American Capital (ACAS) announces a "strategic review" even as the company prepares to spin off the bulk of its assets into a new Business Development Company in a nod to pressure from its major shareholder, activist hedge fund Elliott Management. Will this "unlock shareholder value" or go nowhere ?
A reader of the BDC Reporter is an investor in BDC Baby Bonds, and had some questions about our view of their creditworthiness, especially in the light of new BDC legislation wending through Congress. A back and forth Q&A ensued which we are tidying and republishing for our readers.
Under-performing KCAP Financial (KCAP) was approached by its 3rd largest shareholder in October, requesting a stock buy-back or a sale of the Company to restore shareholder value. We review the activist shareholder's views, and provide an update on what has happened to date. Part of a series.
The struggle over who will manage TICC Capital rages on, while 3 new BDC companies have attracted the attention of "activist" shareholders. We briefly summarize who the new targets are, and who is doing the targeting and we provide an update on what is happening at TICC. First in a series.
The latest chapter in the TICC Capital (TICC) saga. The current External Manager changes the Proxy for shareholders at a judge's request. We break down the principal revelations. However, we continue to believe TICC Management is going to get its way with shareholders, and BSP will be anointed as Investment Adviser.
WhiteHorse Finance (WHF) announces an equity Rights Offering with a short fuse. This raises questions in our minds as to what the Company's goals are and whether this will serve as a precedent for other BDCs starved for new capital for many months now. We also disclose our investment group's short position in the stock and long in the...
We complete the BDC Reporter's review of all three contenders for TICC Capital (TICC) with an in-depth look at NexPoint Advisors bid. This subsidiary of Highland Capital has a different approach than Benefit Street Partners and TPG Specialty (TSLX). But is different better ?
The BDC Reporter offers up an in-depth review of TPG Specialty Lending's (TSLX) offer to acquire TICC Capital's (TICC) stock. We've previously looked at the proposal by Benefit Street Partners to become TICC's External Manager. TSLX just wants to buy TICC outright. We review the would-be buyer's key arguments with a jaundiced eye.
Just after we wrote an evaluation of the TICC-BSP proposal to manage TICC Capital last Friday, the Company issued a new presentation on Monday to shareholders. TICC repeated many points made previously, but also added several new comments which we could not help but bring to our readers attention, and which leave us more confused than ever.
The BDC Reporter will be reviewing each of the three outstanding proposals to manage TICC Capital (albeit with a new name and ticker) from Benefit Street Partners, TPG Specialty and NexPoint Advisors. We begin with the current Board's favorite: Benefit Street Partners, go deep into the Proxy and come to some disturbing conclusions.