Loan investment is risky, as the end of the last decade showed us. There are some entities that thrive in the space, however, and Solar Senior is one such entity.
In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Solar Senior Capital Ltd. (NASDAQ:SUNS) reported that Silver Jack has picked up 651,373 of common stock as of 2017-01-17.
The acquisition brings the aggregate amount owned by Silver Jack to a total of 651,373 representing a 4.1% stake in the company.
For those not familiar with the company, Solar Senior Capital Ltd. (SUNS) is a management investment company. The Company’s investment objective is to seek to maximize current income consistent with the preservation of capital. It invests in senior loans, including first lien and second lien debt instruments. It also invests in debt of public companies that are thinly traded. It invests in senior loans made to private, leveraged middle-market companies with approximately $20 million to $100 million of earnings before income taxes, depreciation and amortization. Its investment portfolio totals approximately $306.5 million and its net asset value is over $188.3 million. It invests in various industries, such as healthcare facilities, healthcare services, automobiles, healthcare technology, hotels, restaurants and leisure, building products, industrial conglomerates and chemicals. Its portfolio consists of debt and equity investments in over 45 portfolio companies. SUNS is managed by Solar Capital Partners, LLC.
A glance at Solar Senior Capital Ltd. (NASDAQ:SUNS)’s key stats reveals a current market capitalization of 269.06 million based on 16.03 million shares outstanding and a price at last close of $16.82 per share.
Looking at insider activity, there are a few transactions worth noting.
Specifically, on 2016-05-11, Hochberg picked up 12,500 at a purchase price of $15.49. This brings their total holding to 20,000 as of the date of the filing.
On the sell side, the most recent transaction saw Rs unload 7,602 shares at a sale price of $14.88. This brings their total holding to 123,722.
It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Solar Senior Capital Ltd. (NASDAQ:SUNS) as things move forward to see if its progress aligns with these transactions.
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