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BDC News Of The Day: March 28, 2017

Here are the main news items and SEC filings from all the publicly traded and non-traded BDCs that we track for Tuesday March 28 2017 as of 10:00 a.m. EST. External links to articles or filings are in blue, internal links to BDC Reporter’s prior posts on the subject are in red. Where appropriate, we add brief comments. Like yesterday-when we initiated this feature-the news day is light:

 

OWNERSHIP FILINGS

Fifth Street Finance: Filed a Form 4 :Statement Of Changes In Beneficial Ownership

Again, Leonard Tennenbaum has been buying stock in Fifth Street Finance (FSC): over 600,000 shares from 3-23 to 3/27. A portion were acquired for a family trust. Average price paid was around $4.6.

 

PROXY FILINGS

TCP Capital Corp: Filed a Schedule 14 A: Definitive Proxy Statement

This is the proxy that will be sent to all TCP Capital’s (TCPC) shareholders, with two major resolutions: 1. Election of 7 Director nominees to the Board; 2. Approve a resolution permitting issuance of stock below NAV. The Board meeting is scheduled for May 25th, and the issues before shareholders are (rightly or wrongly) deemed uncontroversial. Nonetheless, expect the BDC Reporter to have some choice comments about TCPC’s corporate governance and the alignment or otherwise of the Investment Advisor and the Board with shareholders.

 

EARNINGS RELEASE

Great Elm Corporation: Announced Earnings Release For Wednesday March 29, 2017 after the close.

If we’ve counted right, Great Elm’s (GECC) earnings release will cap off the 2016 earnings season. The results will be of great interest as this will be the first full quarter for the most recently minted BDC since its acquisition of Full Circle Capital and its absorbing of certain other assets from a fund managed by its Investment Advisor. As we discussed back on January 6th, 2017, GECC has pre-announced its distributions. What is not known is how the investment portfolio is faring. We discussed developments at the BDC’s largest single investment: Avanti Communications, in an article on February 1st. That’s probably going to be said to be on track, judging from the recent restructuring which members of Great Elm’s advisory team were involved with. What we’ve not had time to explore how the other major investment on GECC’s books: Optima Steel is performing after filing for Chapter 11 last Christmas, and scoring a Debtor In Possession facility in January. Beyond that, we’ll be interested to see how the rest of the portfolio inherited from Full Circle-many of which had credit issues-is performing and how far along GECC has gotten in turning over its portfolio so that its unique BDC model (investing in bonds and loans of complex credits acquired in the secondary market) gets rolled out. Finally, we’ll be curious to see how the new BDC will be financing itself, and see if there are any plans to repay or refinance the existing Baby Bonds with the ticker FULLL.