SLR Investment Corp. finalizes its merger with SLR Senior

NEW YORK, April 01, 2022 (GLOBE NEWSWIRE) — SLR Investment Corp. (NASDAQ: SLRC) (“SLRC”) is pleased to announce the closing of the previously announced merger with SLR Senior Investment Corp. (“SUNS”), with SLRC as the surviving company. The combined company will operate as SLR Investment Corp. and will continue to trade on the NASDAQ Global Select Market under the symbol “SLRC”. Based on financial information as of December 31, 2021, the combined company has approximately $2.6 billion in total assets and $1.1 billion in total net assets on a pro forma basis.

“We believe the combined company will provide several long-term benefits to shareholders,” said Bruce Spohler, co-chief executive of SLR Investment Corp. “Reduced base management fees, cost savings from synergies and opportunities to reduce our borrowing costs will improve the combined company’s net interest margin.

“The combined portfolio provides shareholders with increased diversification and access to a broader set of niche private lending strategies,” said Michael Gross, co-chief executive of SLR Investment Corp. “As of December 31, 2021, on a pro forma basis, approximately 70% of the combined company’s revenues were allocated to specialty finance loans and approximately 30% were allocated to treasury loans. We believe that SLRC’s unique combination of asset-based loans and senior secured cash loans to sponsor-backed upper-middle-market US companies provides shareholders with an attractive and differentiated return profile.

As part of the merger, former SUNS shareholders will receive 0.7796 SLRC shares for each SUNS share based on the final exchange ratio, subject to payment of cash in lieu of fractional shares. Following the merger, former SLRC shareholders and former SUNS shareholders own approximately 77% and 23%, respectively, of the combined company.

In addition, upon closing of the Merger, SLRC’s base annual management fee payable by SLRC to SLR Capital Partners, LLC (“SCP”) was reduced from 1.75% to 1.50% on the gross assets up to 200% of SLRC’s total net assets and SLRC has retained the annual base management fee payable by SLRC to SCP of 1.00% on gross assets that exceed 200% of the total net assets of SLRC. SLRC’s target leverage ratio will remain at 0.90x —1.25x debt to equity.

Keefe, Bruyette & Woods, A Stifel company, served as financial advisor and Blank Rome LLP served as legal advisor to the SLRC Special Committee. Houlihan Lokey Capital, Inc. served as financial advisor and Dechert LLP served as legal advisor to the SUNS Special Committee. Katten Muchin Rosenman LLP served as legal counsel to SLRC, SUNS and SCP.

About SLR Investment Corp.

SLR Investment Corp. is a closed-end investment company which has elected to be regulated as a business development company under the Investment Companies Act 1940. A specialty finance company with expertise in several niche markets, SLRC invests primarily directly and indirectly in US middle market companies in the form of senior secured loans, including senior and junior debt securities. and asset-backed loans, including senior secured loans secured on a first lien basis primarily by short-term assets. For more information, please visit: www.slrinvestmentcorp.com

About SLR Capital Partners, LLC

SLR Capital Partners is an SEC-registered investment adviser that invests primarily in leveraged middle-market US companies in the form of cash flow and senior secured asset-based investments. Currently, SLR Capital Partners manages public and private business development companies, private credit funds and separately managed accounts, including as investment advisor to SLR Investment Corp.

Since its inception in 2006, SLR Capital Partners and its affiliates have invested over $15 billion in approximately 1,500 different portfolio companies with approximately 250 private equity sponsors. For more information, please visit: https://www.slrcapitalpartners.com

Forward-looking statements

Certain of the statements contained in this press release constitute forward-looking statements as they relate to future events, future performance or financial condition or the two-step merger of SUNS with and into SLRC (the “Merger”) . Forward-looking statements may include statements regarding: SLRC’s and SUNS’ future operating results and distribution projections; the business prospects of SLRC and SUNS and the prospects of their portfolio companies; and the impact of the investments that SLRC and SUNS plan to make. In addition, words such as “anticipate”, “believe”, “expect”, “seek”, “plan”, “should”, “estimate”, “project” and “intend” indicate forward-looking statements, although all forward-looking statements include these words. The forward-looking statements contained in this press release involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with (i) the expected synergies and savings associated with the Merger; (ii) the ability to realize the anticipated benefits of the Merger, including the expected elimination of certain fees and costs due to the Merger; (iii) the risk that shareholder litigation related to the Merger could result in significant defense and liability costs; (iv) changes in the economy, financial markets and political environment; (v) risks associated with possible disruption of SLRC’s operations or the economy generally due to terrorism, natural disasters or the COVID-19 pandemic; (vi) future changes in laws or regulations (including the interpretation of such laws and regulations by regulatory authorities); (vii) conditions in SLRC’s areas of operation, including with respect to business development companies or regulated investment companies; (viii) general considerations associated with the COVID-19 pandemic; and (ix) other considerations which may be disclosed from time to time in documents and documents filed publicly by the SLRC. SLRC has based the forward-looking statements included in this press release on information available to it as of the date of this press release, and SLRC undertakes no obligation to update such forward-looking statements. Although the SLRC undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to review any additional disclosures it may make to you directly or through reports that the SLRC in the future may file with the Securities and Exchange Commission, including annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K.

Contact
SLR Investment Corp. and SLR Senior Investment Corp.
Investor Relations (646) 308-8770

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