Solar Capital calls $75 million 6.75% notes due 2042 via new issue

By Susanna Moon

Chicago, Nov. 15 – Solar Capital Ltd. said it has issued a redemption notice for its $75 million of remaining 6.75% senior notes due 2042.

The notes will be redeemed on Dec. 18 at par of $25 plus accrued interest to but excluding the redemption date, according to an 8-K filing with the Securities and Exchange Commission.

The redemption will be funded using proceeds of a new issue of $75 million of 4.5% notes due 2023, according to a company press release.

“The refinancing of the $100 million 6.75% senior unsecured notes is a continuation of our focus on reducing operating expenses, including our cost of capital,” Michael Gross, chairman and chief executive officer of Solar, said in the company press release.

“The lower interest expense, coupled with our reduction in management fees and differentiated business lines, positions the company well for a strong 2018. As a result, we are confident in our ability to grow the company’s net investment income.”

The company said on Oct. 24 that it planned to redeem $25 million of its $100 million of 6.75% notes due 2042 at par of $25 plus accrued interest from Nov. 15 to but excluding the redemption date of Nov. 24.

Solar Capital is a closed-end, externally managed, non-diversified management investment company.

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