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Solar Senior Capital: Its Accretive Acquisition Should Cover Dividends

Solar Senior Capital (NASDAQ:SUNS) is one of the 'safer' BDCs that invests in higher quality middle market companies in the form of senior secured loans but has struggled to cover dividends since its equity offering earlier this year. However the company reported financial results yesterday, after the market close, that contained details for its recent purchase of Gemino Healthcare Finance which I believe could bridge the gap for the company to cover dividends next quarter. This acquisition will give them the ability to expand originations for small and mid-sized companies operating in the healthcare industry offering primarily secured, asset-based loans. It will also allow the company to grow income through senior-secured commitments funded with a new, four-year $100

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