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.
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.
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 takes a quick look at Peabody Energy post bankruptcy, and after reading a new article about the process on Seeking Alpha. Expects losses to bondholders and lenders to be huge but amongst BDCs only American Capital Senior Floating (ACSF) has any exposure. There will be blood, but not much.
We do not only track what is happening to individual companies in BDC portfolios, but also entire sectors facing unusual and unexpected stresses. We've identified 6 so far and start with the obvious: Oil & Gas. What could have been avoided has turned into a huge set-back for many BDC companies, and may play out for much longer, and with even worse results.
The BDC Credit Reporter updates an earlier article about BDC exposure to the Retail sector with a new entrant: Things Remembered, an Ares Capital portfolio company. We provide background details and Breaking News about the hiring of a turnaround firm...We also wonder if we need to take a broader look at the impact of falling mall traffic.
The BDC Credit Reporter takes a quick look at Monroe Capital's credit performance and investment portfolio at year end 2015. There is much to cheer about, but we also point out incipient risks that might affect future underwriting performance.