Solar Senior Capital Ltd. (SUNS) is a publicly traded business development company that invests in senior secured loans and other debt securities issued by middle-market companies in the United States. The company provides financing to a diverse range of industries, including healthcare, technology, and industrial services.
SUNS' investment strategy is focused on generating current income and capital appreciation. The company primarily invests in first lien loans, which are senior-secured obligations with a first-priority claim on a borrower's assets in the event of a default. SUNS also invests in second lien loans and mezzanine debt, which offer higher yields but also carry more risk.
As of September 30, 2021, SUNS had a diversified investment portfolio consisting of 57 companies across 30 different industries. The company's investment portfolio had a fair value of approximately $641.3 million, with 97% of its investments in senior secured loans.
SUNS' management team has a strong track record of underwriting and managing middle-market loans. The company's board of directors is comprised of experienced professionals with deep knowledge of the credit markets.
As a business development company, SUNS is required to distribute at least 90% of its taxable income to shareholders in the form of dividends. The company has a strong history of paying regular dividends to shareholders, with a current annualized dividend yield of approximately 6.3% (as of February 25, 2023).
Investing in SUNS involves risks, including credit risk, interest rate risk, and the risks associated with investing in the middle-market. Before investing in SUNS, it is important to carefully consider your investment objectives, risk tolerance, and other factors that may impact your investment. Consulting with a financial advisor can help you determine whether an investment in SUNS is appropriate for your unique situation.
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