(New York, NY) July 1, 2014 – Sierra Income Corporation (“SIC”), a business development company that targets senior secured investments in US middle market companies, announced today that it invested more than $90 million in originated transactions during the second quarter of 2014.
Ten originated transactions totaling more than $90 million were added to the portfolio. Highlights include the following:
- A senior secured 1st lien term loan and equity investment made to a leading developer and value-added manufacturer of specially formulated, science-based nutraceutical products.
- A senior secured 1st lien term loan made to a restaurant management company operating more than 200 locations, primarily in the western United States.
- A senior secured 2nd lien term loan made to a leading manufacturer and distributor of aftermarket parts and accessories for the motorcycle and power sports industries.
”We are pleased to report that more than $90 million of originated investments were added to the portfolio during the second quarter”, said Seth Taube, CEO of Sierra Income Corporation. “We continue to successfully leverage our proprietary origination network to source attractive senior secured investment opportunities in middle market debt. The growth of our lending portfolio, combined with our ability to co-invest among funds, allow us the ability to provide innovative financing solutions to a broad range of dynamic middle market companies” continued Mr. Taube.
About Sierra Income Corporation
Sierra is a non-traded, externally managed, non-diversified closed end management investment company that has filed an election to be treated as a business development company under the Investment Company Act of 1940, as amended. The Company’s investment objective is to generate current income, and to a lesser extent, long-term capital appreciation. The Company invests primarily in senior secured debt, second lien debt and, to a lesser extent, subordinated debt of U.S. small and middle market companies with enterprise values ranging from approximately $50 million to $4 billion. Sierra’s investment activities are managed by its investment adviser, SIC Advisors, LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended.
About SIC Advisors LLC
SIC Advisors LLC, an affiliate of Medley LLC (“Medley”), is a registered investment adviser under the Investment Advisers Act of 1940, as amended. Medley specializes in credit investing, including direct private lending and corporate credit related strategies and provides first lien, second lien and unitranche term loans to lower middlemarket and middle-market companies with an investment size between $7 and 50 million. Medley supports acquisition and growth financings, leveraged buyouts, management buyouts, bank debt restructurings, CAPEX, Chapter 11 exit financing and DIP financing. Medley is headquartered in New York with offices in San Francisco.
There can be no assurance that we will be able to sustain distributions at any particular level. All distributions are subject to board approval. Sierra’s previous distributions to stockholders were funded from expense support payments that are subject to repayment to its investment adviser, SIC Advisors LLC (“SIC Advisors”). The level of these distributions was not based on our investment performance and may not continue in the future. If SIC Advisors had not agreed to make expense support payments, these distributions would have come from paid in capital. The reimbursement of these payments owed to SIC Advisors will reduce the future distributions to which investors would otherwise be entitled.