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  • Equipment Finance

    Business Overview

    • Strategic portfolio acquisition by Solar Capital in 2017 enabling diversification into secured equipment finance asset class
    • 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
    • Based in Norwalk, CT and currently has ~40 employees, with BDO offices in Bonita Springs, FL, Westlake, OH, Dallas, TX and Brea, CA
    • Diversified portfolio with over 90 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 $500,000 to $5,000,000

    • 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


    Portfolio Snapshot

    As of September 30, 2018
    Investment Portfolio(1):  $376 million
    Number of Issuers:  147
    Average Position Size:    $2.6 million
    % of Investments Senior Secured: 100%
    % of Investments with Fixed Rate Coupon:
    97.5%
    Weighted Average Asset-level Yield: 11.2%(2)
    Equipment Finance Portfolio as a % of ~$1.7 billion Comprehensive Investment Portfolio 22.2% 
    (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.


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