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SLR Senior Lending Program LLC
 6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
SLR Senior Lending Program LLC

Note 17. SLR Senior Lending Program LLC

On October 12, 2022, the Company entered into an amended and restated limited liability company agreement with Sunstone Senior Credit L.P. (the “Investor”) to create a joint venture vehicle, SLR Senior Lending Program LLC (“SSLP”). SSLP is expected to invest primarily in senior secured cash flow loans. The Company and the Investor each have made initial equity commitments of $50,000, resulting in a total equity commitment of $100,000. Investment decisions and all material decisions in respect of SSLP must be approved by representatives of the Company and the Investor.

On December 1, 2022, SSLP commenced operations. On December 12, 2022, SSLP, as servicer, and SLR Senior Lending Program SPV LLC (“SSLP SPV”), a newly formed wholly owned subsidiary of SSLP, as borrower, entered into a $100,000 senior secured revolving credit facility (the “SSLP Facility”) with Goldman Sachs Bank USA acting as administrative agent. On October 20, 2023, the SSLP Facility was expanded to $150,000. Effective with an amendment on March 25, 2024, the SSLP Facility is scheduled to mature on December 12, 2028 and generally bears interest at a rate of SOFR plus 2.90%. SSLP and SSLP SPV, as applicable, have made certain customary representations and warranties and are required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. The SSLP Facility also includes usual and customary events of default for credit facilities of this nature. At June 30, 2024, there were $135,800 of borrowings outstanding on the SSLP Facility.

As of June 30, 2024 and December 31, 2023, the Company and the Investor had contributed combined equity capital in the amount of $95,750 and $85,750, respectively. As of June 30, 2024 and December 31, 2023, the Company and the Investor’s combined remaining commitments to SSLP totaled $4,250 and $14,250, respectively. The Company, along with the Investor, controls the funding of SSLP, and SSLP may not call the unfunded commitments of the Company or the Investor without the approval of both the Company and the Investor.

As of June 30, 2024 and December 31, 2023, SSLP had total assets of $236,966 and $195,868, respectively. For the same periods, SSLP’s portfolio consisted of floating rate senior secured loans to 39 and 32 different borrowers, respectively. For the three months ended June 30, 2024, SSLP invested $11,444 in 7 portfolio companies. Investments prepaid totaled $7,702 for the three months ended June 30, 2024. For the three months ended June 30, 2023, SSLP invested $32,557 in 9 portfolio companies. Investments prepaid totaled $182 for the three months ended June 30, 2023.

SSLP Portfolio as of June 30, 2024

 

Description

 

Industry

 

Spread
Above
Index(1)

 

Floor

 

 

Interest
Rate(2)

 

 

Maturity
Date

 

Par
Amount

 

 

Cost

 

 

Fair
Value(3)

 

Accession Risk Management Group, Inc.

 

Insurance

 

S+550

 

 

0.75

%

 

 

10.98

%

 

11/1/29

 

$

6,923

 

 

$

6,898

 

 

$

6,923

 

Aegis Toxicology Sciences Corporation (4)

 

Health Care Providers & Services

 

S+550

 

 

1.00

%

 

 

11.09

%

 

5/9/25

 

 

2,921

 

 

 

2,921

 

 

 

2,921

 

Alkeme Intermediary Holdings, LLC (4)

 

Insurance

 

S+600

 

 

1.00

%

 

 

11.44

%

 

10/28/26

 

 

6,026

 

 

 

5,872

 

 

 

6,026

 

All States Ag Parts, LLC (4)

 

Trading Companies & Distributors

 

S+600

 

 

1.00

%

 

 

11.60

%

 

9/1/26

 

 

2,122

 

 

 

2,122

 

 

 

2,122

 

Apex Service Partners, LLC

 

Diversified Consumer Services

 

S+700

 

 

1.00

%

 

 

11.83

%

 

10/24/30

 

 

5,834

 

 

 

5,698

 

 

 

5,834

 

Atria Wealth Solutions, Inc. (4)

 

Diversified Financial Services

 

S+650

 

 

1.00

%

 

 

12.09

%

 

11/29/24

 

 

2,456

 

 

 

2,456

 

 

 

2,456

 

BayMark Health Services, Inc. (4)

 

Health Care Providers & Services

 

S+500

 

 

1.00

%

 

 

10.60

%

 

6/11/27

 

 

4,013

 

 

 

4,013

 

 

 

3,932

 

CC SAG Holdings Corp. (4)

 

Diversified Consumer Services

 

S+525

 

 

0.75

%

 

 

10.59

%

 

6/29/28

 

 

8,923

 

 

 

8,923

 

 

 

8,923

 

Crewline Buyer, Inc.

 

IT Services

 

S+675

 

 

1.00

%

 

 

12.08

%

 

11/8/30

 

 

5,084

 

 

 

4,960

 

 

 

5,084

 

CVAUSA Management, LLC (4)

 

Health Care Providers & Services

 

S+650

 

 

1.00

%

 

 

11.75

%

 

5/22/29

 

 

5,384

 

 

 

5,235

 

 

 

5,384

 

ENS Holdings III Corp. & ES Opco USA LLC (4)

 

Trading Companies & Distributors

 

S+475

 

 

1.00

%

 

 

10.19

%

 

12/31/25

 

 

1,080

 

 

 

1,080

 

 

 

1,080

 

Erie Construction Mid-west, LLC

 

Building Products

 

S+475

 

 

1.00

%

 

 

10.15

%

 

7/30/27

 

 

8,229

 

 

 

8,229

 

 

 

8,229

 

Exactcare Parent, Inc.

 

Health Care Providers & Services

 

S+650

 

 

1.00

%

 

 

11.84

%

 

11/5/29

 

 

3,220

 

 

 

3,135

 

 

 

3,220

 

Fertility (ITC) Investment Holdco, LLC (4)

 

Health Care Providers & Services

 

S+650

 

 

1.00

%

 

 

11.78

%

 

1/3/29

 

 

5,925

 

 

 

5,774

 

 

 

5,925

 

Foundation Consumer Brands, LLC (4)

 

Personal Products

 

S+625

 

 

1.00

%

 

 

11.73

%

 

2/12/27

 

 

8,551

 

 

 

8,551

 

 

 

8,551

 

GSM Acquisition Corp. (4)

 

Leisure Equipment & Products

 

S+500

 

 

1.00

%

 

 

10.46

%

 

11/16/26

 

 

8,497

 

 

 

8,497

 

 

 

8,497

 

Higginbotham Insurance Agency, Inc. (4)

 

Insurance

 

S+550

 

 

1.00

%

 

 

10.94

%

 

11/25/28

 

 

7,535

 

 

 

7,535

 

 

 

7,535

 

High Street Buyer, Inc.

 

Insurance

 

S+525

 

 

0.75

%

 

 

10.59

%

 

4/16/28

 

 

7,565

 

 

 

7,565

 

 

 

7,565

 

iCIMS, Inc.(4)

 

Software

 

S+725

 

 

0.75

%

 

 

12.58

%

 

8/18/28

 

 

3,150

 

 

 

3,109

 

 

 

3,150

 

Kaseya, Inc.(4)

 

Software

 

S+550

 

 

0.75

%

 

 

10.83

%

 

6/23/29

 

 

9,172

 

 

 

9,172

 

 

 

9,172

 

Kid Distro Holdings, LLC(4)

 

Software

 

S+550

 

 

1.00

%

 

 

10.94

%

 

10/1/27

 

 

8,893

 

 

 

8,893

 

 

 

8,893

 

Legacy Service Partners, LLC

 

Diversified Consumer Services

 

S+575

 

 

1.00

%

 

 

11.23

%

 

1/9/29

 

 

1,947

 

 

 

1,900

 

 

 

1,947

 

Maxor Acquisition, Inc.(4)

 

Health Care Providers & Services

 

S+675

 

 

1.00

%

 

 

12.29

%

 

3/1/29

 

 

6,089

 

 

 

5,923

 

 

 

6,089

 

Medrina, LLC

 

Health Care Providers & Services

 

S+625

 

 

1.00

%

 

 

11.55

%

 

10/20/29

 

 

2,398

 

 

 

2,341

 

 

 

2,398

 

ONS MSO, LLC(4)

 

Health Care Providers & Services

 

S+625

 

 

1.00

%

 

 

11.57

%

 

7/8/26

 

 

5,878

 

 

 

5,753

 

 

 

5,878

 

Plastics Management, LLC(4)

 

Health Care Providers & Services

 

S+500

 

 

1.00

%

 

 

10.44

%

 

8/18/27

 

 

5,608

 

 

 

5,461

 

 

 

5,608

 

Retina Midco, Inc.(4)

 

Health Care Providers & Services

 

S+575

 

 

1.00

%

 

 

11.34

%

 

1/31/26

 

 

9,962

 

 

 

9,784

 

 

 

9,962

 

RQM+ Corp.(4)

 

Life Sciences Tools & Services

 

S+575

 

 

1.00

%

 

 

11.35

%

 

8/12/26

 

 

5,924

 

 

 

5,924

 

 

 

5,776

 

RxSense Holdings LLC(4)

 

Diversified Consumer Services

 

S+500

 

 

1.00

%

 

 

10.43

%

 

3/13/26

 

 

8,922

 

 

 

8,922

 

 

 

8,922

 

SunMed Group Holdings, LLC(4)

 

Health Care Equipment & Supplies

 

S+550

 

 

0.75

%

 

 

10.93

%

 

6/16/28

 

 

8,902

 

 

 

8,902

 

 

 

8,902

 

The Townsend Company, LLC(4)

 

Commercial Services & Supplies

 

S+625

 

 

1.00

%

 

 

11.59

%

 

8/15/29

 

 

3,557

 

 

 

3,477

 

 

 

3,557

 

Tilley Distribution, Inc.(4)

 

Trading Companies & Distributors

 

S+600

 

 

1.00

%

 

 

11.49

%

 

12/31/26

 

 

5,637

 

 

 

5,637

 

 

 

5,524

 

Ultimate Baked Goods Midco LLC(4)

 

Packaged Foods & Meats

 

S+625

 

 

1.00

%

 

 

11.69

%

 

8/13/27

 

 

8,909

 

 

 

8,909

 

 

 

8,864

 

United Digestive MSO Parent, LLC(4)

 

Health Care Providers & Services

 

S+650

 

 

1.00

%

 

 

11.80

%

 

3/30/29

 

 

3,574

 

 

 

3,476

 

 

 

3,574

 

Urology Management Holdings, Inc.(4)

 

Health Care Providers & Services

 

S+625

 

 

1.00

%

 

 

11.73

%

 

6/15/26

 

 

3,684

 

 

 

3,607

 

 

 

3,684

 

UVP Management, LLC(4)

 

Health Care Providers & Services

 

S+625

 

 

1.00

%

 

 

11.73

%

 

9/15/25

 

 

4,883

 

 

 

4,791

 

 

 

4,736

 

Vessco Midco Holdings, LLC(4)

 

Water Utilities

 

S+450

 

 

1.00

%

 

 

9.75

%

 

11/2/26

 

 

4,282

 

 

 

4,282

 

 

 

4,282

 

WCI-BXC Purchaser, LLC

 

Distributors

 

S+625

 

 

1.00

%

 

 

11.59

%

 

11/6/30

 

 

2,890

 

 

 

2,820

 

 

 

2,890

 

West-NR Parent, Inc.(4)

 

Insurance

 

S+625

 

 

1.00

%

 

 

11.68

%

 

12/27/27

 

 

6,788

 

 

 

6,670

 

 

 

6,788

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

219,217

 

 

$

220,803

 

 

(1)
Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the SOFR. These instruments are typically subject to a SOFR floor.
(2)
Floating rate debt investments typically bear interest at a rate determined by reference to the SOFR (“S”), and which typically reset monthly, quarterly or semi-annually. For each debt investment, we have provided the current interest rate in effect as of June 30, 2024.
(3)
Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board’s valuation process described elsewhere herein.
(4)
The Company also holds this security on its Consolidated Statements of Assets and Liabilities.

SSLP Portfolio as of December 31, 2023

 

Description

 

Industry

 

Spread
Above
Index(1)

 

Floor

 

 

Interest
Rate(2)

 

 

Maturity
Date

 

Par
Amount

 

 

Cost

 

 

Fair
Value(3)

 

Aegis Toxicology Sciences Corporation (4)

 

Health Care Providers & Services

 

S+550

 

 

1.00

%

 

 

11.13

%

 

5/9/25

 

$

2,947

 

 

$

2,947

 

 

$

2,947

 

Alkeme Intermediary Holdings, LLC (4)

 

Insurance

 

S+650

 

 

1.00

%

 

 

11.96

%

 

10/28/26

 

 

3,017

 

 

 

2,934

 

 

 

3,017

 

All States Ag Parts, LLC (4)

 

Trading Companies & Distributors

 

S+600

 

 

1.00

%

 

 

11.61

%

 

9/1/26

 

 

2,133

 

 

 

2,133

 

 

 

2,133

 

Apex Service Partners, LLC

 

Diversified Consumer Services

 

S+700

 

 

1.00

%

 

 

11.87

%

 

10/24/30

 

 

4,905

 

 

 

4,784

 

 

 

4,783

 

Atria Wealth Solutions, Inc. (4)

 

Diversified Financial Services

 

S+650

 

 

1.00

%

 

 

11.97

%

 

5/31/24

 

 

2,468

 

 

 

2,468

 

 

 

2,468

 

BayMark Health Services, Inc. (4)

 

Health Care Providers & Services

 

S+500

 

 

1.00

%

 

 

10.61

%

 

6/11/27

 

 

4,033

 

 

 

4,033

 

 

 

4,033

 

CC SAG Holdings Corp. (4)

 

Diversified Consumer Services

 

S+575

 

 

0.75

%

 

 

11.22

%

 

6/29/28

 

 

8,969

 

 

 

8,969

 

 

 

8,969

 

CVAUSA Management, LLC (4)

 

Health Care Providers & Services

 

S+650

 

 

1.00

%

 

 

11.74

%

 

5/22/29

 

 

5,412

 

 

 

5,251

 

 

 

5,412

 

ENS Holdings III Corp. & ES Opco USA LLC (4)

 

Trading Companies & Distributors

 

S+475

 

 

1.00

%

 

 

10.20

%

 

12/31/25

 

 

1,086

 

 

 

1,086

 

 

 

1,086

 

Erie Construction Mid-west, LLC

 

Building Products

 

S+475

 

 

1.00

%

 

 

10.20

%

 

7/30/27

 

 

8,457

 

 

 

8,457

 

 

 

8,457

 

Fertility (ITC) Investment Holdco, LLC (4)

 

Health Care Providers & Services

 

S+650

 

 

1.00

%

 

 

11.97

%

 

1/3/29

 

 

5,955

 

 

 

5,791

 

 

 

5,955

 

Foundation Consumer Brands, LLC (4)

 

Personal Products

 

S+625

 

 

1.00

%

 

 

11.79

%

 

2/12/27

 

 

8,641

 

 

 

8,641

 

 

 

8,641

 

GSM Acquisition Corp. (4)

 

Leisure Equipment & Products

 

S+500

 

 

1.00

%

 

 

10.47

%

 

11/16/26

 

 

8,541

 

 

 

8,541

 

 

 

8,541

 

Higginbotham Insurance Agency, Inc. (4)

 

Insurance

 

S+550

 

 

1.00

%

 

 

10.96

%

 

11/25/28

 

 

7,573

 

 

 

7,573

 

 

 

7,573

 

High Street Buyer, Inc.

 

Insurance

 

S+575

 

 

0.75

%

 

 

11.25

%

 

4/16/28

 

 

7,604

 

 

 

7,604

 

 

 

7,604

 

iCIMS, Inc.(4)

 

Software

 

S+725

 

 

0.75

%

 

 

12.62

%

 

8/18/28

 

 

3,089

 

 

 

3,066

 

 

 

3,089

 

Kaseya, Inc.(4)

 

Software

 

S+600

 

 

0.75

%

 

 

11.38

%

 

6/23/29

 

 

9,058

 

 

 

9,058

 

 

 

9,058

 

Kid Distro Holdings, LLC(4)

 

Software

 

S+550

 

 

1.00

%

 

 

11.00

%

 

10/1/27

 

 

8,939

 

 

 

8,939

 

 

 

8,939

 

Maxor Acquisition, Inc.(4)

 

Health Care Providers & Services

 

S+675

 

 

1.00

%

 

 

12.48

%

 

3/1/29

 

 

6,120

 

 

 

5,940

 

 

 

6,120

 

ONS MSO, LLC(4)

 

Health Care Providers & Services

 

S+625

 

 

1.00

%

 

 

11.62

%

 

7/8/26

 

 

5,922

 

 

 

5,784

 

 

 

5,922

 

Pinnacle Treatment Centers, Inc.(4)

 

Health Care Providers & Services

 

S+650

 

 

1.00

%

 

 

11.95

%

 

1/2/26

 

 

6,951

 

 

 

6,951

 

 

 

6,951

 

Plastics Management, LLC(4)

 

Health Care Providers & Services

 

S+500

 

 

1.00

%

 

 

10.45

%

 

8/18/27

 

 

5,637

 

 

 

5,471

 

 

 

5,637

 

RQM+ Corp.(4)

 

Life Sciences Tools & Services

 

S+575

 

 

1.00

%

 

 

11.36

%

 

8/12/26

 

 

5,955

 

 

 

5,955

 

 

 

5,955

 

RxSense Holdings LLC(4)

 

Diversified Consumer Services

 

S+500

 

 

1.00

%

 

 

10.48

%

 

3/13/26

 

 

8,968

 

 

 

8,968

 

 

 

8,968

 

SunMed Group Holdings, LLC(4)

 

Health Care Equipment & Supplies

 

S+550

 

 

0.75

%

 

 

10.96

%

 

6/16/28

 

 

8,948

 

 

 

8,948

 

 

 

8,948

 

The Townsend Company, LLC(4)

 

Commercial Services & Supplies

 

S+625

 

 

1.00

%

 

 

11.61

%

 

8/15/29

 

 

3,642

 

 

 

3,555

 

 

 

3,642

 

Tilley Distribution, Inc.(4)

 

Trading Companies & Distributors

 

S+600

 

 

1.00

%

 

 

11.50

%

 

12/31/26

 

 

5,850

 

 

 

5,850

 

 

 

5,850

 

Ultimate Baked Goods Midco LLC(4)

 

Packaged Foods & Meats

 

S+625

 

 

1.00

%

 

 

11.71

%

 

8/13/27

 

 

8,954

 

 

 

8,954

 

 

 

8,865

 

United Digestive MSO Parent, LLC(4)

 

Health Care Providers & Services

 

S+675

 

 

1.00

%

 

 

12.25

%

 

3/30/29

 

 

3,411

 

 

 

3,311

 

 

 

3,411

 

Urology Management Holdings, Inc.(4)

 

Health Care Providers & Services

 

S+650

 

 

1.00

%

 

 

11.93

%

 

6/15/26

 

 

3,179

 

 

 

3,102

 

 

 

3,155

 

Vessco Midco Holdings, LLC(4)

 

Water Utilities

 

S+450

 

 

1.00

%

 

 

9.96

%

 

11/2/26

 

 

4,304

 

 

 

4,304

 

 

 

4,304

 

West-NR Parent, Inc.(4)

 

Insurance

 

S+625

 

 

1.00

%

 

 

11.70

%

 

12/27/27

 

 

6,822

 

 

 

6,691

 

 

 

6,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

186,059

 

 

$

187,255

 

 

(1)
Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the SOFR. These instruments are typically subject to a SOFR floor.
(2)
Floating rate debt investments typically bear interest at a rate determined by reference to the SOFR (“S”), and which typically reset monthly, quarterly or semi-annually. For each debt investment, we have provided the current interest rate in effect as of December 31, 2023.
(3)
Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board’s valuation process described elsewhere herein.
(4)
The Company also holds this security on its Consolidated Statements of Assets and Liabilities.

Below is certain summarized financial information for SSLP as of June 30, 2024 and December 31, 2023 and for the three and six months ended June 30, 2024 and June 30, 2023:

 

 

June 30, 2024

 

 

December 31,
2023

 

Selected Balance Sheet Information for SSLP:

 

 

 

 

 

 

Investments at fair value (cost $219,217 and $186,059,
   respectively)

 

$

220,803

 

 

$

187,255

 

Cash and other assets

 

 

16,163

 

 

 

8,613

 

Total assets

 

$

236,966

 

 

$

195,868

 

Debt outstanding ($135,800 and $106,900 face amounts,
   respectively, reported net of unamortized debt issuance
   costs of $1,851 and $1,697, respectively)

 

$

133,949

 

 

$

105,203

 

Distributions payable

 

 

3,365

 

 

 

1,900

 

Interest payable and other credit facility related expenses

 

 

597

 

 

 

551

 

Accrued expenses and other payables

 

 

510

 

 

 

416

 

Total liabilities

 

$

138,421

 

 

$

108,070

 

Members’ equity

 

$

98,545

 

 

$

87,798

 

Total liabilities and members’ equity

 

$

236,966

 

 

$

195,868

 

 

Three months ended

 

 

Six months ended

 

 

June 30, 2024

 

 

June 30, 2023

 

 

June 30, 2024

 

 

June 30, 2023

 

Selected Income Statement Information for SSLP:

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

6,616

 

 

$

1,605

 

 

$

12,585

 

 

$

2,614

 

Service fees*

 

135

 

 

 

38

 

 

 

260

 

 

 

57

 

Interest and other credit facility expenses

 

2,920

 

 

 

1,447

 

 

 

5,638

 

 

 

2,252

 

Other general and administrative expenses

 

46

 

 

 

19

 

 

 

90

 

 

 

57

 

Total expenses

 

3,101

 

 

 

1,504

 

 

 

5,988

 

 

 

2,366

 

Net investment income

$

3,515

 

 

$

101

 

 

$

6,597

 

 

$

248

 

Realized gain on investments

 

—

 

 

 

—

 

 

 

—

 

 

 

30

 

Net change in unrealized gain (loss) on investments

 

(118

)

 

 

321

 

 

 

391

 

 

 

361

 

Net realized and unrealized gain (loss) on investments

$

(118

)

 

$

321

 

 

$

391

 

 

$

391

 

Net income

$

3,397

 

 

$

422

 

 

$

6,988

 

 

$

639

 

 

* Service fees are included within the Company’s Consolidated Statements of Operations as other income.