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.
We continue to develop the BDC Credit Reporter by building a database of every investment at every BDC. In the interim, we offer up some highlights and low lights from our credit research into mid-market BDC Capitala Finance (CPTA), which has managed to both be very successful and make many credit mistakes in recent quarters.
The BDC Reporter has a look at the recently announced new fee agreement between Apollo Investment (AINV) and its External Manager (Apollo Global management) and the proposed new stock buy-back initiative. Although the stock price is flying on the news, the BDC Activist is unmoved...
We republish and expand upon a long comment the BDC Reporter made to articles on Seeking Alpha by activist Gary Chodes about Stellus Capital Management (SCM). We consider claims that SCM is not accurately marking assets, mis-categorizing energy loans and other issues legitimately worrying Mr Chodes, and share our own research.
We re-publish the BDC Reporter's Weekly Newsletter this one time to illustrate to non-subscribers what you get by signing up: a reminder of articles written and issues tackled in the past week and varying amounts of commentary about "What's Up" in the BDC Sector. If that's of interest, please sign. Unsubscribing is as easy as subscribing.