The BDC Reporter – using the resources of Advantage Data and its own research – analyzes BDC exposure to a segment of the oil & gas industry. Second in a series.
BDC Fixed Income prices have held up well during the first two weeks of the market meltdown. However, with changes in interest rate and credit conditions changing quickly, what might happen next to prices and new issuance ?
The BDC Fixed Income median price barely changed for the week, but there was a shift among issues trading below par. Otherwise, new issue activity remained high and more is promised. It’s been a busy month for BDC unsecured debt and for the Reporter.
BDC Fixed Income prices didn’t change much on the week, but the capital markets for new unsecured debt issuance were very busy and the BDC Fixed Income landscape is rapidly changing.
Gladstone Capital issues a new Baby Bond. The BDC Reporter compares the terms with the BDC’s existing debt and with what its peers have achieved of late; analyze the impact on earnings and the leverage ambitions of the external manager. Finally, we consider how the BDC’s shareholders will fare.
While the broad stock market indices moved wildly up and down this last week, BDC Fixed Income prices did not. We discuss what did happen and review the latest developments in this still thriving corner of the Fixed Income market.
BDC Fixed Income prices continue to enjoy an Indian Summer price-wise, but there are very few news developments to discuss. Prices are not expected to change much in the near future but the news flow should.
The BDC Fixed Income market zigged as the risk free rate zagged; a Term Preferred was redeemed and we discuss who will be next and how all that capital going out the door might return later.
As promised for months, Gladstone Capital has called in its Term Preferred. We review the details; the source of funds; the impact on the balance sheet and P&L and project what might happen next as the BDC has big ambitions to “leverage up”.
Gladstone Capital closes out its fiscal year with a set-back, discussed at length – along with many other issues – in its Conference Call, to which we’ve added the BDC Reporter’s notes and comments.
A major portfolio company of Gladstone Capital unexpectedly stumbles.
Nine BDCs have reported earnings through the close on August 2, 2018. We’ve got the highlights, the lowlights and an early idea of where the BDC sector is headed.