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BDC News Update: Who’s Doing What ?

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Here’s what we learned from preparing the BDC News Of The Day for the first two business days of 2018. We have 5 items worth noting. Where appropriate, we offer up Suggested Reading from the BDC Reporter archives. For all the details, links, etc.  go to the Daily News Table

1. Who’s Worried About Their Stock Price ?

New Mountain Finance: NMFC

Despite reporting stable results and dividends for years, NMFC’s stock price closed at $13.70, 3% off its 52 week low and (8.7%) off its 52 Week high. Price has been on downward trend since April 2017. So, NMFC announced extension of $50mn buy-back program as sign of willingness to buy back shares. Just how low does the price have to go ? Well, NAV Per Share is $13.61…

Suggested Reading: 12/4/2017 NMFC: Dividend Outlook

2. Who’s Booking Big Fees in the IQ 2018 ?

Hercules Technology : HTGC

The technology BDC refinanced debt with an existing borrower, which included a 1/1/2018 fee of $540,000. Further fees are coming in 2019 and on debt repayment.

3. Who’s Been A Busy Technology Lender ?

Horizon Technology Finance: HRZN

The technology BDC – one of 3 public BDCs in this segment – has announced two loans booked in late December 2017 for an aggregate of $27mn. In one case HRZN seems to have repaid Solar Capital. In another adding debt to company in which they’re already invested at equity level. Are these signs that HRZN is back after suffering from multiple credit losses and a dividend cut ? The market seems to think so, given that the stock price is rising and close to a 52 Week High.

4. Who’s Making Changes In the C-Suite ?

Main Street Capital: MAIN

Co-founder and CEO and Chairman Vince Foster is kicking himself upstairs to the role of Executive Chairman at this most popular of all the BDCs. Long time senior manager and current President Dwayne Hyzak gets the top spot by the IVQ of 2018 and a seat on MAIN’s Board right away. How will the army of retail investors react to the shift in leadership ?

5. Who’s Seeking To Boost Their Stock Price By Press Release ?

Capitala Finance: CPTA

The BDC issued a press release giving some positive facts about loans booked in the IVQ 2017 and the sale of an equity investment for a gain. Also, mention made of insiders increasing their ownership in the BDC. With the stock price at $7.51 (4%) off its All-Time Low, CPTA is seeking to suggest that the turnaround needed to improve the business – and maintain the current $1.0 a year dividend – is happening.

Suggested Reading: 1/3/2018 Capitala Finance: Dividend Outlook.

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