Solar Senior Capital Ltd. (NASDAQ:SUNS) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 11:00 am ET

Previous

Solar Senior Capital Ltd. (NASDAQ:SUNS) Q3 2019 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Q3 2019 Solar Senior Capital Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions].

I would now like to hand the conference over to your speaker, Mr. Michael Gross, Chairman and Co-CEO. Mr. Gross, please go ahead.

Executive
Michael Gross

Thank you very much and good morning. Welcome to Solar Senior Capital's earnings call for the fiscal quarter ended September 30, 2019. I'm joined here today by, Bruce Spohler my Co-CEO; and Rich Peteka, our Chief Financial Officer. 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 Limited and that any unauthorized broadcasts in any form are strictly prohibited. This conference call is being webcast on our website at 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 Co-CEO, Michael Gross.

Executive
Michael Gross

Thank you, Rich. We are pleased to report that Solar Senior Capital continued its solid operating performance in the third quarter of 2019. Net asset value was $16.31 per share and GAAP net investment income of $0.35 per share fully covered our distributions for the quarter. Overall, the fundamentals of our portfolio companies remained strong and SUNS portfolio is 100% performing at September 30.

At quarter-end, our comprehensive portfolio was approximately $650 million, a slight decrease from the prior quarter, due primarily to approximately $6 million of net portfolio repayments across the platform. Importantly, over 98% of our comprehensive portfolio are in first lien senior secured loans, of which almost half are in first lien specialty finance loans.

We are pleased with the progress we've made in our efforts to evolve SUNS into a diversified specialty finance company. The market and economic environment have changed significantly over the last year with the Fed moving from rate increases to rate decreases amidst a backdrop of elevated recession concerns and a