Solar Capital Ltd. has acquired NEF Holdings LLC, which conducts business through unit Nations Equipment Finance LLC, in a $210 million deal.
NEF is expected to distribute substantially all of its earnings to Solar on a quarterly basis. Solar expects the acquisition to be immediately accretive to investment income in the third quarter. Based on NEF's existing portfolio, the investment would generate quarterly net investment income for Solar of approximately 4 cents to 5 cents per share.
Pro forma for the acquisition and based on outstanding debt at June 30, Solar's leverage would have been 0.55x debt-to-equity.
Founded in 2010 by former GE Capital equipment finance professionals, NEF provides senior secured financings to U.S.-based companies. It has underwritten about $1.0 billion of equipment financings since it began.
Keefe Bruyette & Woods Inc. acted as NEF's exclusive financial adviser on the deal.