Portfolio and Investment Activity
During the three months ended March 31, 2020, we invested $35.4 million across 13 portfolio companies. This compares to investing
$31.2 million in 10 portfolio companies for the three months ended March 31, 2019. Investments sold or prepaid during the three months ended March 31, 2020 totaled $73.1 million versus $15.6 million for the three months
ended March 31, 2019.
At March 31, 2020, our portfolio consisted of 45 portfolio companies and was invested 76.9% directly in
senior secured loans and 23.1% in common equity/equity interests/warrants (of which 8.8% is Gemino and 14.2% is NM Holdco, through which the Company indirectly invests in senior secured loans), in each case, measured at fair value versus 49
portfolio companies invested 77.8% directly in senior secured loans and 22.2% in common equity/equity interests/warrants (of which 7.2% is Gemino and 14.6% is NMC) at March 31, 2019.
At March 31, 2020, 98.5% or $389.4 million of our income producing investment
portfolio* was floating rate and 1.5% or $6.1 million was fixed rate, measured at fair value. At March 31, 2019, 95.8% or $432.4 million of our income producing investment
portfolio* was floating rate and 4.2% or $19.1 million was fixed rate, measured at fair value.
Since the initial public offering of
Solar Senior on February 24, 2011 and through March 31, 2020, invested capital totaled over $1.7 billion in over 145 portfolio companies. Over the same period, Solar Senior completed transactions with more than 100 different financial
Gemino Healthcare Finance, LLC
We acquired Gemino (d/b/a Gemino Senior Secured Healthcare Finance) 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. As of March 31, 2020, Geminos management team and Solar Senior own approximately 7% and 93% of the equity in
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 had a maturity date of May 27, 2020. On June 28, 2019, this $125.0 million facility was amended,
extending the maturity date to June 28, 2023.
Gemino currently manages a highly diverse portfolio of directly-originated and
underwritten senior-secured commitments. As of March 31, 2020, the portfolio totaled approximately $208.3 million of commitments with a total net investment in loans of $116.5 million on total assets of $145.5 million. As of
December 31, 2019, the portfolio totaled approximately $203.8 million of commitments with a total net investment in loans of $111.0 million on total assets of $122.1 million. At March 31, 2020, the portfolio consisted
of 37 issuers with an average balance of approximately $3.1 million versus 34 issuers with an average balance of approximately $3.3 million at December 31, 2019. 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 $113.0 million and $89.0 million of borrowings
outstanding at March 31, 2020 and December 31, 2019, respectively. For the three months ended March 31, 2020 and 2019, Gemino had net income of $0.8 million and $0.9 million, respectively, on gross income of
$3.2 million and $3.2 million, respectively. Due to timing and non-cash items,
We have included Gemino Healthcare Finance, LLC and North Mill Capital LLC within our income producing