Solar Capital (SUNS, SLRC-NASDAQ, SLRA-NYSE?)

[aagha]

I was recently introduced to Solar Capital but cannot figure out how this company/stock is structured.

There seems to be the company with a 7.3% yeild (SLRC) a senior debt entity (SLRA) that's returning 8%+, and then SUNS, also senior capital (not debt) with a 7.8% yield?

Anyone seen a structure like this? Is this a dividend growth stock? What's going on and does anyone have this in their portfolio?

[earthtodan]

It's a BDC (business development corporation) which means makes loans to companies. Not necessarily dividend growth or low risk for that matter, because it depends on the stability of repayments. There's an author on Seeking Alpha called BDC Buzz who writes articles ranking and comparing them pretty regularly.

[Be Here Now]

(07-16-2014, 04:56 PM)aagha Wrote: I was recently introduced to Solar Capital but cannot figure out how this company/stock is structured.

There seems to be the company with a 7.3% yeild (SLRC) a senior debt entity (SLRA) that's returning 8%+, and then SUNS, also senior capital (not debt) with a 7.8% yield?

Anyone seen a structure like this? Is this a dividend growth stock? What's going on and does anyone have this in their portfolio?

Here are some decent sources of information:

http://www.investingdaily.com/11059/busi...nvestment/

http://bdcreporter.com/primer-on-bdc-industry/

I recommend that you spend some time with articles written by BDC Buzz on Seeking Alpha: http://seekingalpha.com/author/bdc-buzz

Also Factoids on Seeking Alpha: http://seekingalpha.com/author/factoids?s=factoids

To my knowledge these two write the best free analytics on BDCs. Wells Fargo publishes high quality analytics for its brokerage customers.

To answer your last question, I own a number of BDCs, including ARCC, BDCL, HTGC, MAIN, NMFC, TCPC.