SLRC - SLR Investment says it doesn't see significant impacts from banking crisis

2023-03-20 16:21:23 ET

SLR Investment ( NASDAQ: SLRC ) said Monday that it does not expect the fallout from collapsed lenders Silicon Valley Bank ( SIVB ) and Signature Bank ( SBNY ) to have significant impacts to its financial performance, portfolio credit quality, or liquidity position.

SLRC drifted higher by 2% in after-hours trading.

The New York-based business development company does not have material direct financial and operational exposure to SVB or Signature, Co-CEOs Michael Gross and Bruce Spohler wrote in a letter to shareholders.

While the company has not had any lending ties to SVB, it did have around $13M of unfunded exposure to Signature at Dec. 31, 2022, representing less than 1.0% of its $1.5B of total credit facilities and unsecured debt outstanding.

One of SLR's ( SLRC ) life science portfolio companies, representing less than 0.2% of the fair value of its total portfolio, holds a significant chunk of their cash at SVB. But given the FDIC's commitment to guarantee deposits, SLR said there is no material risk from the SVB closure to this portfolio company.

As of end-2022, SLRC had more than $650M in available capital.

In February, SLR Investment posted strong Q4 results on higher investment income and origination volume .

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