Following on the heels of the BDC Reporter’s annotation of Gladstone Capital’s latest earnings conference call, we’ve undertaken a full fledged credit review of this lower middle market focused BDC.
Gladstone Capital – in management’s own words – had a “solid quarter”. The BDC Reporter annotates the BDC’s latest conference call transcript and provides more “color” about recent performance and the prospect of higher earnings and distributions ahead.
Here are the key findings from the BDC Reporter’s review of Gladstone Capital’s latest conference call. All is good from an earnings and dividend standpoint – and could get better. Management, though, touches on what might go wrong…
BDC sector prices break out to a new 52 week high as a rally gains steam. Plus, two BDCs announce distributions and two others divulge new investments and a troubled company gets acquired.
BDC prices continue to rally for a fourth day but remain below record breaking levels. We assess where we stand. Also, a midsized BDC adds a new investment and another seeks “routine” shareholder approval to sell shares at a discount if need be.
BDC prices inched a little higher. In terms of news, there were two encouraging earnings reports; another BDC raised new equity and a new Baby Bond made its official debut. We also added two new BDCs to our coverage.
The major indices were all up in price on Thursday. So was the BDC sector, ending up just below record levels. Plus, two new BDCs reported earnings, another raised 10 year unsecured debt and another for 5 years while a third player quietly launched a new joint venture. Busy days.
Whereas the major indices dropped, the BDC sector increased in price on Tuesday. Also, two BDCs announced distributions: one increased and one unchanged, and a large cap player pays off expensive debt.
The major indices suffer a major one day hit on Tuesday, but the BDC sector is less impacted. Also, two important developments occur where BDC unsecured debt is concerned, both coming and going.
We annotate Gladstone Capital’s calendar IVQ 2020 conference call transcript, armed with our review of the latest 10-Q.