Average Market Value Per Unit(4) |
||||||||||||
| Fiscal 2022 (through June 30, 2022) |
75,000 | 150 | — | N/A | ||||||||||||
| Fiscal 2021 |
75,000 | 186 | — | N/A | ||||||||||||
| Fiscal 2020 |
75,000 | 250 | — | N/A | ||||||||||||
| Fiscal 2019 |
75,000 | 319 | — | N/A | ||||||||||||
| 2027 Unsecured Notes |
||||||||||||||||
| Fiscal 2022 (through June 30, 2022) |
50,000 | 100 | — | N/A | ||||||||||||
| Fiscal 2021 |
50,000 | 124 | — | N/A | ||||||||||||
| 2027 Series F Unsecured Notes |
||||||||||||||||
| Fiscal 2022 (through June 30, 2022) |
135,000 | 269 | — | N/A | ||||||||||||
| 2042 Unsecured Notes |
||||||||||||||||
| Fiscal 2017 |
— | — | — | N/A | ||||||||||||
| Fiscal 2016 |
100,000 | 859 | — | $ | 1,002 | |||||||||||
| Fiscal 2015 |
100,000 | 702 | — | 982 | ||||||||||||
| Fiscal 2014 |
100,000 | 2,294 | — | 943 | ||||||||||||
| Fiscal 2013 |
100,000 | 2,411 | — | 934 | ||||||||||||
| Fiscal 2012 |
100,000 | 571 | — | 923 | ||||||||||||
| Senior Secured Notes |
||||||||||||||||
| Fiscal 2017 |
— | — | — | N/A | ||||||||||||
| Fiscal 2016 |
75,000 | 645 | — | N/A | ||||||||||||
| Fiscal 2015 |
75,000 | 527 | — | N/A | ||||||||||||
| Fiscal 2014 |
75,000 | 1,721 | — | N/A | ||||||||||||
| Fiscal 2013 |
75,000 | 1,808 | — | N/A | ||||||||||||
| Fiscal 2012 |
75,000 | 428 | — | N/A | ||||||||||||
| Term Loans |
||||||||||||||||
| Fiscal 2022 (through June 30, 2022) |
100,000 | 199 | — | N/A | ||||||||||||
| Fiscal 2021 |
100,000 | 248 | — | N/A | ||||||||||||
| Fiscal 2020 |
75,000 | 250 | — | N/A | ||||||||||||
| Fiscal 2019 |
75,000 | 319 | — | N/A | ||||||||||||
| Fiscal 2018 |
50,000 | 308 | — | N/A | ||||||||||||
| Fiscal 2017 |
50,000 | 250 | — | N/A | ||||||||||||
| Fiscal 2016 |
50,000 | 430 | — | N/A | ||||||||||||
| Fiscal 2015 |
50,000 | 351 | — | N/A | ||||||||||||
| Fiscal 2014 |
50,000 | 1,147 | — | N/A | ||||||||||||
| Fiscal 2013 |
50,000 | 1,206 | — | N/A | ||||||||||||
| Fiscal 2012 |
50,000 | 285 | — | N/A | ||||||||||||
| NEFPASS Facility |
||||||||||||||||
| Fiscal 2021 |
— | — | — | N/A | ||||||||||||
| Fiscal 2020 |
30,000 | 100 | — | N/A | ||||||||||||
| Fiscal 2019 |
30,000 | 128 | — | N/A | ||||||||||||
| Fiscal 2018 |
30,000 | 185 | — | N/A | ||||||||||||
| SSLP Facility |
||||||||||||||||
| Fiscal 2019 |
— | — | — | N/A | ||||||||||||
| Fiscal 2018 |
53,785 | 331 | — | N/A | ||||||||||||
| Total Senior Securities |
||||||||||||||||
| Fiscal 2022 (through June 30, 2022) |
$ | 1,006,600 | $ | 2,008 | — | N/A | ||||||||||
| Fiscal 2021 |
818,500 | 2,029 | — | N/A | ||||||||||||
| Fiscal 2020 |
677,000 | 2,259 | — | N/A | ||||||||||||
| Fiscal 2019 |
593,900 | 2,525 | — | N/A | ||||||||||||
| Fiscal 2018 |
476,185 | 2,930 | — | N/A | ||||||||||||
| Fiscal 2017 |
541,600 | 2,702 | — | N/A | ||||||||||||
| Fiscal 2016 |
390,200 | 3,354 | — | N/A | ||||||||||||
| Fiscal 2015 |
432,900 | 3,039 | — | N/A | ||||||||||||
| Fiscal 2014 |
225,000 | 5,162 | — | N/A | ||||||||||||
| Fiscal 2013 |
225,000 | 5,425 | — | N/A | ||||||||||||
| Fiscal 2012 |
489,452 | 2,794 | — | N/A | ||||||||||||
| (1) | Total amount of each class of senior securities outstanding (in thousands) at the end of the period presented. |
| (2) | The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by all senior securities representing indebtedness. This asset coverage ratio is multiplied by one thousand to determine the Asset Coverage Per Unit. In order to determine the specific Asset Coverage Per Unit for each class of debt, the total Asset Coverage Per Unit is allocated based on the amount outstanding in each class of debt at the end of the period. As of June 30, 2022, asset coverage was 200.8%. |
| (3) | The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it. |
| (4) | Not applicable except for the 2042 Unsecured Notes which were publicly traded. The Average Market Value Per Unit is calculated by taking the daily average closing price during the period and dividing it by twenty-five dollars per share and multiplying the result by one thousand to determine a unit price per thousand consistent with Asset Coverage Per Unit. The average market value for the fiscal 2016, 2015, 2014, 2013 and 2012 periods was $100,175, $98,196, $94,301, $93,392, and $92,302, respectively. |
June 30, 2022 |
December 31, 2021 |
|||||||
| (in millions) |
||||||||
| Arcutis Biotherapeutics, Inc |
$ | 50.1 | $ | 43.5 | ||||
| SLR Credit Solutions* |
44.3 | 44.3 | ||||||
| World Insurance Associates, LLC |
33.3 | — | ||||||
| Apeel Technology, Inc |
32.8 | — | ||||||
| Glooko, Inc |
29.8 | 25.1 | ||||||
| CC SAG Holdings Corp. (Spectrum Automotive).. |
24.3 | 18.8 | ||||||
| Human Interest, Inc |
20.1 | — | ||||||
| Atria Wealth Solutions, Inc |
11.6 | 3.7 | ||||||
| RSC Acquisition, Inc |
10.6 | — | ||||||
| BridgeBio Pharma, Inc |
9.0 | 23.0 | ||||||
| Vapotherm, Inc |
8.6 | — | ||||||
| Peter C. Foy & Associates Insurance Services, LLC |
8.6 | — | ||||||
| Inszone Mid, LLC |
7.9 | 12.5 | ||||||
| Ardelyx, Inc |
7.8 | — | ||||||
| Maurices, Incorporated |
6.0 | 5.7 | ||||||
| RQM+ Corp |
5.1 | 3.8 | ||||||
| Ivy Fertility Services, LLC |
4.9 | 4.5 | ||||||
| Vessco Midco Holdings, LLC |
4.4 | — | ||||||
| NAC Holdings Corporation |
4.3 | 4.8 | ||||||
| OIS Management Services, LLC |
4.0 | — | ||||||
| One Touch Direct, LLC |
4.0 | 7.2 | ||||||
| Kaseya, Inc |
3.9 | — | ||||||
| Foundation Consumer Brands, LLC |
3.0 | 2.3 | ||||||
| Plastics Management, LLC |
2.8 | — | ||||||
| Southern Orthodontic Partners Management, LLC |
2.8 | — | ||||||
| Kid Distro Holdings, LLC |
2.7 | 2.7 | ||||||
| MMIT Holdings, LLC |
2.3 | 2.0 | ||||||
| Basic Fun, Inc |
2.3 | 1.9 | ||||||
| Enverus Holdings, Inc |
1.4 | — | ||||||
| SLR Healthcare ABL* |
1.4 | — | ||||||
| RxSense Holdings LLC |
1.2 | — | ||||||
| Erie Construction Mid-west, LLC |
1.2 | — | ||||||
| SLR Equipment Finance |
1.0 | 5.0 | ||||||
| All State Ag Parts, LLC |
0.9 | — | ||||||
| American Teleconferencing Services, Ltd |
0.9 | 0.6 | ||||||
| Ultimate Baked Goods Midco LLC |
0.8 | 0.8 | ||||||
| SunMed Group Holdings, LLC |
0.8 | 0.8 | ||||||
| Composite Technology Acquisition Corp |
0.6 | — | ||||||
| Pinnacle Treatment Centers, Inc |
0.5 | 1.4 | ||||||
| GSM Acquisition Corp |
0.5 | — | ||||||
| BayMark Health Services, Inc |
0.5 | — | ||||||
| High Street Buyer, Inc |
0.3 | — | ||||||
| Tilley Distribution, Inc |
0.3 | — | ||||||
| TAUC Management, LLC |
0.3 | — | ||||||
| Rezolute, Inc |
— | 5.7 | ||||||
| SOC Telemed, Inc |
— | 4.4 | ||||||
| Neuronetics, Inc |
— | 2.2 | ||||||
| |
|
|
|
|||||
| Total Commitments |
$ | 363.9 | $ | 226.7 | ||||
| |
|
|
|
|||||
| * | The Company controls the funding of the SLR Credit Solutions and SLR Healthcare commitments and may cancel them at its discretion. |
| Date Declared |
Record Date |
Payment Date |
Amount |
|||||||||
| Fiscal 2022 |
||||||||||||
| August 2, 2022 |
August 18, 2022 | September 1, 2022 | $ | 0.136667 | ||||||||
| July 6, 2022 |
July 21, 2022 | August 2, 2022 | 0.136667 | |||||||||
| June 3, 2022 |
June 23, 2022 | July 5, 2022 | 0.136667 | |||||||||
| May 3, 2022 |
May 19, 2022 | June 2, 2022 | 0.136667 | |||||||||
| April 4, 2022 |
April 21, 2022 | May 3, 2022 | 0.136667 | |||||||||
| March 1, 2022 |
March 18, 2022 | April 1, 2022 | 0.41 | |||||||||
| |
|
|||||||||||
| Total 2022 |
$ | 1.093335 | ||||||||||
| |
|
|||||||||||
| Fiscal 2021 |
||||||||||||
| November 3, 2021 |
December 16, 2021 | January 5, 2022 | $ | 0.41 | ||||||||
| August 3, 2021 |
September 23, 2021 | October 5, 2021 | 0.41 | |||||||||
| May 5, 2021 |
June 23, 2021 | July 2, 2021 | 0.41 | |||||||||
| February 24, 2021 |
March 18, 2021 | April 2, 2021 | 0.41 | |||||||||
| |
|
|||||||||||
| Total 2021 |
$ | 1.64 | ||||||||||
| |
|
|||||||||||
| Fiscal 2020 |
||||||||||||
| November 5, 2020 |
December 17, 2020 | January 5, 2021 | $ | 0.41 | ||||||||
| August 4, 2020 |
September 17, 2020 | October 2, 2020 | 0.41 | |||||||||
| May 7, 2020 |
June 18, 2020 | July 2, 2020 | 0.41 | |||||||||
| February 20, 2020 |
March 19, 2020 | April 3, 2020 | 0.41 | |||||||||
| |
|
|||||||||||
| Total 2020 |
$ | 1.64 | ||||||||||
| |
|
|||||||||||
| • | We have entered into the Advisory Agreement with the Investment Adviser. Mr. Gross, our Chairman, Co-Chief Executive Officer and President and Mr. Spohler, our Co-Chief Executive Officer, Chief Operating Officer and board member, are managing members and senior investment professionals of, and have financial and controlling interests in, the Investment Adviser. In addition, Mr. Peteka, our Chief Financial Officer, Treasurer and Secretary serves as the Chief Financial Officer for the Investment Adviser. |
| • | The Administrator provides us with the office facilities and administrative services necessary to conduct day-to-day |
| • | We have entered into a license agreement with the Investment Adviser, pursuant to which the Investment Adviser has granted us a non-exclusive, royalty-free license to use the licensed marks “SOLAR” and “SLR”. |
Increase (Decrease) in LIBOR and SOFR |
(1.00 | %) | 1.00 | % | ||||
Increase (Decrease) in Net Investment Income Per Share Per Year |
(0.08 | ) | $ | 0.11 |
Item 1. |
Legal Proceedings |
Item 1A. |
Risk Factors |
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. |
Defaults Upon Senior Securities |
Item 4. |
Mine Safety Disclosures |
Item 5. |
Other Information |
Item 6. |
Exhibits |
| (1) | Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 Pre-Effective Amendment No. 7 (File No. 333-148734) filed on January 7, 2010. |
| (2) | Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 (File No 333-148734) filed on February 9, 2010. |
| (3) | Previously filed in connection with SLR Senior Investment Corp.’s report on Form 8-K (File No. 814-00849) filed on August 31, 2011. |
| (4) | Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 Post-Effective Amendment No. 6 (File No. 333-172968) filed on November 16, 2012. |
| (5) | Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 Post-Effective Amendment No. 5 (File No. 333-194870) filed on November 22, 2017. |
| (6) | Previously filed in connection with SLR Senior Investment Corp.’s report on Form 10-Q (File No. 814-00849) filed on May 7, 2020. |
| (7) | Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on December 1, 2021. |
| (8) | Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on April 1, 2022. |
| (9) | Previously filed in connection with SLR Investment Corp.’s report on Form 10-Q filed on May 3, 2022. |
| * | Filed herewith. |
| SLR INVESTMENT CORP. | ||
| By: | / S / MICHAEL S. GROSS | |
Michael S. Gross Co-Chief Executive Officer (Principal Executive Officer) | ||
| By: | / S / BRUCE J. SPOHLER | |
Bruce J. Spohler Co-Chief Executive Officer (Principal Executive Officer) | ||
| By: | / S / RICHARD L. PETEKA | |
Richard L. Peteka Chief Financial Officer (Principal Financial and Accounting Officer) | ||