Chicago Atlantic Bdc, Inc. · NASDAQ:LIEN
Chicago Atlantic Bdc — Silver Spike Investment — Merger or Acquisition (February 2024)
15 slides from Chicago Atlantic Bdc's merger presentation, Feb 20, 2024
Slide 1: Acquisition of Loan Portfolio from Chicago Atlantic
Silver Spike Investment Corp. Acquisition of Loan Portfolio from Chicago Atlantic February 20, 2024
Slide 2: Disclaimers and Forward-Looking Statements
2 SILVER SPIKE INVESTMENT CORP. ©2024 All Rights Reserved DISCLAIMERS AND FORWARD - LOOKING STATEMENTS The information contained in this presentation should be viewed in conjunction with the conference call of Silver Spike Investment Corp . (“Silver Spike” or the “Company”) (NASDAQ : SSIC) held on F
Slide 3: Benefits to Shareholders
3 SILVER SPIKE INVESTMENT CORP. ©2024 All Rights Reserved Benefits to Shareholders T HE L OAN P ORTFOLIO A CQUISITION WAS UNANIMOUSLY APPROVED BY THE BOARD OF DIRECTORS OF S ILVER S PIKE I NVESTMENT C ORP . UPON THE RECOMMENDATION OF ITS SPECIAL COMMITTEE CONSISTING SOLELY OF INDEPENDENT DIRECTORS I
Slide 4: Loan Portfolio Acquisition Summary
4 SILVER SPIKE INVESTMENT CORP. ©2024 All Rights Reserved Loan Portfolio Acquisition Summary L OAN P ORTFOLIO A CQUISITION S TRUCTURE • Silver Spike Investment Corp. (“Silver Spike” or the “Company”) to purchase from Chicago Atlantic Loan Portfolio, LLC (“CALP”) a portfolio of loans (the “CALP Loan
Slide 5: Investment Adviser Transaction
5 SILVER SPIKE INVESTMENT CORP. ©2024 All Rights Reserved Investment Adviser Transaction Upon closing of the Joint Venture, Silver Spike would be renamed Chicago Atlantic BDC, Inc., and SSC would be renamed Chicago Atlantic BDC Advisers, LLC. In a separate transaction, Silver Spike Capital, LLC (“SS
Slide 6: Loan Portfolio Acquisition Rationale
6 SILVER SPIKE INVESTMENT CORP. ©2024 All Rights Reserved Loan Portfolio Acquisition Rationale I NCREASED SCALE AND LIQUIDITY • The Loan Portfolio Acquisition would increase Silver Spike’s net assets from less than $100mm to approximately $ 213 mm. 1 • The increased market capitalization of Silver S
Slide 7: CALP Loan Portfolio Overview
7 SILVER SPIKE INVESTMENT CORP. ©2024 All Rights Reserved CALP Loan Portfolio Overview CALP Loan Portfolio Characteristics (at fair value as of 1/1/24) $130mm Total Investments 23 Portfolio Companies 19.5% Gross Weighted Avg Yield to Maturity of Loans 1 1.9 Years Weighted Avg Tenor 100% Senior Secur
Slide 8: Loan Portfolio Acquisition Significantly Increases Silver Spike's Scale
8 SILVER SPIKE INVESTMENT CORP. ©2024 All Rights Reserved Loan Portfolio Acquisition Significantly Increases Silver Spike's Scale P RO F ORMA N ET A SSET V ALUE WILL INCREASE FROM LESS THAN $100 MM TO APPROXIMATELY $ 213 MM 1 Externally - Managed and Publicly Traded BDCs with Approximately $500mm or
Slide 9: Potential for Improved Liquidity
9 SILVER SPIKE INVESTMENT CORP. ©2024 All Rights Reserved 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 ICMB Silver Spike (Current) LRFC GECC OXSQ OFS MRCC PTMN BKCC SCM WHF HRZN SAR TPVG GLAD GAIN PNNT 1 Month Avg Daily Trading Volumes (Shares in mm) BDCs < $200mm Net Asset Value BDCs between $
Slide 10: Pro Forma Portfolio Yield
10 SILVER SPIKE INVESTMENT CORP. ©2024 All Rights Reserved Pro Forma Portfolio Yield P RO FORMA COMBINED PROJECTED 19.1% GROSS WEIGHTED - AVERAGE YTM OF LOANS 1 IS GREATER THAN THE AVERAGE PORTFOLIO YIELD OF 13.4% OF BDC S WITH N ET A SSET V ALUE OF A PPROXIMATELY $500 MM OR L ESS Externally - Manag
Slide 11: Pro Forma Portfolio
11 SILVER SPIKE INVESTMENT CORP. ©2024 All Rights Reserved Pro Forma Portfolio Silver Spike (Current) CALP Loan Portfolio Silver Spike (Pro Forma) N ET A SSET V ALUE ( INCL . C ASH ) $83mm 1 $130mm $213mm 1 I NVESTMENTS AT F AIR V ALUE $57mm $130mm $187mm N UMBER OF I NVESTMENTS 6 24 28 N UMBER OF P
Slide 12: Anticipated Positive Impact to Net Investment Income
12 SILVER SPIKE INVESTMENT CORP. ©2024 All Rights Reserved Anticipated Positive Impact to Net Investment Income T HE LOAN PORTFOLIO ACQUISITION IS EXPECTED TO BE ACCRETIVE TO S ILVER S PIKE ’ S NII Potential future accretion achievable with the implementation of leverage Additional scale anticipated
Slide 13: Appendix
13 SILVER SPIKE CAPITAL ©2023 All Rights Reserved Appendix
Slide 14: Pro Forma Portfolio Assuming the Additional CALP Loans
14 SILVER SPIKE INVESTMENT CORP. ©2024 All Rights Reserved Pro Forma Portfolio Assuming the CALP Loan Portfolio Included the Additional CALP Loans as of 1/1/24 Silver Spike (Current) CALP Loan Portfolio Silver Spike (Pro Forma) N ET A SSET V ALUE ( INCL . C ASH ) $83mm 1 $173mm $255mm 1 I NVESTMENTS
Slide 15: Contact
CONTACT: B ILL H EALY – P ARTNER BILL @ SILVERSPIKECAP . COM SSIC . SILVERSPIKECAP . COM
Silver Spike Investment — Merger or Acquisition (February 2024) on 6ix