SEVN raises $61M via rights offering, grows portfolio 12% but cuts dividend 20% on dilution

Filed April 28, 2026 · Period ending March 31, 2026 · Compared to 10-Q Apr 28, 2025 · ~2 min read

Key Changes

• high

  Completed $61.5M rights offering in December 2025 at $8.65/share (52% below prior book value), issuing 7.5M shares and diluting book value per share 20% from $18.04 to $14.47. Quarterly dividend cut 20% from $0.35 to $0.28 to align with lower per-share earnings.

  MD&A: Rights Offering and Book Value verify on EDGAR →
• high

  Portfolio grew 12% to $776M across 26 loans, funded by rights offering proceeds. Extended UBS and Wells Fargo facilities to 2028 and doubled Wells capacity to $250M, providing runway for continued growth at higher leverage (target raised from 75% to 80%).

  MD&A: Portfolio Growth and Financing verify on EDGAR →
• high

  Weighted average loan coupon fell 63 basis points year-over-year to 7.44%, compressing net interest margin despite 68-bp decline in borrowing costs to 5.84%. Distributable earnings per share dropped 29% from $0.34 to $0.24, driven by dilution and margin pressure.

  MD&A: Earnings and Margin Compression verify on EDGAR →