NEW YORK - SLR Investment Corp (NASDAQ: SLRC), a business development company, has announced the recent acquisition of an asset-based factoring portfolio from Webster Bank, N.A.’s Commercial Services Division. The transaction, which took place on Monday, includes a team of professionals and a seasoned portfolio valued at approximately $115 million.
The acquired portfolio diversifies SLR Business Credit's (SLR-BC) exposure to first lien senior secured collateralized assets and is consistent with the company's strategic expansion of its specialty finance platform. This marks the fourth acquisition under SLRC’s ownership and aims to strengthen its position in financing solutions for middle-market companies.
Jeff Goldrich, CEO of SLR-BC, expressed satisfaction with the integration and performance of previous acquisitions and anticipates the same for the new factoring platform. Mitch Soiefer, Partner and Head of Lender Finance at SLR Capital Partners, LLC, noted the opportunity presented by the retreat of commercial banks from niche markets, enhancing SLRC’s investment opportunities.
SLR Investment Corp specializes in senior secured loans and invests in leveraged, upper middle market U.S. companies. SLR Business Credit, a wholly-owned portfolio company of SLRC, provides senior secured asset-based loans and factoring to small and medium-sized businesses.
The Hovde Group acted as the exclusive financial advisor to Webster for this transaction. Details of the terms were not disclosed.
This acquisition is part of SLRC's broader strategy to capitalize on shifts in the commercial banking landscape and expand its reach in the specialty finance sector. The company's stable, long-term capital base and expertise in niche markets are positioned as attractive qualities for potential partners and business lines.
The information in this article is based on a press release statement from SLR Investment Corp.
In other recent news, the Biden administration has raised the tariff-free quota on imported solar cells to 12.5 gigawatts, a significant increase from the previous limit of 5 gigawatts. This decision is part of an effort to support domestic solar panel manufacturers and advance clean energy initiatives. Meanwhile, SLR Investment Corp shows steady growth in the second quarter of 2024, with a reported increase in net investment income per share to $0.45 and a rise in net asset value per share to $18.20. The company's portfolio, predominantly comprised of first lien senior secured loans, demonstrates robust credit quality and a focus on recession-resilient industries. SLR Investment Corp has declared a quarterly distribution of $0.41 per share for Q3 2024. These developments are part of the most recent news for both the clean energy sector and SLR Investment Corp.
InvestingPro Insights
SLR Investment Corp's recent acquisition of Webster Bank's asset-based factoring portfolio aligns well with its financial profile and strategic direction. According to InvestingPro data, SLRC has a market capitalization of $812.86 million and has demonstrated solid revenue growth, with an 11.77% increase in the last twelve months as of Q2 2024. This growth trajectory supports the company's expansion strategy in the specialty finance sector.
An InvestingPro Tip highlights that SLRC "pays a significant dividend to shareholders," which is corroborated by the impressive dividend yield of 11.01%. This high yield could be particularly attractive to income-focused investors looking at SLRC's recent strategic moves. Additionally, the company "has maintained dividend payments for 15 consecutive years," underscoring its commitment to shareholder returns even as it pursues growth through acquisitions.
The company's P/E ratio of 8.01 suggests that the stock may be undervalued relative to its earnings, which could indicate potential upside for investors as SLRC integrates its new acquisitions and potentially realizes synergies.
For readers interested in a deeper dive into SLRC's financial health and prospects, InvestingPro offers additional tips and insights. There are 3 more InvestingPro Tips available for SLRC, providing a more comprehensive analysis for those considering this stock in light of its recent strategic moves.
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