Solar Senior announces plans for first-lien loan program with Voya

By Jennifer Chiou

New York, Sept. 10 – Solar Senior Capital Ltd. announced that it has entered into a joint venture agreement to create a first-lien loan program with Voya Investment Management.

According to a news release, the joint venture is expected to invest primarily in senior secured term loans to middle-market companies predominantly owned by private equity sponsors or entrepreneurs consistent with Solar Senior’s core origination and underwriting mandate.

Solar Senior and Voya have committed to provide $50 million and $7.25 million of capital, respectively, to the joint venture.

The program will seek third-party financing that is expected to allow the joint venture to use leverage up to a ratio of about 2 times debt to equity.

Solar Senior and Voya expect to begin funding the portfolio with new investments prior to the end of 2014.

“The strategic partnership with Voya is an important long-term growth initiative that we believe will expand our origination capacity,” Solar Senior chairman and chief executive officer Michael Gross said in the release.

Voya acts as the investment adviser for several wholly owned insurance subsidiaries of Voya Financial, Inc.

Based in New York, Solar Senior invests primarily in leveraged, middle-market companies in the form of senior secured loans, including first-lien, unitranche and second-lien debt instruments.

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