Solar Capital Ltd (SLRC)

[mthiker2004]

My back of the napkin 2012/2013 numbers:

NAV increased from $22.70 (12/31/12) to $22.77 as of 1/13 secondary (priced substantially above NAV). Does not factor in Rug Doctor subsequent event.

Backing Crystal out, portfolio grew from 1,045m to 1,120m, YOY.

2012 NII was $82m. Adding in Crystal's contribution (11% net on $400m portfolio, per CC; $44m) increases NII in 2013 to $126m or $2.80 share (new share count of 45m after 2013 secondary). Even though the CC stated Crystal's contribution was 11% net after expenses and leverage based on portfolio value, I suspect this is actually the net after SLRC's portfolio value ($275m) for Crystal, not the $400m value of Crystal's portfolio. This is a good question for IR.

Interestingly, there were no questions during the CC about the $18m "blue sky" premium that we paid for Crystal ($275m plus liabilities of $143m, less $400m portfolio value). So are we paying $18m to the seller's of Crystal, for the blue sky, plus paying Solar a fee for paying a premium to the sellers? Hummmmm ...