Debra BorchardtSilver Spike Investment Corp. is switching things up after purchasing a portfolio of loans from Chicago Atlantic Loan Portfolio LLC (CALP). SSIC became a business development company, or BDC before the deal. The entity was renamed Chicago Atlantic BDC Inc., and its ticker symbol on the Nasdaq will change to LIEN, effective at the opening of business on Oct. 2.
The new company is the only Nasdaq-listed BDC focused on lending to cannabis companies. It has net assets of approximately $300 million and investments in 28 portfolio companies.
The deal follows Chicago Atlantic’s successful management of Chicago Atlantic Real Estate Finance Inc. (NASDAQ: REFI), one of Nasdaq’s highest-performing commercial mortgage real estate investment trusts (REIT) based on total returns since its IPO in 2021.
“This is an accretive opportunity from which all shareholders and team members can benefit,” added John Mazarakis, a partner at Chicago Atlantic, “Silver Spike and Chicago Atlantic share synergistic goals, and we are excited to collaborate, innovate and drive collective results for the benefit of our shareholders.”
As a result of the Loan Portfolio Acquisition, CALP and legacy SSIC stockholders own approximately 72.8% and 27.2%, respectively, of the outstanding shares of the Company’s common stock.
The deal was first announced in February, when Chicago Atlantic BDC Holdings LLC and its affiliates agreed to a joint venture with Silver Spike Capital LLC (SSC), the investment adviser of Silver Spike Investment Corp (NASDAQ: SSIC).
C-suite moves
In a statement, Chicago Atlantic BDC announced that Scott Gordon, SSIC’s CEO and CIO, and Umesh Mahajan, a partner at SSIC, would continue to be part of the new entity’s management team. Gordon will serve as executive chairman of the board of directors and the co-chief investment office, while Mahajan will take on the roles of co-chief investment office, CFO and secretary.
Andreas Bodmeier, a partner at Chicago Atlantic, assumed the role of chief executive officer, and Dino Colonna, previously partner and co-head of credit at SSC, has assumed the role of president.
“Chicago Atlantic seeks to capitalize on opportunities in private markets by providing debt capital to lower middle market companies, typically non-sponsor, and unique industries facing structural reasons for an insufficient supply of capital,” Bodmeier said. “The rapidly growing cannabis sector represents a compelling example.”
One comment
michael mclaughlin
October 1, 2024 at 8:00 pm
Loaning money to cannabis companies right now, in more mature markets, is risky. It remains to be seen if there is commercial viability of cannabis. It appears that in states with cannabis, everything goes well for 3-5 years and then trouble starts. Most in the business do not make money or much money., and many of the big boys are borrowing their way to success. So far.