A change at the helm of two Oaktree-managed BDCs with the departure of CEO Edgar Lee. We discuss the legacy of the last two years and the challenges facing Oaktree Strategic Income. This is Part I. In Part II, we’ll undertake a similar exercise for Oaktree Specialty Lending.
We share highlights from the BDC Credit Reporter’s compilation for the week of developments amongst under-performing portfolio companies, naming the BDCs and the amounts involved.
A famous discount retailer gets restructured and three BDCs with more than $50mn of exposure are involved. We re-publish our post from the BDC Reporter and discuss both the credit issues and the valuations involved.
The BDC Reporter annotates the Oaktree Strategic Income Conference Call transcript in our unique feature. We have a large number of comments, rhetorical questions and asides.
Oaktree Strategic Income repays one financing with a new one. All part of the BDC’s attempt to leverage up to a debt to equity of 1.6x, but there’s a long way to go and key questions remain unanswered.
Mixed messages about the short term direction of the BDC Sector. The BDC Reporter, though, quantifies how drastically the shape of the sector will change in the next 2 years and which could yet cause BDC prices to shift.
Oaktree Strategic Income takes a step towards leveraging up its balance sheet by receiving a waiver of the 200% asset coverage from its lenders. We run the numbers, though, and are not convinced shareholders will benefit.
The BDC Sector had a decent week and good month, especially when compared with the major indices. Are BDC stocks headed for a rally after a year in the doldrums ?