BDC common stock prices do not break any new records, but still remain high. Plus, the soon-to-be second largest BDC discloses its debt financing structure.
We re-publish an article from the BDC Credit Reporter about developments at Sequential Brands that could materially impact FS KKR Capital and FS KKR Capital II.
Both FS KKR Capital and FS KKR Capital II provide preliminary IVQ 2020 results that are better than guidance and the prior quarter. The BDC Reporter, though, uses the opportunity to look at key metrics over a longer time frame and ask some existential questions.
A public company, which is in the portfolio of three different BDCs, has been charged with accounting fraud by the SEC, as recently mentioned in the BDC Credit Reporter. We re-publish the article and discuss which BDCs are involved and for which dollar amounts.
As expected, the two FS KKR public BDC funds are planning to merge. However, there’s an unexpected change in compensation that will leaves shareholders of the super-sized BDC much poorer.
Over the weekend a major portfolio company of FS KKR Capital and recently public FS KKR Capital II filed for bankruptcy. Both sister BDCs have substantial exposure.
BDC sector prices offer mixed messages even as the S&P ekes out a win. We also discuss a disconcerting increase in bankruptcies and the newest public BDC.
The biggest BDC-financed company bankruptcy of the year – and the 8th this month – happened on June 18. We re-publish a full report from the BDC Credit Reporter, but first discuss how so many BDC lenders have been caught out lending into the flawed energy model. Corrected June 22, 2020: An earlier version of this article included Main Street and HMS Income incorrectly as lenders to the bankrupt company.
The BDC Reporter welcomes the most recent addition to the public BDC sector : FS KKR Capital II. We discuss how the BDC just switched from non-listed to listed and review the history; balance sheet; dividend and credit quality of the new player. We also place this expansion of the size of the public BDC sector in a broader context and ask some hard questions.
“What goes up will come down” as BDC sector prices proved this week as volatility resumed. Also there were other notable developments including equity capital raised; a surprise dividend and important shareholder approvals. We also discuss the surprising change the size of the BDC sector is likely to take in the days and months ahead.