July 31: From the IQ 2016 10-Q.
July 22: TSLX,FSIC, FSIC II, FSIC III
July 19, 2016: The BDC Activist reviews TICC Capital's (TICC) latest announcement about its investment strategy, and provides an unsolicited suggestion about what the Board of the troubled BDC should do for its long suffering shareholders.
The BDC Activist reports on new issuance of medium term, unsecured Notes by Alcentra Capital (ABDC) at all-in rates around 6.5%. We question the benefits to shareholders-if any-from issuing this debt capital given the high interest rate paid, the ensuing cost in management and incentive fees and other factors. Part of a general trend in the BDC sector of raising Non Accretive Capital.
BDC EXPOSURE: Business Development Corporation of America
Sparked by the news of retailer Aeropostale's bankruptcy, the BDC Credit Reporter took advantage of the search capabilities of Advantage Data-which maintains a database of every investment asset in the BDC ecosphere-to take a snapshot of exposure to the changing world of shopping. Teaser: Guess which BDC has the biggest commitment to Retail...
The BDC Credit Reporter alerts its readers to new developments at one of Golub Capital's (GBDC) under-performing portfolio investments: Avatar Solutions. For the full details, click on our easy to use new file format at the end of the article.
The BDC Credit Reporter discussed the credit problems at BlackRock Capital (BKCC) after the release of its quarterly filing but before the ensuing Conference Call. After listening to the management and spending more time with the data, we make some additional comments about BKCC's under-performing AND performing investments, and discuss the likely way forward.
As a heads up, the BDC Credit Reporter points out to FS Investment (FSIC) and KCAP Financial (KCAP) shareholders that BlackRock Capital's write-down of Advanced Lighting Technologies might be repeated in their portfolios once results are filed for the quarter, given that they all have similar exposure to the company.
The BDC Credit Reporter provides a brief update on the poor credit performance at BlackRock Capital (BKCC) in the first quarter of this year, after a similarly disappointing fourth quarter of 2016. In a very short period the investment portfolio has gone from hero to zero. We provide details and updates. More to come after the Conference Call.
The BDC Credit Reporter reviews a multitude of company filings every morning, looking for news about under-performing BDC borrowers. This article is about Gymboree Corporation-yet another retailer with problems-which has just borrowed from Peter to pay Paul. We discuss developments and look at BDC exposure to the Company.
The BDC Credit Reporter adds another sad story about Retail Gone Wrong. Unfortunately, Sports Authority-already in Chapter 11-has given up trying to emerge therefrom and is heading for liquidation. Thousands of employees will lose their jobs and $1.1bn in debt is in question. 4 BDCs have exposure to the Company. However, the BDC with the greatest to lose is TPG Specialty (TSLX)...
The BDC Credit Reporter updates readers on the questionable state of another troubled retailer-Charlotte Russe-and details Business Development Company exposure to the company. We review recent downgrades by S&P and Moody's and provide our own perspective on what might happen next, and the potential impact on the income and equity of the BDC lenders involved.
The BDC Activist has opined in the past about the SEC's green light to many managers of multiple funds to populate their portfolios with loans from the same borrower. Fifth Street Asset Management (FSAM) has just announced another transaction shared between its two public BDCs. The BDC Activist does not approve in principle, and explains why.
Our first Guest Contributor-and CEO of Saratoga Investment (SAR)-Chris Oberbeck provides useful advice to Millennials about getting started in Business Development Company investing. You can also follow Chris on his own regular blog and on Twitter.