At September 30, 2017, 96.8% or $356.1 million of our income producing investment
portfolio* was floating rate and 3.2% or $11.8 million was fixed rate, measured at fair value. At September 30, 2016, 96.3% or $315.6 million of our income producing investment
portfolio* was floating rate and 3.7% or $12.2 million was fixed rate, measured at fair value.
Since the initial public offering of
Solar Senior on February 24, 2011 and through September 30, 2017, invested capital totaled approximately $1.2 billion in more than 120 portfolio companies. Over the same period, Solar Senior completed transactions with more than 75
different financial sponsors.
Gemino Healthcare Finance, LLC
We acquired Gemino Healthcare Finance, LLC (d/b/a Gemino Senior Secured Healthcare Finance) (Gemino) on September 30, 2013.
Gemino is a commercial finance company that originates, underwrites, and manages primarily secured, asset-based loans for small and mid-sized companies operating in the healthcare industry. Our initial
investment in Gemino was $32.8 million. The management team of Gemino co-invested in the transaction and continues to lead Gemino.
Concurrent with the closing of the transaction, Gemino entered into a new, four-year, non-recourse,
$100.0 million credit facility with non-affiliates, which was expandable to $150.0 million under its accordion feature. Effective March 31, 2014, the credit facility was expanded to
$105.0 million and again on June 27, 2014 to $110.0 million. On May 27, 2016, Gemino entered into a new $125.0 million credit facility which replaced the previously existing facility. The new facility has similar terms as
compared to the previous facility and includes an accordion feature increase to $200.0 million and has a maturity date of May 27, 2020.
On December 31, 2013, we contributed our 32,839 units in Gemino to Gemino Senior Secured Healthcare LLC (Gemino Senior Secured
Healthcare). In exchange for this contribution, we received 19,839 units of equity interests and $13.0 million in floating rate secured notes of Gemino Senior Secured Healthcare bearing interest at LIBOR plus 7.50%, maturing on
December 31, 2018. However, our financial statements, including our schedule of investments, reflected our investments in Gemino Senior Secured Healthcare on a consolidated basis. On October 28, 2016, Gemino Senior Secured Healthcare was
dissolved. As of September 30, 2017, Geminos management team and Solar Senior own approximately 7% and 93% of the equity in Gemino, respectively.
Gemino currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments. As of
September 30, 2017, the portfolio totaled approximately $190.2 million of commitments, of which $106.5 million were funded, on total assets of $112.1 million. As of December 31, 2016, the portfolio totaled approximately
$186.4 million of commitments, of which $114.4 million were funded, on total assets of $118.5 million. At September 30, 2017, the portfolio consisted of 32 issuers with an average balance of approximately $3.3 million versus
35 issuers with an average balance of approximately $3.3 million at December 31, 2016. All of the commitments in Geminos portfolio are floating-rate, senior-secured, cash-pay loans.
Geminos credit facility, which is non-recourse to us, had approximately $77.0 million and $83.0 million of borrowings outstanding at September 30, 2017 and December 31, 2016,
respectively. For the three months ended September 30, 2017 and 2016, Gemino had net income of $1.1 million and $1.0 million, respectively, on gross income of $3.1 million and $3.2 million, respectively. For the nine months
ended September 30, 2017 and 2016, Gemino had net income of $2.6 million and $3.4 million, respectively, on gross income of $8.7 million and $10.3 million, respectively. Due to timing and
non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in Geminos funded commitments, the timing of
originations, and the repayments of financings, the Company cannot guarantee that Gemino will be able to maintain consistent dividend payments to us.
||We have included First Lien Loan Program LLC and Gemino Healthcare Finance, LLC as 100% floating rate within our income producing investment portfolio.