Non-traditional Asset-based Lending (“ABL”): Crystal Financial
- Strategic portfolio acquisition by Solar Capital in 2012 enabling diversification into secured non-traditional ABL asset class
- Crystal Financial LLC (“Crystal”) specializes in making secured loans to companies who typically cannot access traditional ABL and cash flow capital providers
- The core team has been together since 1993 and has originated, underwritten and managed in excess of $20bn of new secured debt for its clients
- Headquartered in Boston, Crystal operates a satellite BDO office in Atlanta, GA. The company employs ~20 individuals.
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U.S. middle market companies across a diverse set of industries
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Typically, companies are facing some form of stress or lack of available capital from traditional banks due to recent regulation
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Senior secured, collateral-based underwriting
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Lend at a discount to liquidation value of collateral
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Floating rate
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Meaningful upfront fees and prepayment penalties
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Meaningful maintenance covenants
Portfolio Snapshot(1)
As of December 31, 2019, Based on Fair Value
|
| Structure: |
Portfolio Company
(Pass-thru Entity)
|
|
Investment Portfolio:
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$644.0 million |
| # of Issuers: |
36 |
| Average Position Size: |
$17.9 million |
| % of Investments Secured: |
100% |
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% of Investments Floating:
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~98.8% |
| Weighted AVG Asset-level Yield: |
10.2%(2) |
| Non-Traditional ABL Portfolio as % of Comprehensive Portfolio: |
35.7% |
(1) (1)Includes Crystal Financial's full portfolio and other asset-based and lender finance senior secured loans held on the Company's balance sheet.
(2) Represents the weighted average of each individual loan's underwritten yield to expected repayment date, which is based on a historical average realized investment duration.