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BDC Wrap-Up: Monday August 20, 2018

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With a large number of Business Development Companies making special entreaties to shareholders about increasing leverage in the wake of the Small Business Credit Availability Act, not to mention all the normal corporate governance issues that have to be contended with, we have decided to add a new feature: “BDC Shareholder News”. The idea is to track material items that affect shareholder rights and the divvying up of the earnings pie between owners and managers. Of course, the BDC Reporter will be wearing a shareholder hat when discussing the pro and cons of items that come to a vote or when reviewing Board approved changes in compensation, corporate governance and the like. After all, who else out there is looking out for BDC shareholders but the BDC Reporter ? We are using the same format as for BDC News and Fixed Income: the occasional in-depth article and – more commonly – chronologically arranged links to the latest developments with accompanying brief commentary every time something important happens. Just look in the Subscriber Tools section for BDC Shareholder News. We’ve already populated the new feature with several items, beginning in the month of August. In the future, we’ll seek to provide comprehensive coverage, updated daily. Any feedback appreciated. Just write to nmarshi.bdcreporter@gmail,com.


Frankly, the BDC Reporter cannot adequately update  our daily news features in real time while on vacation or on a trip, which was the case last week. However, we’re back at the helm and have used the weekend to update both the BDC Daily News and the BDC Fixed Income News. Especially in the former, there are a host of new items and much on-the-run commentary, given that the week ended August 17, 2018 was a busy one on multiple fronts. We don’t just report BDC developments, we add a sprinkling of analysis and opinion that you won’t find anywhere else.  Serves as a useful way to catch up an insight or two and as a (almost) complete record of everything that has been happening across the public BDC sector on a day-by-day basis. Check out BDC Daily News and BDC Fixed Income News in the Tools section.


At the close on Monday August 20, 2018 the only BDC moving 3.0% or more in either direction was tiny OHAI, bouncing around like a ping pong ball from day to day. In this case OHAI moved up as high as $1.68 from a prior close of $1.45, but closed at $1.51, or 4.% up. Volume was normal. Otherwise a quiet day in the BDC common stock and fixed income markets. In the case of the latter no individual issue moved more than 0.74% on the day.


Just one items today. At Capital Southwest (CSWC) the CEO filed a Form 4, following the partial exercise of an option, showing the acquisition of 50,000 shares at a price of $11.53. The market price at the open was $18.63. In toto Mr Diehl and his wife (through a  holding company) own just over 300,000 shares in CSWC with a value of $5.6mn.


There are only two BDCs that have not reported earnings as yet. One is PSEC, the other is  CM Finance (CMFN) whose earnings release and Conference Call date and time have just been added to the BDC Earnings Calendar.

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