Solar Capital Ltd (SLRC)

[Jan814]

mthiker2004,

Correct me if I am wrong, but the $145 million debt absorption by SLRC is a liability addition to the balance sheet and is a productive liability because it is that debt that helped fund the loans issued by Crystal which in turn produce the NII and subsequently the dividends. The actual cash outlay by SLRC for this acquisition is $275 million and they have plenty of dry powder to pay that $275. Now, in the accounting world there may be an adjustment to the income statement to get that liability on the SLRC balance sheet, but given the growth to SLRC this acquisition will provide, we shouldn't be too bothered.

I have been doing a few numbers with what little information we have, and this looks like a sweet deal to me.

Jan