Business
SLR Investment Corp. Issues Letter to Stakeholders
NEW YORK, March 20, 2023 (GLOBE NEWSWIRE) -- SLR Investment Corp. (NASDAQ: SLRC) (the “Company” or “SLRC”) announces today that it has issued an open letter
About this update from Slr Investment Corp.
[{"type":"text","content":"NEW YORK, March 20, 2023 (GLOBE NEWSWIRE) -- SLR Investment Corp. (NASDAQ: SLRC) (the “Company” or “SLRC”) announces today that it has issued an open letter to its stakeholders regarding a business update amid the aftermath of the Silicon Valley Bank (“SVB”) and Signature Bank (“SBNY”) issues. The full text of the letter follows: March 20, 2023 Dear Valued Stakeholder, In light of the recent issues at Silicon Valley Bank and Signature Bank, we would like to provide our stakeholders with an update on our business. SLR Investment Corp. currently believes the issues at SVB and SBNY will not have a significant impact to its operations following the Company’s thorough review. Consistent with our commitment to transparency, we are sharing with this letter our assessment of the impact on SLRC of the FDIC’s decision to place Silicon Valley Bank and Signature Bank under receivership. We have concluded that these bank issues should not have a material adverse effect on the financial performance, portfolio credit quality, or liquidity position of the Company. Outlined below are the key takeaways from the Company’s analysis of the Company’s risk exposures related to SVB and SBNY, which was conducted in collaboration with its investment advisor, SLR Capital Partners, LLC (“SLR”). SLRC Has No Material Direct Financial and Operational Exposure to SVB or SBNY SLRC does not hold any cash or cash equivalents with SVB or SBNY.The Company has not had any lending relationship with SVB, and at December 31, 2022, the Company had approximately $13 million of unfunded exposure to SBNY, representing less than 1.0% of the Company’s $1.5 billion of total credit facilities and unsecured debt outstanding. SLRC’s Balance Sheet Remains Strong The Company continues to have a strong balance sheet, with ample liquidity and capital availability.SLRC’s net leverage ratio of 1.08x at December 31, 2022 is well within its target leverage range of 0.9x – 1.25x.SLRC has no debt maturities until the end of 2024, resulting in a liability structure not subject to near-term refinancing risk.SLRC’s leverage profile is in a strong position to weather a rising rate environment with 50% of SLRC’s $1.1 billion of borrowings at December 31, 2022 comprised of senior unsecured fixed rate notes at a weighted average annual interest rate of 3.9%. SLRC Does Not Have Material Portfolio...