Solar Senior Capital Ltd. (NASDAQ:SUNS) Q1 2019 Earnings Conference Call - Final Transcript
May 07, 2019 • 11:00 am ET
flow loans, 38% are in first lien asset-based loans and only 1.7% are in second lien cash flow loans with a de minimis amount in equity.
SUNS' weighted average yield on a fair value basis was 9.8%. Including investments and repayments across our three business lines, gross originations totaled $56 million and repayments were $37 million, resulting in portfolio growth of just under $20 million.
Now let me provide an update on the credit quality and earnings power of our portfolio. At quarter end, 99.8% of the portfolio on a fair value basis was performing with only one investment on non-accrual. Our internal risk assessment on a weighted average basis of our loan portfolio remained at approximately two with 1 on our 1 to 4 risk rating scale being the least amount of risk. At quarter end, our watch list was approximately 3.6% of the comprehensive portfolio.
Now let me provide an update on our three investment verticals. First, cash flow. At quarter end, our cash flow portfolio totaled $364 million, representing 60% of the overall portfolio. This portfolio is comprised of 46 loans with an average loan size of just under $8 million. The fair value weighted average asset-level yield of the portfolio was just over 8%, consistent with the prior quarter. Our second lien cash flow exposure represents only 1.7% or less than $10 million of the $600 million portfolio and is expected to continue to decline in the coming quarters.
At quarter end, the weighted average EBITDA of our first lien cash flow investments was just over $100 million. On a fair weighted -- fair value weighted average basis, first lien leverage through our investment was 4.5 times and interest coverage was 2.4 times, representing a much lower risk profile than the liquid leveraged loan market. Additionally, the weighted average revenue growth was just over 5%, and the weighted average EBITDA growth was also approximately 5% through the quarter end, reflecting continued positive trends in the fundamentals of our portfolio of cash flow companies.
During the first quarter, we originated cash flow investments of just over $30 million and had repayments of just over $15 million. Thematically, we are continuing to increase our investments in existing credits that are performing well through adding incremental financings.
Now let me turn to North Mill. At quarter end, North Mill had a $118 million portfolio, representing 20% of the overall SUNS' portfolio. It consisted of loans to 80 different borrowers with an average investment of $1.4 million. The weighted average asset-level yield at North Mill was just over 13%. During the first quarter, we funded just over $15 million of new investments and had repayments of just over $18 million. And lastly, for the quarter, North Mill paid a cash dividend of $1.4 million up to SUNS.
Now let me conclude with Gemino, our health care ABL portfolio company. At quarter end, Gemino had a $115 million portfolio, representing just under 20% of comprehensive portfolio. It was comprised of loans