Solar Senior Capital Ltd. (NASDAQ:SUNS) Q1 2019 Earnings Conference Call Transcript

May 07, 2019 • 11:00 am ET

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Solar Senior Capital Ltd. (NASDAQ:SUNS) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day ladies and gentlemen and welcome to the Solar Senior Capital Limited First Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded.

I would like to introduce your host for today's conference Mr. Michael Gross, Chairman and Chief Executive Officer. Sir, you may begin.

Executive
Michael Gross

Thank you very much, and good morning. Welcome to Solar Senior Capital's earnings call for the first quarter ended March 31, 2019. I'm joined here today by Rich Peteka, our Chief Financial Officer; and Bruce Spohler, our Chief Operating Officer and Solar Capital Partners' Co-managing Partner.

Rich, would you please start off by covering the webcast and forward-looking statements?

Executive
Richard Peteka

Of course. Thanks, Michael. I'd like to remind everyone that today's call and webcast are being recorded. Please note that they are the property of Solar Senior Capital Ltd. and that any unauthorized broadcast in any form are strictly prohibited.

This conference call is being webcast on our website, www.solarseniorcap.com. Audio replays of this call will be made available later today as disclosed in our press release. I would also like to call your attention to the customary disclosures in our press release regarding forward-looking information. Statements made in today's conference call and webcast may constitute forward-looking statements, which relate to future events or our future performance or financial condition. These statements are not guarantees of our future performance, financial condition or results and involve a number of risks and uncertainties.

Additionally, past performance is not indicative of future results. Actual results may differ materially, as a result of a number of factors, including those described from time to time in our filings with the SEC. Solar Senior Capital Ltd. undertakes no duty to update any forward-looking statements unless required to do so by law. To obtain copies of our latest SEC filings, please visit our website or call us at 212-993-1670.

At this time, I'd like to turn the call back to our Chairman and Chief Executive Officer, Michael Gross.

Executive
Michael Gross

Thank you, Rich. Solar Senior Capital reported solid operating performance for the first quarter of 2019. Net asset value was $16.40 per share at March 31, a $0.10 per share increase from prior quarter. In addition, GAAP net investment income of $0.35 per share fully covered distributions for the quarter. At quarter end, our comprehensive portfolio was just under $600 million, an increase of approximately 3% from the prior quarter, due to net originations and the increase in the fair market value of certain portfolio companies. The fundamentals of our portfolio companies remains strong. At March 31, over 98% of Solar Senior's comprehensive portfolio is invested in first lien senior secured loans with 39% of the portfolio in first lien senior secured asset-based loans and the remaining 59% primarily in first lien cash flow loans. Our diversified portfolio of senior secured cash flow and asset-based