SLR Investment, SLR Senior Investment complete merger

SLR Investment Corp. completed its previously announced merger with SLR Senior Investment Corp., with SLR Investment as the surviving company.

In connection with the merger, for every share of SLR Senior Investment, its shareholders will receive 0.7796 shares of SLR Investment, based on the final exchange ratio, and cash in lieu of fractional shares.

As a result of the merger, legacy SLR Investment shareholders and former SLR Senior Investment shareholders own approximately 77% and 23%, respectively, of the combined company.

"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," said Bruce Spohler, co-CEO of SLR Investment.

Based on Dec. 31, 2021, financial information in the company's release, the combined company has approximately $2.6 billion of total assets and $1.1 billion of total net assets, on a pro forma basis.

Upon completion of the merger, SLR Capital Partners LLC's annual base management fee payable by SLR Investment was lowered by 25 basis points to 1.50% on gross assets up to 200% of SLR Investment's total net assets. SLR Investment retained the annual base management fee payable by them to SLR Capital Partners of 1.00% on gross assets that exceed 200% of SLR Investment's total net assets. SLR Investment's target leverage ratio will remain at 0.90x —1.25x debt-to-equity.

Keefe Bruyette & Woods served as financial adviser and Blank Rome LLP served as the legal counsel to the special committee of SLR Investment. Houlihan Lokey Capital Inc. served as financial adviser and Dechert LLP served as the legal counsel to the special committee of SLR Senior Investment. Katten Muchin Rosenman LLP served as the legal counsel to SLR Investment, SLR Senior Investment, and SLR Capital Partners.