SLR Investment Corp. announced the closing of the previously announced merger with SLR Senior Investment Corp. (“SUNS”), with SLRC as the surviving company. The combined company will operate as SLR Investment Corp. and continue to trade on the NASDAQ Global Select Market under the ticker symbol “SLRC.” Based on December 31, 2021 financial information, the combined company has approximately $2.6 billion of total assets and $1.1 billion of total net assets on a pro forma basis.

“We believe the combined company will provide several long-term benefits to shareholders,” said Bruce Spohler, Co-Chief Executive Officer of SLR Investment Corp. “The reduction of the base management fee, cost savings through synergies, and opportunities to reduce our borrowing costs will enhance the combined company’s net interest margin.”

“The combined portfolio provides shareholders with increased diversification and access to a broader set of niche private lending strategies,” said Michael Gross, Co-Chief Executive Officer of SLR Investment Corp. “As of December 31, 2021, on a pro forma basis, approximately 70% of the combined company’s income was attributed to specialty finance loans and approximately 30% was attributed to cash flow loans. We believe SLRC’s unique mix of asset-based loans and first lien senior secured cash flow loans to sponsor-backed U.S. upper middle market companies provides shareholders with an attractive and differentiated return profile.”

In connection with the merger, former SUNS shareholders will receive 0.7796 shares of SLRC for each share of SUNS based on the final exchange ratio, subject to payment of cash in lieu of fractional shares. As a result of the merger, legacy SLRC shareholders and former SUNS shareholders own approximately 77% and 23%, respectively, of the combined company.

In addition, upon closing of the merger, SLRC’s annual base management fee payable by SLRC to SLR Capital Partners, LLC (“SCP”) was lowered from 1.75% to 1.50% on gross assets up to 200% of SLRC’s total net assets and SLRC retained the annual base management fee payable by SLRC to SCP of 1.00% on gross assets that exceed 200% of SLRC’s total net assets. SLRC’s target leverage ratio will remain at 0.90x —1.25x debt-to-equity.

Keefe, Bruyette & Woods, A Stifel Company, served as financial advisor and Blank Rome LLP served as the legal counsel to the special committee of SLRC. Houlihan Lokey Capital, Inc. served as financial advisor and Dechert LLP served as the legal counsel to the special committee of SUNS. Katten Muchin Rosenman LLP served as the legal counsel to SLRC, SUNS and SCP.