SLR Investment Corp. Announces Acquisition of Factoring Business
Rhea-AI Summary
SLR Investment Corp. (NASDAQ: SLRC) announced that its wholly-owned portfolio company, SLR Business Credit (SLR-BC), acquired an asset-based factoring portfolio and operations from Webster Bank's Commercial Services Division on September 27, 2024. The acquisition includes a team of professionals and a seasoned portfolio of approximately $115 million, diversified with loans to long-standing customers.
This marks SLR-BC's fourth acquisition under SLRC's ownership, expanding its portfolio and product offering. The acquisition aligns with SLRC's strategy to capitalize on the shifting commercial bank landscape and expand its specialty finance platform. SLR-BC specializes in making senior secured asset-based loans and factoring to small and medium-sized companies with borrowing needs of $100,000 up to $100 million.
Positive
- Acquisition of $115 million asset-based factoring portfolio from Webster Bank
- Expansion of SLRC's specialty finance platform and capabilities
- Increased exposure to first lien senior secured collateralized assets
- Addition of experienced team of professionals
- Diversification of loan portfolio with long-standing customers
Negative
- None.
News Market Reaction
On the day this news was published, SLRC gained 1.01%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Increases SLRC’s Specialty Finance Portfolio and Capabilities
NEW YORK, Sept. 30, 2024 (GLOBE NEWSWIRE) -- SLR Investment Corp. (NASDAQ: SLRC) (the “Company” or “SLRC”) today announced that on September 27, its wholly-owned portfolio company, SLR Business Credit (“SLR-BC”) acquired an asset-based factoring portfolio and operations from Webster Bank, N.A.’s Commercial Services Division (“Webster”) in an asset purchase that includes a team of professionals and a seasoned portfolio. The factoring business specializes in providing financing solutions to middle-market companies. SLR-BC is a commercial finance company that specializes in making senior secured asset-based loans and factoring to small and medium-sized companies with borrowing needs of
The approximately
The addition of the asset-based factoring business, along with its team, further enhances SLRC's diversified specialty finance platform. The Company has a proven history of underwriting and integrating strong lending platforms that are seeking long-term, stable capital and synergies with a new strategic partner.
“The addition of this business marks our fourth acquisition under the ownership of SLRC. We are pleased with the integration and performance of our prior acquisitions and are excited to expand our portfolio and product offering with this attractive factoring platform,” said Jeff Goldrich, CEO of SLR-BC. “The Webster business has a proven track record of originating and managing factoring assets.”
“This acquisition furthers SLRC’s strategy of capitalizing on the shifting commercial bank landscape to expand its specialty finance platform,” said Mitch Soiefer, Partner and Head of Lender Finance at SLR Capital Partners, LLC. “As commercial banks continue to retreat from certain niche markets, our pipeline of attractive investment opportunities has grown. Our expertise, coupled with our stable, long-term capital base, makes us an attractive partner for commercial-bank owned business lines.”
Hovde Group served as exclusive financial advisor to Webster in connection with the transaction.
About SLR Investment Corp.
SLR Investment Corp. is a closed-end investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. A specialty finance company with expertise in several niche markets, the Company primarily invests in leveraged, U.S. upper middle market companies in the form of cash flow, asset-based, and life sciences senior secured loans. SLRC is externally managed by SLR Capital Partners, LLC, an independent investment adviser. For more information, please visit slrinvestmentcorp.com.
About SLR Business Credit
SLR Business Credit is a leading asset-based lending commercial finance company that specializes in making senior secured asset-based loans and factoring to small and medium-sized companies with borrowing needs of
Forward-Looking Statements
Some of the statements in this press release may constitute forward-looking statements because they may relate to future events, future performance or financial condition, which involve risks and uncertainties. Words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. Any forward-looking statements included in this press release are based on information available to SLRC on the date of this press release, and SLRC assumes no obligation to update any such forward-looking statements. Although SLRC undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that it may make directly to you or through reports that SLRC in the future may file with the Securities and Exchange Commission, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Contact
Mitch Soiefer
Head of Lender Finance
msoiefer@slrcp.com | (212) 993-1681
Investor Relations
slrinvestorrelations@slrcp.com | (646) 308-8770
FAQ
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