SLR Investment (US:SLRC)2025-02-25 21:01Investment Activity - The company invested approximately $468 million across about 50 portfolio companies in 2024, down from approximately $812 million across over 85 portfolio companies in 2023[412]. - Investments sold, prepaid, or repaid in 2024 totaled approximately $634 million, compared to approximately $750 million in 2023[412]. - The portfolio consisted of 122 companies as of December 31, 2024, with 30.7% in cash flow senior secured loans and 35.8% in asset-based senior secured loans[413]. - The company closed a private offering of $50 million of unsecured notes due 2028 with a fixed interest rate of 6.14%[405]. - The Company authorized a share repurchase program of up to $50 million on May 7, 2024, with no shares repurchased during the fiscal year ended December 31, 2024[426]. - The Company and the Investor contributed combined equity capital of $95.75 million to SSLP as of December 31, 2024, an increase from $85.75 million as of December 31, 2023[429]. - The company committed $50 million to SSLP for providing administrative services related to its ongoing business affairs[477]. Financial Performance - SLR Credit had net income of $24.9 million in 2024, significantly up from $6.5 million in 2023, on gross income of $55.2 million compared to $57.8 million[417]. - KBHT achieved net income of $12.0 million for the year ended December 31, 2024, compared to $9.1 million for the year ended December 31, 2023, marking a 32.0% increase[421]. - SLR Business Credit reported a net income of $10.5 million for the year ended December 31, 2024, compared to a net loss of $9.5 million for the year ended December 31, 2023[425]. - The company reported a net income of $13,373 thousand for 2024, compared to $4,469 thousand in 2023, which is an increase of 199.5%[440]. - The company reported a net increase in net assets from operations of $95.8 million and $76.4 million for the fiscal years ended December 31, 2024 and 2023, respectively[458]. - The company reported total outstanding senior securities of $342.043 million for Fiscal 2024, with an asset coverage ratio of $642 per unit[480]. - The company reported a net realized loss on investments and cash equivalents of $2,252,000 for 2024, a significant improvement from a loss of $27,983,000 in 2023[528]. Asset and Liability Management - As of December 31, 2024, SLR Credit had total funded loans of approximately $317.6 million on total assets of $364.3 million[416]. - As of December 31, 2024, total assets for SSLP increased to $197,461 thousand from $195,868 thousand in 2023, representing a growth of 0.6%[439]. - Total liabilities decreased to $99,279 thousand in 2024 from $108,070 thousand in 2023, a reduction of 8.2%[439]. - Total liabilities decreased to $1,456,491,000 in 2024 from $1,537,229,000 in 2023, representing a reduction of approximately 5.3%[526]. - The company had a total of $462.9 million of unused borrowing capacity under its Credit Facility and SPV Credit Facility[459]. - The company had a net increase in cash and cash equivalents of $70,117,000 for 2024, compared to a decrease of $(84,179,000) in 2023[535]. Investment Income and Returns - Interest income for SSLP rose significantly to $24,330 thousand in 2024, up from $10,209 thousand in 2023, marking an increase of 138.5%[440]. - Net investment income for SSLP increased to $12,745 thousand in 2024, compared to $3,273 thousand in 2023, reflecting a growth of 288.5%[440]. - Total investment income for the year ended December 31, 2024, was $232,431,000, slightly up from $229,312,000 in 2023[528]. - Net investment income increased to $96,310,000 in 2024, compared to $92,091,000 in 2023, reflecting a growth of approximately 4%[528]. - The total return for the year ended December 31, 2024, was 16.22%, a significant increase compared to 2.77% in 2023[484]. Debt and Financing - The SSLP Facility was expanded to $150 million on October 20, 2023, with borrowings outstanding of $96.6 million as of December 31, 2024[428]. - Outstanding borrowings under the SPV Credit Facility totaled $165.1 million as of December 31, 2024[463]. - The Credit Facility was amended to include $695 million of revolving credit and $140 million of term loans, with a maturity date in August 2029[462]. - The company closed a private offering of $49 million of the 2027 Series G Unsecured Notes with a fixed interest rate of 6.24% on December 16, 2024[461]. - The company closed a private offering of $75 million of the 2026 Unsecured Notes with a fixed interest rate of 4.375%[467]. - The company has floating rate investments primarily based on SOFR, which could lead to volatility in net investment income based on interest rate changes[502]. Portfolio Composition - The company’s investment portfolio is primarily composed of private transactions exempt from registration under the Securities Act, indicating a focus on non-public investments[584]. - The largest industry classification is Diversified Financial Services, accounting for 27.7% of total investments[556]. - The second-largest sector is Multi-Sector Holdings, representing 18.6% of total investments[556]. - Health Care Providers & Services make up 13.6% of the total investments[556]. - The portfolio is diversified across sectors including health care, insurance, and software[435]. Compliance and Governance - The company has adopted a formal code of ethics governing the conduct of its officers and directors, ensuring compliance with regulatory requirements[501]. - The company is in compliance with all financial and operational covenants required by the Debt Instruments as of December 31, 2024[469]. - The company intends to qualify as a RIC and is required to distribute at least 90% of its investment company taxable income to stockholders annually[450]. - The company may face limitations on its ability to make distributions due to asset coverage tests and credit facility provisions[496].