The BDC Reporter has a first look at the just announced but not unexpected sale of American Capital (ACAS) to Ares Capital (ARCC). We debate if the price to be paid-and its form-is a Good Deal or otherwise for the patient investors in the troubled BDC, and what the future might hold with Ares Capital at the helm.
The BDC Credit Reporter adds a new company to its Master File of all BDC-funded companies. The addition is Healthcare Associates of Texas. The only BDC with exposure is Alcentra Capital (ABDC). Read our full file for all the initial details: http://bit.ly/1sMZ1pZ.
5-21-2016: We've just updated our file on AAR Intermediate Holdings, a privately-held oil services company owned by multiple Business Development Companies (including Medley Capital and CM Finance) and which is on non-accrual. Not much has happened this quarter from a valuation perspective. Nonetheless, we expect the $4mn in equity exposure by the BDCs to be written off, and 50%-100% of…
The BDC Credit Reporter reviews Apollo Investment's portfolio in the first of a two parter. In Part One we look at the BDC's troubled energy investments, which have been dragging down the BDC's results and stock price for many quarters. Has a corner been turned ?
The BDC Credit Reporter highlights an operator of restaurants whose business fortunes are weakening and might impact two of the largest Business Development Companies with debt exposure. We mention the company, the BDCs involved and the dollars at risk.
5-19-2016: Sports retailer Dick's Sporting Goods reported weaker than expected sales in the first quarter of 2016, despite weaker competition from several bankrupt competitors. Key metrics from the BDC Credit Reporter's standpoint: "Same-store sales are expected to decline 4% to 1%...[Actual] Same-store sales edged up 0.5%... Same-store sales for Dick's Sporting Goods increased 0.4%, while Golf Galaxy rose 1.7%." This…
The BDC Credit Reporter's Credit Report for Saratoga Investment (SAR) following the publishing of its 10-K for the year ended February 2016. We look at which portfolio companies and investments are under-performing, and why, and seek to evaluate their potential impact on the Company's Net Asset Value and recurring earnings.
We provide an update on how the Sports Authority bankruptcy is going and the likely impact on TPG Specialty (TSLX), FS Investment (FSIC) and two other non-traded Franklin Square funds that have exposure to the failed athletic store chain.
The BDC Credit Reporter undertakes an in-depth review of Fifth Street Senior Floating Rate's (FSFR) investment portfolio following the release of the first quarter 2016 10-Q filing, and using additional information from Advantage Data. We look at realized credit losses and potential write-downs in the quarter and over time. Required reading (if we do say so ourselves) for any investor in FSFR.
BDC Credit Reporter Alert discusses the May 10th payment default at Warren Resources, an oil and gas producer and another company on our Master Watch List. We share our updated view on what might happen to the senior lenders to the Company, which include very large amounts held by several FS Investment funds. We also link readers to our full file on the Company.
The BDC Credit Reporter Alert discusses a new restructuring underway at Cenveo Corporation, and the potential impact on BDC exposure to the Company. Main Street Capital (MAIN) and Hms Income (HMS) have made Senior Secured advances, which are on our Watch List. Click on the attached file for all the news and background info.
The BDC Credit Reporter delves into the two Ares Capital (ARCC) loans that came off non-accrual in the first quarter of 2016 and questions whether the Company is really turning the corner from a credit point of view.