• 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 June 30, 2020
    Investment Portfolio1: $350 million
    Number of Issuers:  113
    Average Position Size:   $3.1 million
    % of Investments Senior Secured: 100%
    % of Investments with Fixed Rate Coupon:
    Weighted Average Asset-level Yield: 10.4%(2)
    Equipment Finance as a % of Comprehensive 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). Loans held on Solar Capital's balance sheet based on fair value and loans owned within NEF Holdings based on par.