Solar Senior Capital (SUNS) Announces 4M Share Common Stock Offering

September 7, 2016 4:43 PM EDT

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Solar Senior Capital Ltd. (Nasdaq: SUNS) announced that it has commenced a public offering of 4,000,000 shares of its common stock. In connection with the proposed offering, the Company intends to grant the underwriters for the offering a 30-day option to purchase up to an additional 600,000 shares of common stock. The Company's Investment Adviser, Solar Capital Partners, has agreed to bear all of the sales load in this offering.

The Company intends to use the net proceeds from this offering to pay down outstanding indebtedness under its revolving credit facility, and for general corporate purposes, including working capital requirements. However, through reborrowing under its revolving credit facility, the Company intends to make investments in debt securities consistent with its investment objective and for other general corporate purposes. A portion of the net proceeds may also be utilized to further capitalize the First Lien Loan Program, Gemino Healthcare Finance, or any newly created strategic or joint venture.

Upon completion of this offering, for the quarterly periods ended September 30, 2016 to June 30, 2017 (the "Waiver Period"), Solar Capital Partners has agreed to voluntarily waive a portion or all of the incentive fees, and to the extent necessary a portion or all of the base management fees, that Solar Capital Partners would otherwise be entitled to receive in order for Solar Senior Capital to earn net investment income sufficient to maintain Solar Senior Capital's current level of distributions. For additional detail, please see the preliminary prospectus supplement dated September 7, 2016.

Morgan Stanley, Wells Fargo Securities, Citigroup Global Markets, Inc., Deutsche Bank Securities, Goldman, Sachs & Co., and J.P. Morgan are acting as joint book-running managers for this offering. Keefe, Bruyette & Woods, a Stifel Company, B. Riley, Ladenburg Thalmann, Maxim Group LLC, and Oppenheimer & Co. are acting as co-managers.



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