Solar Senior Capital Acquires Gemino Healthcare Finance - Quick Facts

(RTTNews) - Solar Senior Capital Ltd. (SUNS) said Thursday it has acquired Gemino Healthcare Finance LLC (d/b/a Gemino Senior Secured Healthcare Finance) from affiliates of EDG Partners, D. E. Shaw AQ-SP Series 5-01, L.L.C. and other members of Gemino.

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. Gemino's senior management team has an average of over 15 years of healthcare finance experience and has originated more than $1.3 billion of financing commitments.

Solar Senior said its initial investment in Gemino of about $33 million was funded from Solar Senior's existing credit facility.

Concurrent with the closing of the deal, Gemino entered into a new, four-year $100 million credit facility, which is expandable to $150 million under its accordion feature. Gemino has approximately $83 million outstanding on this credit facility, which is non-recourse to Solar Senior.

Solar Senior expects Gemino to be treated as a pass-through entity for tax purposes and is expected to distribute a substantial portion of its current cash earnings as dividends to Solar Senior on a recurring basis.

Gemino currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments. As of September 30, the portfolio totaled about $162 million of commitments, of which $106 million were funded.