M&A
confidence high
sentiment positive
materiality 0.85
SLR Investment Corp. completes merger with SLR Senior Investment Corp.; combined entity has $2.6B in assets
SLR Investment Corp.
- Exchange ratio of 0.7796 SLRC shares per SUNS share; legacy SLRC owners hold ~77%, former SUNS ~23%.
- Pro forma total assets ~$2.6B, net assets ~$1.1B as of Dec. 31, 2021.
- Base management fee cut by 25 bps to 1.50% on gross assets up to 200% of net assets; 1.00% above 200% retained.
- Assumed $225M credit facility (LIBOR+2.00%-2.50%, matures June 2026) and $85M 3.90% senior notes due March 2025.
- Combined portfolio ~70% specialty finance loans, ~30% cash flow loans; target leverage unchanged at 0.90x-1.25x debt-to-equity.