10-Q

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

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Table of Contents

10-Q 1 d252997d10q.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarter Ended September 30, 2021

☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number: 814-00849

SLR SENIOR INVESTMENT CORP.

(Exact name of registrant as specified in its charter)


Maryland		27-4288022
(State of Incorporation)		(I.R.S. Employer Identification No.)
500 Park Avenue New York, N.Y.		10022
(Address of principal executive offices)		(Zip Code)

(212) 993-1670

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	SUNS	The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant’s Common Stock, $.01 par value, outstanding as of October 29, 2021 was 16,049,034.

SLR SENIOR INVESTMENT CORP.

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2021

TABLE OF CONTENTS


		PAGE
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Assets and Liabilities as of September 30, 2021 (unaudited) and December 31, 2020		3
	Consolidated Statements of Operations for the three and nine months ended September 30, 2021 (unaudited) and the three and nine months ended September 30, 2020 (unaudited)		4
	Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2021 (unaudited) and the three and nine months ended September 30, 2020 (unaudited)		5
	Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 (unaudited) and the nine months ended September 30, 2020 (unaudited)		6
	Consolidated Schedule of Investments as of September 30, 2021 (unaudited)		7
	Consolidated Schedule of Investments as of December 31, 2020		10
	Notes to Consolidated Financial Statements (unaudited)		13
	Report of Independent Registered Public Accounting Firm		28
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		43
Item 4.	Controls and Procedures		43
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		44
Item 1A.	Risk Factors		44
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		46
Item 3.	Defaults Upon Senior Securities		46
Item 4.	Mine Safety Disclosures		46
Item 5.	Other Information		46
Item 6.	Exhibits		47
	Signatures		48

PART I. FINANCIAL INFORMATION

In this Quarterly Report, “SLR Senior”, “Company”, “we”, “us”, and “our” refer to SLR Senior Investment Corp. unless the context states otherwise.

Item 1.

Financial Statements

SLR SENIOR INVESTMENT CORP.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except share amounts)


	September 30, 2021 (unaudited)			December 31, 2020

Assets
Investments at fair value:
Companies less than 5% owned (cost: $279,708 and $251,163, respectively)	$	275,668		$	246,963
Companies more than 25% owned (cost: $117,439 and $98,439, respectively)		113,367			93,867
Cash		19,991			3,851
Cash equivalents (cost: $199,997 and $299,998, respectively)		199,997			299,998
Interest receivable		1,483			1,373
Dividends receivable		1,993			1,753
Receivable for investments sold		31			—
Prepaid expenses and other assets		318			192

Total assets	$	612,848		$	647,997

Liabilities
Debt ($157,700 and $90,403 face amounts, respectively, reported net of unamortized debt issuance costs of $1,641 and $1,910, respectively. See note 7)	$	156,059		$	88,493
Payable for investments and cash equivalents purchased		201,591			299,998
Distributions payable		—			1,605
Management fee payable (see note 3)		1,014			—
Interest payable (see note 7)		263			1,312
Administrative services payable (see note 3)		799			646
Other liabilities and accrued expenses		713			539

Total liabilities	$	360,439		$	392,593

Commitments and contingencies (see note 10)
Net Assets
Common stock, par value $0.01 per share, 200,000,000 and 200,000,000 common shares authorized, respectively, and 16,049,034 and 16,049,034 issued and outstanding, respectively	$	160		$	160
Paid-in capital in excess of par		274,205			274,205
Accumulated distributable net loss		(21,956	)		(18,961	)

Total net assets	$	252,409		$	255,404

Net Asset Value Per Share	$	15.73		$	15.91

See notes to consolidated financial statements.

SLR SENIOR INVESTMENT CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except share amounts)


	Three months ended						Nine months ended
	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020

INVESTMENT INCOME:
Interest:
Companies less than 5% owned	$	4,997		$	5,428		$	14,845		$	17,701
Dividends:
Companies more than 25% owned		2,365			2,125			6,615			6,375
Other income:
Companies less than 5% owned		25			315			76			425

Total investment income		7,387			7,868			21,536			24,501

EXPENSES:
Management fees (see note 3)	$	1,014		$	1,036		$	2,869		$	3,180
Performance-based incentive fees (see note 3)		—			—			—			95
Interest and other credit facility expenses (see note 7)		1,838			1,927			5,316			6,070
Administrative services expense (see note 3)		448			370			1,328			1,104
Other general and administrative expenses		378			442			1,184			1,186

Total expenses		3,678			3,775			10,697			11,635

Management fees waived (see note 3)		—			(722	)		—			(2,606	)
Performance-based incentive fees waived (see note 3)		—			—			—			(95	)

Net expenses		3,678			3,053			10,697			8,934

Net investment income	$	3,709		$	4,815		$	10,839		$	15,567

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS:
Net realized gain (loss) on investments and cash equivalents (companies less than 5% owned)	$	(10	)	$	37		$	(50	)	$	144

Net change in unrealized gain (loss) on investments and cash equivalents:
Companies less than 5% owned		(1,747	)		3,794			160			(3,910	)
Companies more than 25% owned		500			—			500			(4,733	)

Net change in unrealized gain (loss) on Investments and cash equivalents		(1,247	)		3,794			660			(8,643	)

Net realized and unrealized gain (loss) on investments and cash equivalents		(1,257	)		3,831			610			(8,499	)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	2,452		$	8,646		$	11,449		$	7,068

EARNINGS PER SHARE (see note 5)	$	0.15		$	0.54		$	0.71		$	0.44

See notes to consolidated financial statements.

SLR SENIOR INVESTMENT CORP.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)

(in thousands, except share amounts)


	Three months ended						Nine months ended
	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020

Increase (Decrease) in net assets resulting from operations:
Net investment income	$	3,709		$	4,815		$	10,839		$	15,567
Net realized gain (loss)		(10	)		37			(50	)		144
Net change in unrealized gain (loss)		(1,247	)		3,794			660			(8,643	)

Net increase in net assets resulting from operations		2,452			8,646			11,449			7,068

Distributions to stockholders:
From net investment income		(4,814	)		(4,816	)		(14,444	)		(15,568	)

Capital transactions (see note 12):
Reinvestment of distributions		—			—			—			48

Net increase in net assets resulting from capital transactions		—			—			—			48

Total increase (decrease) in net assets		(2,362	)		3,830			(2,995	)		(8,452	)
Net assets at beginning of period		254,771			249,532			255,404			261,814

Net assets at end of period	$	252,409		$	253,362		$	252,409		$	253,362

Capital share activity (see note 12):
Common stock issued from reinvestment of distributions		—			—			—			2,820

Net increase from capital share activity		—			—			—			2,820

See notes to consolidated financial statements.

SLR SENIOR INVESTMENT CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(in thousands)


	Nine months ended
	September 30, 2021			September 30, 2020

Cash Flows from Operating Activities:
Net increase in net assets resulting from operations	$	11,449		$	7,068
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Net realized (gain) loss on investments and cash equivalents		50			(144	)
Net change in unrealized (gain) loss on investments		(660	)		8,643
(Increase) decrease in operating assets:
Purchase of investments		(143,384	)		(51,540	)
Proceeds from disposition of investments		96,724			114,980
Net accretion of discount on investments		(738	)		(833	)
Capitalization of payment-in-kind income		(197	)		(321	)
Receivable for investments sold		(31	)		6,631
Interest receivable		(110	)		614
Dividends receivable		(240	)		140
Prepaid expenses and other assets		(126	)		(5	)
Increase (decrease) in operating liabilities:
Payable for investments and cash equivalents purchased		(98,407	)		68,217
Management fee payable		1,014			(112	)
Administrative services expense payable		153			(260	)
Interest payable		(1,049	)		(648	)
Other liabilities and accrued expenses		174			(186	)

Net Cash Provided by (Used in) Operating Activities		(135,378	)		152,244

Cash Flows from Financing Activities:
Cash distributions paid		(16,049	)		(15,800	)
Deferred financing costs		709			527
Proceeds from issuance of unsecured debt		—			84,270
Proceeds from secured borrowings		151,060			69,200
Repayments of secured borrowings		(84,203	)		(226,100	)

Net Cash Provided by (Used in) Financing Activities		51,517			(87,903	)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(83,861	)		64,341
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		303,849			106,952

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	219,988		$	171,293

Supplemental disclosure of cash flow information:
Cash paid for interest	$	6,365		$	6,718

Non-cash financing activities consist of the reinvestment of dividends of $0 and $48 for the nine months ended September 30, 2021 and September 30, 2020, respectively.

See notes to consolidated financial statements.

SLR SENIOR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited)

September 30, 2021

(in thousands, except share/unit amounts)


Description	Industry	Spread above Index ⁽³⁾			Libor Floor			Interest Rate ⁽¹⁾			Acquisition Date		Maturity Date		Par Amount		Cost		Fair Value

Bank Debt/Senior Secured Loans — 109.1%
Aegis Toxicology Sciences Corporation⁽²⁾⁽⁹⁾	Health Care Providers & Services		L+550			1.00	%		6.50	%		5/7/2018		5/9/2025	$	8,689	$	8,596	$	8,689
Align Financial Holdings, LLC⁽²⁾	Insurance		L+475			1.00	%		5.75	%		8/26/2021		6/30/2026		6,421		6,341		6,421
Alimera Sciences, Inc.⁽²⁾	Pharmaceuticals		L+765			1.78	%		9.43	%		12/31/2019		7/1/2024		3,085		3,144		3,139
All State Ag Parts, LLC⁽²⁾	Trading Companies & Distributors		L+500			1.00	%		6.00	%		9/1/2021		9/1/2026		1,974		1,945		1,944
Alteon Health, LLC (f/k/a Island Medical)⁽²⁾⁽⁹⁾	Health Care Providers & Services		L+650			1.00	%		7.50	%		3/31/2017		9/1/2023		6,926		6,905		6,926
American Teleconferencing Services, Ltd.^(2)*	Communications Equipment		L+650			1.00	%		7.50	%		5/5/2016		9/9/2021		11,313		11,133		7,215
American Teleconferencing Services, Ltd.^(2)*	Communications Equipment		L+650			1.00	%		7.50	%		9/17/2021		12/7/2021		2,346		2,309		2,346
BayMark Health Services, Inc.⁽²⁾	Health Care Providers & Services		L+500			1.00	%		6.00	%		6/29/2021		6/11/2027		5,828		5,772		5,828
CC SAG Holdings Corp. (Spectrum Automotive)⁽²⁾	Diversified Consumer Services		L+575			0.75	%		6.50	%		6/29/2021		6/29/2028		3,706		3,652		3,650
Cerapedics, Inc.⁽²⁾	Health Care Equipment & Supplies		L+695			2.50	%		9.45	%		3/22/2019		3/1/2025		4,121		4,207		4,208
Community Brands ParentCo, LLC (f/k/a Ministry Brands)⁽²⁾⁽⁹⁾	Software		L+400			1.00	%		5.00	%		6/11/2021		12/2/2022		13,919		13,889		13,919
Composite Technology Acquisition Corp. (ClockSpring) ⁽²⁾⁽⁹⁾	Building Products		L+500			1.00	%		6.00	%		2/1/2019		2/1/2025		10,750		10,654		10,535
DISA Holdings Acquisition Subsidiary Corp.⁽²⁾	Professional Services		L+425			1.00	%		5.25	%		6/14/2018		6/30/2022		9,254		9,241		9,254
Drilling Info Holdings, Inc.⁽²⁾	IT Services		L+450			—			4.58	%		1/31/2020		7/30/2025		11,335		11,106		11,335
Empower Payments Acquisition, Inc. (RevSpring).⁽²⁾	Professional Services		L+425			—			4.38	%		11/28/2016		10/11/2025		4,863		4,855		4,855
ENS Holdings III Corp. & ES Opco USA LLC (BlueFin)⁽²⁾	Trading Companies & Distributors		L+475			1.00	%		5.75	%		12/31/2019		12/31/2025		6,284		6,191		6,284
Erie Construction Mid-west, LLC⁽²⁾	Building Products		L+475			1.00	%		5.75	%		8/5/2021		7/30/2027		9,212		9,054		9,051
Foundation Consumer Brands, LLC⁽²⁾	Personal Products		L+638			1.00	%		7.38	%		2/12/2021		2/12/2027		11,479		11,216		11,479
Glooko, Inc.⁽²⁾	Health Care Technology		L+790			0.10	%		8.00	%		9/30/2021		10/1/2026		1,563		1,555		1,555
GSM Acquisition Corp.⁽²⁾	Leisure Equipment & Products		L+500			1.00	%		6.00	%		4/20/2021		11/16/2026		9,582		9,490		9,486
Higginbotham Insurance Agency, Inc.⁽²⁾	Insurance		L+550			0.75	%		6.25	%		11/25/2020		11/25/2026		6,030		5,949		6,030
High Street Buyer, Inc.⁽²⁾	Insurance		L+600			0.75	%		6.75	%		4/16/2021		4/16/2028		3,975		3,899		3,896
KORE Wireless Group, Inc.⁽²⁾	Wireless Telecommunication Services		L+550			—			5.63	%		12/21/2018		12/21/2024		11,833		11,691		11,833
Logix Holding Company, LLC⁽²⁾⁽⁹⁾	Communications Equipment		L+575			1.00	%		6.75	%		8/11/2017		12/22/2024		11,048		10,981		10,717
Maurices, Incorporated⁽²⁾	Specialty Retail		L+675			1.00	%		7.75	%		8/27/2021		6/1/2024		2,854		2,798		2,796
NAC Holdings Corporation (Jaguar)	Insurance		L+475			1.00	%		5.75	%		7/30/2021		9/28/2024		369		365		365
National Spine and Pain Centers, LLC ⁽⁹⁾	Health Care Providers & Services		L+450			1.00	%		5.50	%		9/18/2018		6/2/2024		2,513		2,507		2,462
Neuronetics, Inc.⁽²⁾⁽⁴⁾	Health Care Equipment & Supplies		L+765			1.66	%		9.31	%		3/2/2020		2/28/2025		2,400		2,432		2,436
Pinnacle Treatment Centers, Inc.⁽²⁾⁽⁹⁾	Health Care Providers & Services		L+575			1.00	%		6.75	%		1/22/2020		12/31/2022		3,769		3,752		3,769
Plastics Management, LLC⁽²⁾	Health Care Providers & Services		L+500			1.00	%		6.00	%		8/26/2021		8/18/2027		5,715		5,630		5,629
PPT Management Holdings, LLC⁽²⁾ ††	Health Care Providers & Services		L+800	⁽⁸⁾		1.00	%		9.00	%		12/15/2016		12/16/2022		9,051		9,031		8,553
RQM+ Corp.⁽²⁾	Life Sciences Tools & Services		L+575			1.00	%		6.75	%		8/20/2021		8/12/2026		5,482		5,429		5,428
RSC Acquisition, Inc.⁽²⁾	Insurance		L+550			1.00	%		6.50	%		10/5/2020		11/1/2026		2,050		1,994		2,050
Rubius Therapeutics, Inc.⁽²⁾⁽⁴⁾	Pharmaceuticals		L+550			2.10	%		7.60	%		12/21/2018		6/1/2026		6,182		6,289		6,290
RxSense Holdings LLC⁽²⁾	Diversified Consumer Services		L+500			1.00	%		6.00	%		3/17/2020		3/13/2026		8,482		8,354		8,482
scPharmaceuticals, Inc.⁽²⁾	Pharmaceuticals		L+795			2.23	%		10.18	%		9/17/2019		9/17/2023		719		728		728
SHO Holding I Corporation (Shoes for Crews)⁽²⁾	Footwear		L+523			1.00	%		6.23	%		11/20/2015		4/27/2024		5,779		5,762		5,490
Smile Doctors LLC⁽²⁾	Personal Products		L+600			1.00	%		7.00	%		12/17/2020		10/6/2022		10,455		10,283		10,455
SOC Telemed, Inc.⁽²⁾⁽⁴⁾	Health Care Providers & Services		L+747			0.13	%		7.60	%		3/26/2021		4/1/2026		4,455		4,457		4,455
SunMed Group Holdings, LLC⁽²⁾	Health Care Equipment & Supplies		L+575			0.75	%		6.50	%		6/16/2021		6/16/2028		6,222		6,117		6,113
TAUC Management, LLC⁽²⁾	Health Care Providers & Services		L+525			1.00	%		6.25	%		2/12/2021		2/12/2027		6,052		5,969		5,961
Trinity Partners, LLC⁽²⁾	Professional Services		L+500			1.00	%		6.00	%		12/11/2020		2/21/2025		2,034		2,017		2,034
Ultimate Baked Goods Midco LLC (Rise Baking)⁽²⁾	Packaged Foods & Meats		L+625			1.00	%		7.25	%		8/12/2021		8/13/2027		6,157		6,006		6,003
Vessco Midco Holdings, LLC⁽²⁾	Water Utilities		L+450			1.00	%		5.50	%		9/3/2021		11/2/2026		1,025		1,015		1,015
World Insurance Associates, LLC⁽²⁾	Insurance		L+575			1.00	%		6.75	%		10/12/2020		4/1/2026		14,278		13,930		14,278

Total Bank Debt/Senior Secured Loans																	$	278,640	$	275,387

															Shares/Units
Common Equity/Equity Interests/Warrants — 45.0%
Essence Group Holdings Corporation (Lumeris) Warrants†	Health Care Technology											3/22/2017				52,000	$	16	$	64
Senseonics Holdings, Inc.⁽⁴⁾†	Health Care Equipment & Supplies											7/25/2019				62,430		18		212
SLR Business Credit^(4)(5)(7)	Diversified Financial Services											10/20/2017				100		86,000		78,000
SLR Healthcare ABL⁽⁴⁾⁽⁵⁾	Diversified Financial Services											9/30/2013				32,839		31,439		35,367
TwentyEighty Investors, LLC†	Professional Services											1/31/2017				17,214		1,000		5
Venus Concept Ltd. Warrants† (f/k/a Restoration Robotics)	Health Care Equipment & Supplies											5/10/2018				6,078		34		—

Total Common Equity/Equity Interests/Warrants																	$	118,507	$	113,648

Total Investments⁽⁶⁾— 154.1%																	$	397,147	$	389,035
															Par Amount
Cash Equivalents — 79.3%
U.S. Treasury Bill	Government											9/30/2021		11/23/2021	$	200,000	$	199,997	$	199,997

Total Investments & Cash Equivalents—233.4%																	$	597,144	$	589,032
Liabilities in Excess of Other Assets — (133.4%)																				(336,623	)

Net Assets — 100.0%																		$ 252,409

See notes to consolidated financial statements.

SLR SENIOR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

September 30, 2021

(in thousands)

(1)

Floating rate debt investments typically bear interest at a rate determined by reference to either the London Interbank Offered Rate (“LIBOR” or “L”) index rate or the prime index rate (PRIME or “P”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current interest rate in effect as of September 30, 2021.

(2)

Indicates an investment that is wholly or partially held by SLR Senior Investment Corp. (the “Company”, “we”, “us” or “our”) through its wholly-owned financing subsidiary SUNS SPV LLC (the “SUNS SPV”). Such investments are pledged as collateral under the Senior Secured Revolving Credit Facility (the “Credit Facility”) (see Note 7 to the consolidated financial statements) and are not generally available to creditors, if any, of the Company.

(3)	Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR or PRIME rate. These instruments are often subject to a LIBOR or PRIME rate floor.

(4)

Indicates assets that the Company believes may not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940 (“1940 Act”), as amended. If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making follow-on investments in existing portfolio companies or could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act. As of September 30, 2021, on a fair value basis, non-qualifying assets in the portfolio represented 19.6% of the total assets of the Company.

(5)

Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the investment. Transactions during the nine months ended September 30, 2021 in these controlled investments are as follows:


Name of Issuer	Fair Value at December 31, 2020		Gross Additions		Gross Reductions		Realized Gain (Loss)		Change in Unrealized Gain (Loss)		Dividend /Other Income		Fair Value at September 30, 2021

SLR Healthcare ABL	$	35,367	$	—	$	—	$	—	$	—	$	2,595	$	35,367
SLR Business Credit		58,500		19,000		—		—		500		4,020		78,000

	$	93,867	$	19,000	$	—	$	—	$	500	$	6,615	$	113,367

(6)

Aggregate net unrealized appreciation for U.S. federal income tax purposes is $3,887; aggregate gross unrealized appreciation and depreciation for U.S. federal tax purposes is $60,923 and $57,036, respectively, based on a tax cost of $385,148. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. All investments are Level 3 unless otherwise indicated.

(7)	Our equity investment in SLR Business Credit is partially held through ESP SSC Corporation, a taxable consolidated subsidiary.

(8)	Spread is 6.00% Cash / 2.00% PIK.

(9)	Indicates an investment that is wholly or partially held by SLR Senior Investment Corp. through its wholly-owned financing subsidiary FLLP 2015-1 LLC (the “FLLP SPV”).

†	Non-income producing security.

††	Investment contains a payment-in-kind (“PIK”) feature.

*	Investment is on non-accrual status.

See notes to consolidated financial statements.

SLR SENIOR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

September 30, 2021


Industry Classification	Percentage of Total Investments (at fair value) as of September 30, 2021

Diversified Financial Services (includes SLR Healthcare ABL and SLR Business Credit)		29.2	%
Health Care Providers & Services		13.4	%
Insurance		8.5	%
Personal Products		5.6	%
Communications Equipment		5.2	%
Building Products		5.0	%
Professional Services		4.2	%
Software		3.6	%
Health Care Equipment & Supplies		3.3	%
Diversified Consumer Services		3.1	%
Wireless Telecommunication Services		3.1	%
IT Services		2.9	%
Pharmaceuticals		2.6	%
Leisure Equipment & Products		2.4	%
Trading Companies & Distributors		2.1	%
Packaged Foods & Meats		1.6	%
Footwear		1.4	%
Life Sciences Tools & Services		1.4	%
Specialty Retail		0.7	%
Health Care Technology		0.4	%
Water Utilities		0.3	%

Total Investments		100.0	%

See notes to consolidated financial statements.

SLR SENIOR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(in thousands, except share/unit amounts)


Description	Industry	Spread above Index⁽³⁾			Libor Floor			Interest Rate ⁽¹⁾			Acquisition Date		Maturity Date		Par Amount		Cost		Fair Value

Bank Debt/Senior Secured Loans — 96.6%
Aegis Toxicology Sciences Corporation⁽²⁾⁽⁹⁾	Health Care Providers & Services		L+550			1.00	%		6.50	%		5/7/2018		5/9/2025	$	10,752	$	10,618	$	10,537
Alimera Sciences, Inc.⁽²⁾	Pharmaceuticals		L+765			1.78	%		9.43	%		12/31/2019		7/1/2024		3,085		3,118		3,116
Alteon Health, LLC (f/k/a Island Medical)⁽²⁾⁽⁹⁾	Health Care Providers & Services		L+650			1.00	%		7.50	%		3/31/2017		9/1/2023		6,991		6,962		6,851
American Teleconferencing Services, Ltd. (PGI)⁽²⁾	Communications Equipment		L+650			1.00	%		7.50	%		5/5/2016		6/8/2023		13,666		13,439		12,641
AQA Acquisition Holding, Inc.⁽²⁾	Software		L+425			1.00	%		5.25	%		9/7/2018		5/24/2023		5,560		5,529		5,560
Cerapedics, Inc.⁽²⁾	Health Care Equipment & Supplies		L+695			2.50	%		9.45	%		3/22/2019		3/1/2024		3,709		3,759		3,765
Composite Technology Acquisition Corp. (ClockSpring) ⁽²⁾⁽⁹⁾	Building Products		L+475			1.00	%		5.75	%		2/1/2019		2/1/2025		10,823		10,708		10,174
Confie Seguros Holding II Co.⁽²⁾⁽⁹⁾	Insurance		L+475			1.00	%		5.75	%		10/13/2016		4/19/2022		14,173		14,135		13,998
DISA Holdings Acquisition Subsidiary Corp.⁽²⁾	Professional Services		L+425			1.00	%		5.25	%		6/14/2018		6/30/2022		9,664		9,643		9,277
Drilling Info Holdings, Inc.⁽²⁾	IT Services		L+450			—			4.65	%		1/31/2020		7/30/2025		11,452		11,180		11,252
Empower Payments Acquisition, Inc. (RevSpring).⁽²⁾	Professional Services		L+425			—			4.47	%		11/28/2016		10/11/2025		4,900		4,891		4,802
ENS Holdings III Corp. & ES Opco USA LLC (BlueFin)⁽²⁾	Trading Companies & Distributors		L+475			1.00	%		5.75	%		12/31/2019		12/31/2025		6,138		6,032		6,107
Galway Partners Holdings, LLC (f/k/a Edgewood)⁽²⁾⁽⁹⁾	Insurance		L+425			1.00	%		5.25	%		3/28/2018		9/8/2024		16,541		16,505		16,541
GenMark Diagnostics, Inc⁽²⁾⁽⁴⁾	Health Care Providers & Services		L+590			2.51	%		8.41	%		2/1/2019		2/1/2023		7,598		7,808		7,807
Higginbotham Insurance Agency, Inc.⁽²⁾	Insurance		L+575			0.75	%		6.50	%		11/25/2020		11/25/2026		4,927		4,854		4,853
Kindred Biosciences, Inc^(2)(10)	Pharmaceuticals		L+675			2.17	%		8.92	%		9/30/2019		9/30/2024		1,408		1,415		1,415
KORE Wireless Group, Inc.⁽²⁾	Wireless Telecommunication Services		L+550			—			5.75	%		12/21/2018		12/21/2024		11,805		11,634		11,805
Logix Holding Company, LLC⁽²⁾⁽⁹⁾	Communications Equipment		L+575			1.00	%		6.75	%		8/11/2017		12/22/2024		10,463		10,396		10,253
MHE Intermediate Holdings, LLC (TFS-Miner)⁽²⁾⁽⁹⁾	Air Freight & Logistics		L+500			1.00	%		6.00	%		3/8/2017		3/10/2024		5,859		5,827		5,800
Ministry Brands, LLC⁽²⁾⁽⁹⁾	Software		L+400			1.00	%		5.00	%		11/21/2016		12/2/2022		14,029		13,979		13,818
National Spine and Pain Centers, LLC ⁽⁹⁾	Health Care Providers & Services		L+525			1.00	%		6.25	%		9/18/2018		6/2/2024		2,532		2,525		2,469
Neuronetics, Inc.⁽²⁾	Health Care Equipment & Supplies		L+765			1.66	%		9.31	%		3/2/2020		2/28/2025		2,400		2,411		2,411
Pet Holdings ULC & Pet Supermarket, Inc. ⁽⁴⁾⁽⁹⁾	Specialty Retail		L+550			1.00	%		6.50	%		9/18/2018		7/5/2022		4,500		4,479		4,455
Pinnacle Treatment Centers, Inc.⁽⁹⁾	Health Care Providers & Services		L+625			1.00	%		7.25	%		1/22/2020		12/31/2022		3,698		3,671		3,698
PPT Management Holdings, LLC⁽²⁾ ††	Health Care Providers & Services		L+850	⁽⁸⁾		1.00	%		9.50	%		12/15/2016		12/16/2022		8,947		8,916		8,142
RSC Acquisition, Inc.⁽²⁾	Insurance		L+550			1.00	%		6.50	%		10/5/2020		11/1/2026		958		930		929
Rubius Therapeutics, Inc.⁽²⁾⁽⁴⁾	Pharmaceuticals		L+550			—			5.65	%		12/21/2018		12/21/2023		6,182		6,243		6,251
RxSense Holdings LLC⁽²⁾	Diversified Consumer Services		L+500			1.00	%		6.00	%		3/17/2020		3/13/2026		8,296		8,149		8,296
scPharmaceuticals, Inc.⁽²⁾	Pharmaceuticals		L+795			2.23	%		10.18	%		9/17/2019		9/17/2023		719		724		725
Sentry Data Systems, Inc.⁽²⁾	Software		L+675			1.00	%		7.75	%		9/27/2020		10/6/2025		5,144		5,045		5,041
SHO Holding I Corporation (Shoes for Crews)⁽²⁾ ††	Footwear		L+523	⁽¹¹⁾		1.00	%		6.23	%		11/20/2015		4/27/2024		5,792		5,769		5,213
SI-BONE, Inc.⁽²⁾⁽⁴⁾	Health Care Equipment & Supplies		L+940			0.33	%		9.73	%		5/29/2020		6/1/2025		2,742		2,744		2,742
Smile Doctors LLC	Personal Products		L+600			1.00	%		7.00	%		12/17/2020		10/6/2022		1,077		1,056		1,056
Trinity Partners, LLC⁽²⁾	Professional Services		L+525			1.00	%		6.25	%		12/11/2020		2/21/2025		2,049		2,029		2,029
U.S. Acute Care Solutions, LLC⁽²⁾⁽⁹⁾ ††	Health Care Providers & Services		L+600	⁽¹²⁾		1.00	%		7.00	%		12/22/2016		5/15/2021		6,271		6,265		6,271
World Insurance Associates, LLC⁽²⁾	Insurance		L+550			1.00	%		6.50	%		10/12/2020		4/1/2026		10,025		9,731		9,724
Worldwide Facilities, LLC⁽²⁾	Insurance		L+450			—			4.65	%		9/13/2019		9/5/2026		7,088		6,965		7,052

Total Bank Debt/Senior Secured Loans																	$	250,084	$	246,876

															Shares/Units
Common Equity/Equity Interests/Warrants — 36.8%
Essence Group Holdings Corporation (Lumeris) Warrants†	Health Care Technology											3/22/2017				52,000	$	16	$	65
Gemino Healthcare Finance, LLC⁽⁴⁾⁽⁵⁾	Diversified Financial Services											9/30/2013				32,839		31,439		35,367
North Mill Holdco LLC^(4)(5)(7)	Diversified Financial Services											10/20/2017				100		67,000		58,500
Senseonics Holdings, Inc. Warrants†	Health Care Equipment & Supplies											7/25/2019				80,838		18		12
TwentyEighty Investors, LLC†	Professional Services											1/31/2017				17,214		1,011		10
Venus Concept Ltd. Warrants† (f/k/a Restoration Robotics)	Health Care Equipment & Supplies											5/10/2018				6,078		34		—

Total Common Equity/Equity Interests/Warrants																	$	99,518	$	93,954

Total Investments⁽⁶⁾—133.4%																	$	349,602	$	340,830
															Par Amount
Cash Equivalents — 117.5%
U.S. Treasury Bill	Government											12/31/2020		2/23/2021	$	300,000	$	299,998	$	299,998

Total Investments & Cash Equivalents— 250.9%																	$	649,600	$	640,828
Liabilities in Excess of Other Assets — (150.9%)																				(385,424	)

Net Assets — 100.0%																			$	255,404

See notes to consolidated financial statements.

SLR SENIOR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2020

(in thousands)

(1)

(2)

Indicates an investment that is wholly or partially held by SLR Senior Investment Corp. through its wholly-owned financing subsidiary SUNS SPV LLC (the “SUNS SPV”). Such investments are pledged as collateral under the Senior Secured Revolving Credit Facility (the “Credit Facility”) (see Note 7 to the consolidated financial statements) and are not generally available to creditors, if any, of the Company.

(3)	Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR or PRIME rate. These instruments are often subject to a LIBOR or PRIME rate floor.

(4)

Indicates assets that the Company believes may not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940 (“1940 Act”), as amended. If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making follow-on investments in existing portfolio companies or could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act. As of December 31, 2020, on a fair value basis, non-qualifying assets in the portfolio represented 17.8% of the total assets of the Company.

(5)

Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the investment. Transactions during the year ended December 31, 2020 in these controlled investments are as follows:


Name of Issuer	Fair Value at December 31, 2019		Gross Additions		Gross Reductions		Realized Gain (Loss)		Change in Unrealized Gain (Loss)			Dividend /Other Income		Fair Value at December 31, 2020
Gemino Healthcare Finance, LLC	$	36,100	$	—	$	—	$	—	$	(733	)	$	3,460	$	35,367
North Mill Holdco LLC		62,500		—		—		—		(4,000	)		5,040		58,500

	$	98,600	$	—	$	—	$	—	$	(4,733	)	$	8,500	$	93,867

(6)

Aggregate net unrealized appreciation for U.S. federal income tax purposes is $3,226; aggregate gross unrealized appreciation and depreciation for U.S. federal tax purposes is $59,516 and $56,290, respectively, based on a tax cost of $337,604. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. All investments are Level 3 unless otherwise indicated.

(7)	Our equity investment in North Mill Capital LLC is partially held through ESP SSC Corporation, a taxable consolidated subsidiary.

(8)	Spread is 6.00% Cash / 2.50% PIK.

(9)

Indicates an investment that is wholly or partially held by SLR Senior Investment Corp. through its wholly-owned financing subsidiary FLLP 2015-1 LLC (the “FLLP SPV”). Such investments are pledged as collateral under the FLLP 2015-1, LLC Credit Facility (the “FLLP Facility”) (see Note 7 to the consolidated financial statements) and are not generally available to creditors, if any, of the Company.

(10)	Kindred Biosciences, Inc., KindredBio Equine, Inc. and Centaur Biopharmaceutical Services, Inc. are co-borrowers.

(11)	Spread is 3.00% Cash / 2.23% PIK.

(12)	Spread is 5.00% Cash / 1.00% PIK.

†	Non-income producing security.

††	Investment contains a payment-in-kind (“PIK”) feature.

See notes to consolidated financial statements.

SLR SENIOR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2020


Industry Classification	Percentage of Total Investments (at fair value) as of December 31, 2020
Diversified Financial Services (includes Gemino Healthcare Finance, LLC and North Mill Holdco LLC)		27.6	%
Insurance		15.6	%

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller Reporting company

Emerging growth company

SEC Form 10-Q filed by Solar Senior Capital Ltd.