Judging only by the IIQ 2020 results, MCC’s performance was FAIR. Not so good: Net Investment Income was negative – despite credits on legal costs and a cap on operating costs agreed with the manager. With a third of the portfolio in non income producing investments, MCC’s expenses are far outstripping income. Obviously that leaves no room for a dividend for the sixth quarter in a row. A little better: the total fair market value of the remaining portfolio increased in the period, increasing NAV per share. Liquidity, too, is good with over $50mn sitting in cash and the only debt remaining the two Baby Bonds.  We’ve not yet undertaken a Credit Review, but the last time we checked almost half the BDC’s assets were underperforming, so we expect our internal rating will remain POOR. The Long Term Outlook for the BDC remains as POOR as ever, even with the recent 20:1 reverse stock split and an activist pushing for debt and stock buybacks.

For all the First Look reviews of IIQ 2020 BDC results, check out the BDC Data Table. We are constantly adding new updates as results come in and we undertake an initial survey. Besides these reports, we are also filling in NAV Per Share and investment portfolio size data to compare with prior periods; adding company or BDC Credit Reporter generated data on underperforming companies and assets and affirming or amending our earlier assessments of every BDC’s Liquidity, Credit, Dividend and Long Term Outlook.