Asset-based Lending: Crystal Financial

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

Financial & Portfolio Snapshot

As of March 31, 2018, Based on Fair Value
Structure: Portfolio Company
(Pass-thru Entity)
Investment Portfolio: ~$350 million
# of Issuers:   24
Average Position Size:  ~$15 million
% of Investments Secured: 100%
% of Investments Floating:  ~98%
% of Investments Performing: 100%
% Direct Energy Exposure: 0.0%
 Weighted Average Asset-level Yield: ~12.4%