SuRo Capital Corp. Reports Second Quarter 2022 Financial Results

Net Asset Value of $9.24 Per Share as of June 30, 2022

Modified Dutch Auction Tender Offer to Repurchase Up To 2 Million Shares to Commence on August 8

NEW YORK, Aug. 03, 2022 (GLOBE NEWSWIRE) --  SuRo Capital Corp. (“SuRo Capital”, the “Company”, “we”, “us”, and “our”) (Nasdaq: SSSS) today announced its financial results for the quarter ended June 30, 2022. Net assets totaled approximately $280.2 million, or $9.24 per share, at June 30, 2022 as compared to $12.22 per share at March 31, 2022 and $16.56 per share at June 30, 2021.

“As we previously mentioned, equity market performance in the first half of 2022 was the worst first half performance in over 50 years. Private markets were no exception as numerous late-stage unicorns experienced turbulent market conditions. This turbulence has forced new financing rounds at valuations below previous capital raises, secondary trades at significant discounts, and lower internal valuations. These new dynamics, while impactful on short-term valuations, have provided us with compelling long-term investment opportunities. With greater than 40% of our investable assets in cash, we are well-positioned to take advantage of these attractive opportunities,” said Mark Klein, Chairman and Chief Executive Officer of SuRo Capital.  

Klein continued, “To that end, during the second quarter, we added two new companies to our investment portfolio: Whoop, Inc. and EDGE Markets, Inc. (via SuRo Capital Sports, LLC). We also made a follow-on investment in Shogun Enterprises, Inc. (d/b/a Hearth). With over $150.0 million in cash at quarter-end, we remain confident and opportunistic in seeking out compelling, high-growth companies.   Given current conditions, we believe being judicious on price when assessing potential investment opportunities is paramount to creating shareholder value.”

“As we have consistently demonstrated, SuRo Capital is committed to initiatives that enhance shareholder value, and we believe the market is currently undervaluing our portfolio. Accordingly, on August 1, 2022, our Board of Directors authorized a modified Dutch Auction Tender Offer to purchase up to 2 million shares of our common stock at a price per share between $6.00 and $7.00. This modified Dutch Auction Tender Offer comes in addition to the $15.0 million expansion of our Share Repurchase Program to $55.0 million authorized by our Board of Directors in March. Assuming 2 million shares tender, SuRo Capital will have repurchased over 3 million shares, or approximately 10% of our outstanding shares, since the expansion of the Share Repurchase Program in mid-March. Given our stock is trading at a significant discount to net asset value, coupled with the extreme market volatility, we believe the modified Dutch Auction Tender offer to be an efficient and accretive deployment of capital,” Klein concluded.

Investment Portfolio as of June 30, 2022

At June 30, 2022, SuRo Capital held positions in 40 portfolio companies – 32 privately held and 8 publicly held, some of which may be subject to certain lock-up provisions – with an aggregate fair value of approximately $200.1 million.   The Company’s top five portfolio company investments accounted for approximately 58% of the total portfolio at fair value as of June 30, 2022.

Top Five Investments as of June 30, 2022

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Note: Total may not sum due to rounding.

Second Quarter 2022 Investment Portfolio Activity

During the three months ended June 30, 2022, SuRo Capital funded the following new and follow-on investments:

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(1)   Investment made through SuRo Capital Sports, LLC.During the three months ended June 30, 2022, SuRo Capital exited or received proceeds from the following investments: