Business
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
About this update from Slr Investment Corp.
[{"type":"text","content":"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.\n 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...