Solar Senior Capital Ltd. (NASDAQ:SUNS) Q4 2019 Earnings Conference Call - Final Transcript

Feb 21, 2020 • 11:00 am ET


Solar Senior Capital Ltd. (NASDAQ:SUNS) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the Quarter Four 2019 Solar Senior Capital Limited 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 now like to turn the conference over to your host, Michael Gross, Chairman and Co-CEO. Thank you. Please go ahead.

Michael Gross

Thank you very much operator. Good morning everyone. Welcome to our earnings call for the fiscal year ended December 31, 2019. I'm joined here today by Bruce Spohler, our Co-CEO; and Rich Peteka, our Chief Financial Officer.

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

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 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 Limited 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.

Michael Gross

Thank you, Rich.

We're pleased to report a successful quarter -- fourth quarter 2019 for Solar Senior Capital which culminated another year of continued solid operating performance.Net asset value was $16.32 per share at December 31st, consistent with the prior-quarter and GAAP net investment income was $0.35 per share. Overall, the fundamentals of our portfolio companies remained strong and SUNS portfolio was 100% performing at December 31st.

At year-end, our comprehensive portfolio was approximately $665 million in line with the prior-quarter. Importantly, almost 99% of our comprehensive portfolio investments are in first-lien senior secured loans, of which 49% are in first-lien specialty finance loans, 50% are in first-lien cash flow loans, and just over 1% consists of one second-lien cash flow loan. We're pleased with the progress we have made and our efforts to evolve SUNS into a diversified specialty finance company.

Recent recession concerns have abated due to continued overall positive economic data. Cash flow