| 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, 2025 and December 31, 2024, borrowings outstanding on the SSLP Facility totaled $112,500 and $96,600, respectively. As of June 30, 2025 and December 31, 2024, the Company and the Investor had contributed combined equity capital in the amount of $95,750 and $95,750, respectively. As of June 30, 2025 and December 31, 2024, the Company and the Investor’s combined remaining commitments to SSLP totaled $4,250 and $4,250, respectively. The Company and the Investor control 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, 2025 and December 31, 2024, SSLP had total assets of $210,953 and $197,461, respectively. For the same periods, SSLP’s portfolio consisted of floating rate senior secured loans to 29 and 32 different borrowers, respectively. For the three and six months ended June 30, 2025, SSLP invested $32,253 and $38,841, respectively, in 7 and 10 portfolio companies, respectively. Investments sold or prepaid totaled $13,854 and $33,772, respectively, for the three and six months ended June 30, 2025. For the three and six months ended June 30, 2024, SSLP invested $11,444 and $41,202, respectively, in 7 and 13 portfolio companies, respectively. Investments prepaid totaled $7,702 and $8,473, respectively for the three and six months ended June 30, 2024. SSLP Portfolio as of June 30, 2025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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+475 |
|
|
0.75 |
% |
|
|
9.03 |
% |
|
11/2029 |
|
$ |
6,852 |
|
|
$ |
6,832 |
|
|
$ |
6,852 |
|
Alkeme Intermediary Holdings, LLC (4) |
|
Insurance |
|
S+525 |
|
|
1.00 |
% |
|
|
9.55 |
% |
|
10/2026 |
|
|
5,955 |
|
|
|
5,863 |
|
|
|
5,955 |
|
All States Ag Parts, LLC (4) |
|
Trading Companies & Distributors |
|
S+650 |
|
|
1.00 |
% |
|
|
11.06 |
% |
|
9/2026 |
|
|
2,081 |
|
|
|
2,081 |
|
|
|
2,081 |
|
BayMark Health Services, Inc. (4) |
|
Health Care Providers & Services |
|
S+500 |
|
|
1.00 |
% |
|
|
9.56 |
% |
|
6/2027 |
|
|
3,971 |
|
|
|
3,971 |
|
|
|
3,892 |
|
CC SAG Holdings Corp. (4) |
|
Diversified Consumer Services |
|
S+525 |
|
|
0.75 |
% |
|
|
9.58 |
% |
|
6/2028 |
|
|
9,974 |
|
|
|
9,974 |
|
|
|
9,974 |
|
Crewline Buyer, Inc. |
|
IT Services |
|
S+675 |
|
|
1.00 |
% |
|
|
11.08 |
% |
|
11/2030 |
|
|
5,084 |
|
|
|
4,973 |
|
|
|
5,084 |
|
CVAUSA Management, LLC (4) |
|
Health Care Providers & Services |
|
S+525 |
|
|
1.00 |
% |
|
|
9.56 |
% |
|
5/2029 |
|
|
9,975 |
|
|
|
9,753 |
|
|
|
9,975 |
|
Erie Construction Mid-west, LLC |
|
Building Products |
|
S+475 |
|
|
1.00 |
% |
|
|
9.18 |
% |
|
7/2027 |
|
|
7,771 |
|
|
|
7,771 |
|
|
|
7,771 |
|
Exactcare Parent, Inc. |
|
Health Care Providers & Services |
|
S+550 |
|
|
1.00 |
% |
|
|
9.76 |
% |
|
11/2029 |
|
|
3,187 |
|
|
|
3,116 |
|
|
|
3,187 |
|
Eyesouth Eye Care Holdco LLC (4) |
|
Health Care Providers & Services |
|
S+550 |
|
|
1.00 |
% |
|
|
9.92 |
% |
|
10/2029 |
|
|
9,975 |
|
|
|
9,929 |
|
|
|
9,975 |
|
Fertility (ITC) Investment Holdco, LLC (4) |
|
Health Care Providers & Services |
|
S+650 |
|
|
1.00 |
% |
|
|
10.74 |
% |
|
1/2029 |
|
|
5,865 |
|
|
|
5,742 |
|
|
|
5,865 |
|
Foundation Consumer Brands, LLC |
|
Personal Care Products |
|
S+500 |
|
|
1.00 |
% |
|
|
9.36 |
% |
|
2/2029 |
|
|
7,894 |
|
|
|
7,894 |
|
|
|
7,894 |
|
High Street Buyer, Inc. |
|
Insurance |
|
S+525 |
|
|
0.75 |
% |
|
|
9.55 |
% |
|
4/2028 |
|
|
7,488 |
|
|
|
7,488 |
|
|
|
7,488 |
|
iCIMS, Inc.(4) |
|
Software |
|
S+575 |
|
|
0.75 |
% |
|
|
10.03 |
% |
|
8/2028 |
|
|
10,000 |
|
|
|
9,965 |
|
|
|
10,000 |
|
Legacy Service Partners, LLC |
|
Diversified Consumer Services |
|
S+525 |
|
|
1.00 |
% |
|
|
9.70 |
% |
|
1/2029 |
|
|
2,782 |
|
|
|
2,728 |
|
|
|
2,782 |
|
Maxor Acquisition, Inc.(4) |
|
Health Care Providers & Services |
|
S+600 |
|
|
1.00 |
% |
|
|
10.43 |
% |
|
3/2029 |
|
|
7,992 |
|
|
|
7,846 |
|
|
|
7,992 |
|
Medrina, LLC |
|
Health Care Providers & Services |
|
S+600 |
|
|
1.00 |
% |
|
|
10.13 |
% |
|
10/2029 |
|
|
2,772 |
|
|
|
2,715 |
|
|
|
2,772 |
|
ONS MSO, LLC(4) |
|
Health Care Providers & Services |
|
S+625 |
|
|
1.00 |
% |
|
|
10.53 |
% |
|
7/2028 |
|
|
5,819 |
|
|
|
5,702 |
|
|
|
5,819 |
|
Plastic Management, LLC(4) |
|
Health Care Providers & Services |
|
S+500 |
|
|
1.00 |
% |
|
|
9.30 |
% |
|
8/2027 |
|
|
5,551 |
|
|
|
5,445 |
|
|
|
5,551 |
|
RQM+ Corp.(4) |
|
Life Sciences Tools & Services |
|
S+675 |
|
|
1.00 |
% |
|
|
11.31 |
% |
|
8/2029 |
|
|
6,006 |
|
|
|
6,006 |
|
|
|
5,525 |
|
RxSense Holdings LLC |
|
Diversified Consumer Services |
|
S+500 |
|
|
1.00 |
% |
|
|
9.28 |
% |
|
3/2026 |
|
|
8,828 |
|
|
|
8,828 |
|
|
|
8,828 |
|
SunMed Group Holdings, LLC(4) |
|
Health Care Equipment & Supplies |
|
S+550 |
|
|
0.75 |
% |
|
|
9.88 |
% |
|
6/2028 |
|
|
8,811 |
|
|
|
8,811 |
|
|
|
8,811 |
|
The Townsend Company, LLC(4) |
|
Commercial Services & Supplies |
|
S+500 |
|
|
1.00 |
% |
|
|
9.30 |
% |
|
8/2030 |
|
|
12,136 |
|
|
|
11,811 |
|
|
|
12,136 |
|
Tilley Distribution, Inc.(4) |
|
Trading Companies & Distributors |
|
S+600 |
|
|
1.00 |
% |
|
|
10.45 |
% |
|
12/2026 |
|
|
5,578 |
|
|
|
5,578 |
|
|
|
5,466 |
|
United Digestive MSO Parent, LLC(4) |
|
Health Care Providers & Services |
|
S+575 |
|
|
1.00 |
% |
|
|
10.04 |
% |
|
3/2029 |
|
|
3,550 |
|
|
|
3,468 |
|
|
|
3,550 |
|
Urology Management Holdings, Inc.(4) |
|
Health Care Providers & Services |
|
S+550 |
|
|
1.00 |
% |
|
|
9.80 |
% |
|
6/2027 |
|
|
4,091 |
|
|
|
4,029 |
|
|
|
4,091 |
|
UVP Management, LLC(4) |
|
Health Care Providers & Services |
|
S+550 |
|
|
1.00 |
% |
|
|
9.95 |
% |
|
9/2027 |
|
|
3,288 |
|
|
|
3,234 |
|
|
|
3,288 |
|
WCI-BXC Purchaser, LLC |
|
Distributors |
|
S+625 |
|
|
1.00 |
% |
|
|
10.51 |
% |
|
11/2030 |
|
|
2,861 |
|
|
|
2,800 |
|
|
|
2,861 |
|
Western Veterinary Partners LLC(4) |
|
Diversified Consumer Services |
|
S+525 |
|
|
1.00 |
% |
|
|
9.31 |
% |
|
10/2027 |
|
|
8,645 |
|
|
|
8,597 |
|
|
|
8,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
182,950 |
|
|
$ |
184,110 |
|
(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, 2025. (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, 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+475 |
|
|
0.75 |
% |
|
|
9.08 |
% |
|
11/2029 |
|
$ |
6,888 |
|
|
$ |
6,865 |
|
|
$ |
6,888 |
|
Aegis Toxicology Sciences Corporation (4) |
|
Health Care Providers & Services |
|
S+550 |
|
|
1.00 |
% |
|
|
10.28 |
% |
|
5/2025 |
|
|
2,895 |
|
|
|
2,895 |
|
|
|
2,895 |
|
Alkeme Intermediary Holdings, LLC (4) |
|
Insurance |
|
S+575 |
|
|
1.00 |
% |
|
|
10.08 |
% |
|
10/2026 |
|
|
5,984 |
|
|
|
5,861 |
|
|
|
5,984 |
|
All States Ag Parts, LLC (4) |
|
Trading Companies & Distributors |
|
S+600 |
|
|
1.00 |
% |
|
|
10.59 |
% |
|
9/2026 |
|
|
2,111 |
|
|
|
2,111 |
|
|
|
2,111 |
|
BayMark Health Services, Inc. (4) |
|
Health Care Providers & Services |
|
S+500 |
|
|
1.00 |
% |
|
|
9.59 |
% |
|
6/2027 |
|
|
3,992 |
|
|
|
3,992 |
|
|
|
3,992 |
|
CC SAG Holdings Corp. (4) |
|
Diversified Consumer Services |
|
S+525 |
|
|
0.75 |
% |
|
|
9.58 |
% |
|
6/2028 |
|
|
8,877 |
|
|
|
8,877 |
|
|
|
8,877 |
|
Crewline Buyer, Inc. |
|
IT Services |
|
S+675 |
|
|
1.00 |
% |
|
|
11.11 |
% |
|
11/2030 |
|
|
5,084 |
|
|
|
4,966 |
|
|
|
5,084 |
|
CVAUSA Management, LLC (4) |
|
Health Care Providers & Services |
|
S+650 |
|
|
1.00 |
% |
|
|
10.84 |
% |
|
5/2029 |
|
|
5,357 |
|
|
|
5,220 |
|
|
|
5,357 |
|
Erie Construction Mid-west, LLC |
|
Building Products |
|
S+475 |
|
|
1.00 |
% |
|
|
10.09 |
% |
|
7/2027 |
|
|
8,000 |
|
|
|
8,000 |
|
|
|
8,000 |
|
Exactcare Parent, Inc. |
|
Health Care Providers & Services |
|
S+550 |
|
|
1.00 |
% |
|
|
10.03 |
% |
|
11/2029 |
|
|
3,203 |
|
|
|
3,125 |
|
|
|
3,203 |
|
Eyesouth Eye Care Holdco LLC (4) |
|
Health Care Providers & Services |
|
S+550 |
|
|
1.00 |
% |
|
|
10.15 |
% |
|
10/2029 |
|
|
2,646 |
|
|
|
2,596 |
|
|
|
2,646 |
|
Fertility (ITC) Investment Holdco, LLC (4) |
|
Health Care Providers & Services |
|
S+650 |
|
|
1.00 |
% |
|
|
11.74 |
% |
|
1/2029 |
|
|
5,895 |
|
|
|
5,757 |
|
|
|
5,895 |
|
Foundation Consumer Brands, LLC (4) |
|
Personal Products |
|
S+625 |
|
|
1.00 |
% |
|
|
10.89 |
% |
|
2/2027 |
|
|
8,102 |
|
|
|
8,102 |
|
|
|
8,102 |
|
High Street Buyer, Inc. |
|
Insurance |
|
S+525 |
|
|
0.75 |
% |
|
|
9.58 |
% |
|
4/2028 |
|
|
7,527 |
|
|
|
7,527 |
|
|
|
7,527 |
|
iCIMS, Inc.(4) |
|
Software |
|
S+575 |
|
|
0.75 |
% |
|
|
10.38 |
% |
|
8/2028 |
|
|
3,195 |
|
|
|
3,158 |
|
|
|
3,195 |
|
Kaseya, Inc.(4) |
|
Software |
|
S+550 |
|
|
0.75 |
% |
|
|
10.75 |
% |
|
6/2029 |
|
|
9,127 |
|
|
|
9,127 |
|
|
|
9,127 |
|
Kid Distro Holdings, LLC |
|
Software |
|
S+475 |
|
|
1.00 |
% |
|
|
9.49 |
% |
|
10/2029 |
|
|
8,848 |
|
|
|
8,848 |
|
|
|
8,848 |
|
Legacy Service Partners, LLC |
|
Diversified Consumer Services |
|
S+525 |
|
|
1.00 |
% |
|
|
9.73 |
% |
|
1/2029 |
|
|
2,796 |
|
|
|
2,733 |
|
|
|
2,796 |
|
Maxor Acquisition, Inc.(4) |
|
Health Care Providers & Services |
|
S+600 |
|
|
1.00 |
% |
|
|
10.46 |
% |
|
3/2029 |
|
|
6,058 |
|
|
|
5,906 |
|
|
|
6,058 |
|
Medrina, LLC |
|
Health Care Providers & Services |
|
S+600 |
|
|
1.00 |
% |
|
|
10.44 |
% |
|
10/2029 |
|
|
2,386 |
|
|
|
2,333 |
|
|
|
2,386 |
|
ONS MSO, LLC(4) |
|
Health Care Providers & Services |
|
S+625 |
|
|
1.00 |
% |
|
|
10.84 |
% |
|
7/2026 |
|
|
5,833 |
|
|
|
5,738 |
|
|
|
5,833 |
|
Plastic Management, LLC(4) |
|
Health Care Providers & Services |
|
S+500 |
|
|
1.00 |
% |
|
|
9.43 |
% |
|
8/2027 |
|
|
5,579 |
|
|
|
5,453 |
|
|
|
5,579 |
|
Retina Midco, Inc.(4) |
|
Health Care Providers & Services |
|
S+575 |
|
|
1.00 |
% |
|
|
10.35 |
% |
|
1/2026 |
|
|
9,918 |
|
|
|
9,793 |
|
|
|
10,116 |
|
RQM+ Corp.(4) |
|
Life Sciences Tools & Services |
|
S+675 |
|
|
1.00 |
% |
|
|
11.34 |
% |
|
8/2029 |
|
|
5,895 |
|
|
|
5,895 |
|
|
|
5,659 |
|
RxSense Holdings LLC(4) |
|
Diversified Consumer Services |
|
S+500 |
|
|
1.00 |
% |
|
|
9.69 |
% |
|
3/2026 |
|
|
8,875 |
|
|
|
8,875 |
|
|
|
8,875 |
|
SunMed Group Holdings, LLC(4) |
|
Health Care Equipment & Supplies |
|
S+550 |
|
|
0.75 |
% |
|
|
10.19 |
% |
|
6/2028 |
|
|
8,856 |
|
|
|
8,856 |
|
|
|
8,856 |
|
The Townsend Company, LLC(4) |
|
Commercial Services & Supplies |
|
S+500 |
|
|
1.00 |
% |
|
|
9.36 |
% |
|
8/2030 |
|
|
4,117 |
|
|
|
4,026 |
|
|
|
4,078 |
|
Tilley Distribution, Inc.(4) |
|
Trading Companies & Distributors |
|
S+600 |
|
|
1.00 |
% |
|
|
10.48 |
% |
|
12/2026 |
|
|
5,607 |
|
|
|
5,607 |
|
|
|
5,495 |
|
United Digestive MSO Parent, LLC(4) |
|
Health Care Providers & Services |
|
S+575 |
|
|
1.00 |
% |
|
|
10.08 |
% |
|
3/2029 |
|
|
3,433 |
|
|
|
3,346 |
|
|
|
3,433 |
|
Urology Management Holdings, Inc.(4) |
|
Health Care Providers & Services |
|
S+550 |
|
|
1.00 |
% |
|
|
9.83 |
% |
|
6/2027 |
|
|
4,112 |
|
|
|
4,035 |
|
|
|
4,112 |
|
UVP Management, LLC(4) |
|
Health Care Providers & Services |
|
S+625 |
|
|
1.00 |
% |
|
|
10.73 |
% |
|
9/2025 |
|
|
4,858 |
|
|
|
4,803 |
|
|
|
4,858 |
|
WCI-BXC Purchaser, LLC |
|
Distributors |
|
S+625 |
|
|
1.00 |
% |
|
|
10.78 |
% |
|
11/2030 |
|
|
2,875 |
|
|
|
2,810 |
|
|
|
2,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
177,236 |
|
|
$ |
178,740 |
|
(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, 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. Below is certain summarized financial information for SSLP as of June 30, 2025 and December 31, 2024 and for the three and six months ended June 30, 2025 and June 30, 2024:
|
|
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
December 31,
2024 |
|
Selected Balance Sheet Information for SSLP: |
|
|
|
|
|
|
Investments at fair value (cost $182,950 and $177,236,
respectively) |
|
$ |
184,110 |
|
|
$ |
178,740 |
|
Cash and other assets |
|
|
26,843 |
|
|
|
18,721 |
|
Total assets |
|
$ |
210,953 |
|
|
$ |
197,461 |
|
Debt outstanding ($112,500 and $96,600 face amounts,
respectively, reported net of unamortized debt issuance
costs of $1,319 and $1,572, respectively) |
|
$ |
111,181 |
|
|
$ |
95,028 |
|
Distributions payable |
|
|
1,892 |
|
|
|
3,381 |
|
Interest payable and other credit facility related expenses |
|
|
444 |
|
|
|
472 |
|
Accrued expenses and other payables |
|
|
356 |
|
|
|
398 |
|
Total liabilities |
|
$ |
113,873 |
|
|
$ |
99,279 |
|
Members’ equity |
|
$ |
97,080 |
|
|
$ |
98,182 |
|
Total liabilities and members’ equity |
|
$ |
210,953 |
|
|
$ |
197,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
June 30, 2025 |
|
|
June 30, 2024 |
|
|
June 30, 2025 |
|
|
June 30, 2024 |
|
Selected Income Statement Information for SSLP: |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
4,558 |
|
|
$ |
6,616 |
|
|
$ |
9,027 |
|
|
$ |
12,585 |
|
Service fees* |
|
109 |
|
|
|
135 |
|
|
|
214 |
|
|
|
260 |
|
Interest and other credit facility expenses |
|
2,248 |
|
|
|
2,920 |
|
|
|
4,490 |
|
|
|
5,638 |
|
Other general and administrative expenses |
|
61 |
|
|
|
46 |
|
|
|
132 |
|
|
|
90 |
|
Total expenses |
|
2,418 |
|
|
|
3,101 |
|
|
|
4,836 |
|
|
|
5,988 |
|
Net investment income |
$ |
2,140 |
|
|
$ |
3,515 |
|
|
$ |
4,191 |
|
|
$ |
6,597 |
|
Realized gain on investments |
|
14 |
|
|
|
— |
|
|
|
337 |
|
|
|
— |
|
Net change in unrealized gain (loss) on investments |
|
(59 |
) |
|
|
(118 |
) |
|
|
(344 |
) |
|
|
391 |
|
Net realized and unrealized gain (loss) on investments |
$ |
(45 |
) |
|
$ |
(118 |
) |
|
$ |
(7 |
) |
|
$ |
391 |
|
Net income |
$ |
2,095 |
|
|
$ |
3,397 |
|
|
$ |
4,184 |
|
|
$ |
6,988 |
|
* Service fees are included within the Company’s Consolidated Statements of Operations as other income. |