• Equipment Finance: Nations Equipment Finance

    Business Overview

    • Acquired by SLRC in 2017, Nations Equipment Finance (“NEF,” or “Nations”) is an independent equipment finance company that provides secured financing solutions to companies in the United States and Canada

    • Founded in 2010 by a team of former GE Capital senior executives to fill a void in the marketplace created by the dislocation of traditional lenders post the 2008 – 2009 recession

    • Based in Norwalk, CT and currently has ~40 employees, with BDO offices in Estero, FL, Westlake, OH, Dallas, TX and Brea, CA

    • Diversified portfolio with over 14090 portfolio companies

    • 100% collateralized investment portfolio

    Borrower Profile Characteristics

    • Primarily privately-owned, medium-sized businesses in the US and Canada; good companies with high percentage of fixed assets that are in need of liquidity

    • Borrowers typically have limited access to bank financing

    • Equipment financed is mission critical to clients’ success

    Typical Transaction Profile

    • Size ranges from $1,000,000 to $50,000,000

    • 3 – 7 year equipment leases or loans (4+ year average life); term of transaction shorter than equipment useful life

    • All equipment inspected and appraised at close with updates as required over time

    Financial & Portfolio Snapshot

    As of December 31, 2019
    Investment Portfolio1: $396 million
    Number of Issuers:  134
    Average Position Size:   $3.0 million
    % of Investments Senior Secured: 100%
    % of Investments with Fixed Rate Coupon:
    Weighted Average Asset-level Yield: 10.0%(2)
    Equipment Finance as a % of Comprehensive Portfolio: 22.0%
    (1) The Equipment Finance portfolio includes equipment financings held directly on SLRC’s balance sheet and in NEF Holdings LLC, a pass-thru portfolio company.
    (2) Represents the weighted average of each individual loan's yield to maturity, excluding residual upside on tax leases.