Also wondering why SLRC would buy a firm with mostly
"senior secured" loans. These senior secured can't possibly
yield the same as the typical SLRC origination, even though
Gross made it sound like the yield/returns from CF, LLC will
match the eisting SLRC portfolio returns. At first look it appears
that the CF, LLC loans fit more closely into the SUNS portfolio.
I too wonder about the price Gross paid.
Big price move on SLRC on a heavy volume, risk-off trading
day for the entire market. Might be too early to tell if the big
price move sticks based on fundamentals.
I am thinking NII for next full quarter of SLRC with CF, LLC......
should be 81 cents plus any NII from new originations this
quarter from SLRC activities.
looks big!!! I was expecting something. Why else would they sell more shares and take new loans when they are underleveraged? Sounds like SLRC is growing. Any comments are appreciated. Are you expecting that SLRC will now hit the target of 60% leverage? Do you think this is the doing of the new CFO? How will this affect EPS?
It looks like SLRC is getting close to 60% leverage with this deal, up from the high 30% range. This is indeed a big deal, and the increased NII should allow SLRC to increase its dividend in 2013. Just how much the NII will increase, I don't know. Crystal Finance LLC almost seems like a private BDC, as they make loans similar to that of public BDCs.