Solar Capital Ltd (SLRC)

[Jan814]

To t2four4:
Yes, the SLRC 6.75% senior notes (Symbol SLRA) are higher on the SLRC capital structure, but if an investor is confident in the SLRC management team why not take the much higher dividend yield of the common over the interest yield on the notes. We buy BDC's for the high dividend yields coupled with the expectation of capital gains from an increase in price of the stock. Just my opinion.

To all:
On an unrelated subject, I put some words on TCPC over on the Yahoo board if anyone wants to go over there and take a look.
Also I looked at the four new BDC's that recently came public in the last three months and considering size, investment advisor, underwriting team, initial dividend declaration, pro forma price to book, etc., I found WhiteHorse Finance (WHF) to be most interesting. And this morning, five analysts came out with initial coverage on the stock. They were all "buys" and the target prices averaged $15.90. (stock is at $14.75). If anyone is interested I can tab the ratings of each analyst and each target price.

Happy New Year.
Jan