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Portfolio | Investment Strategies | Non-Traditional ABL

  • Non-Traditional Asset-based Lending

    Business Overview

    • Acquired by Solar Capital in 2012, 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.

    Borrower Profile Characteristics

    • U.S. middle market companies across a diverse set of industries

    • Typically, companies are facing some form of stress or lack of available capital from traditional banks due to recent regulation

    Typical Transaction Profile

    • Senior secured, collateral-based underwriting

    • Lend at a discount to liquidation value of collateral

    • Floating rate

    • Meaningful upfront fees and prepayment penalties

    • Meaningful maintenance covenants

    Portfolio Snapshot(1)

    As of March 31, 2019
    Structure: Portfolio Company
    (Pass-thru Entity)
    Investment Portfolio: $641 million
    # of Issuers:  34
    Average Position Size:   ~$19 million
    % of Investments Secured: 100%
    % of Investments Floating: ~95% 
    Weighted Average Asset-level Yield:
    		 11.7%(2)
    Non-Traditional ABL Portfolio as % of ~$1.8 billion Comprehensive Investment Portfolio  35.9%
    (1) Includes Crystal Financial's full portfolio (and SLRC's ownership of Crystal's SBIC) and asset-based and lender finance senior secured loans 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.





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