Net Change in Unrealized Gain (Loss)
For the fiscal years ended December 31, 2020 and 2019, the net change in unrealized gain (loss) on the Companys assets and
liabilities totaled ($6.7) million and $5.1 million, respectively. Net unrealized loss for the fiscal year ended December 31, 2020 is primarily due to depreciation on our investments in North Mill Holdco LLC, Gemino Healthcare Finance,
LLC, Composite Technology Acquisition Corp., SHO Holdings I Corporation and DISA Holdings Acquisition Subsidiary Corp., among others, partially offset by appreciation on our investments in Aegis Toxicology Sciences Corporation, Confie Seguros
Holding II Co. and Galway Partners Holdings, LLC, among others. The year over year net change in unrealized loss for the fiscal year ended December 31, 2020 is impacted by uncertainty due to the COVID-19
pandemic and its effect on market yields and fundamental portfolio company performance. Net unrealized gain for the fiscal year ended December 31, 2019 was primarily due to appreciation on our investments in Gemino Healthcare Finance, LLC and
TwentyEighty, Inc., among others, as well as the reversal of previously recorded unrealized loss on Trident USA Health Services, partially offset by depreciation in NM Holdco, American Teleconferencing Services, Ltd. and Aegis Toxicology Sciences
Corporation, among others.
Net Increase in Net Assets From Operations
For the fiscal years ended December 31, 2020 and 2019, the Company had a net increase in net assets resulting from operations of
$13.9 million and $22.9 million, respectively. For the fiscal years ended December 31, 2020 and 2019, earnings per average share were $0.87 and $1.43, respectively.
LIQUIDITY AND CAPITAL RESOURCES
Companys liquidity and capital resources are generally available through its revolving credit facilities, unsecured notes and through periodic follow-on equity offerings, as well as from cash flows from
operations, investment sales and pre-payments of investments. At December 31, 2020, the Company had $90.4 million in borrowings outstanding on its credit facilities and $294.6 million of unused
capacity, subject to borrowing base limits.
On March 31, 2020, the Company closed a private offering of $85,000 of senior unsecured
notes due 2025 (the 2025 Unsecured Notes) with a fixed interest rate of 3.90% and a maturity date of March 31, 2025. Interest on the 2025 Unsecured Notes is due semi-annually on March 31 and September 30. The 2025 Unsecured
Notes were issued in a private placement only to qualified institutional buyers.
On May 31, 2019, the Company as transferor and FLLP
2015-1, LLC, a wholly-owned subsidiary of the Company, as borrower entered into amendment number five to the $75 million credit facility with Wells Fargo Bank, NA acting as administrative agent (the
FLLP Facility). The Company acts as servicer under the FLLP Facility. The FLLP Facility is scheduled to mature on May 31, 2024. The FLLP Facility generally bears interest at a rate of LIBOR plus a range of 2.15-2.25%.
On June 1, 2018, the $200 million senior secured revolving credit facility with
our wholly-owned subsidiary SUNS SPV LLC as borrower and Citibank, N.A. acting as administrative agent (the Credit Facility) was refinanced by way of amendment, allowing for greater investment flexibility and the extension of the
maturity date, among other changes. On July 13, 2018, commitments to the Credit Facility, as amended, were increased from $200 million to $225 million by utilizing the accordion feature.
In September 2016, the Company closed a follow-on public equity offering of 4.5 million shares of
common stock at $16.76 per share raising approximately $75.0 million in net proceeds. In the future, the Company may raise additional equity or debt capital, among other considerations. The primary uses of funds will be investments in portfolio
companies, reductions in debt outstanding and other general corporate purposes. The issuance of debt or equity securities will depend on future market conditions, funding needs and other factors and there can be no assurance that any such issuance
will occur or be successful.