The BDC Reporter undertakes a deep dive into the credit status of Monroe Capital at June 30, 2021.
The indices mostly dropped modestly on Thursday, but the BDC sector was somewhat worse. There was no news to review, but we made progress dissecting a mid-sized BDC’s credit performance status.
BDC sector prices moved in a surprising direction given the across the board drop in the major indices. Also, we review a dividend announcement and identify potentially very good news at a troubled portfolio company of a mid-sized BDC.
Monroe Capital makes the case for 2021 being better than last year on in its IVQ 2020 conference call. Here are highlights and the BDC Reporter’s views.
The famous restaurant chain is the ninth BDC-financed company to file for bankruptcy in July and there are multiple BDCs involved in both the first and second lien debt. Re-published from the BDC Credit Reporter.
An oil services company financed by three public BDCs unexpectedly files Chapter 11. We re-publish an article from the BDC Reporter and review which BDCs are involved and for how much.
Nominally, this is a re-published BDC Credit Reporter about a drop in the value of bankrupt portfolio company Bluestem Brands, in which three public BDCs are involved. It’s actually an opportunity for the BDC Reporter to discuss a worrisome trend: a decline in recoveries on troubled investments. The implications for the BDC sector could run into the billions of dollars.
For a second week BDC common stock prices rally along with the broader indices. However, there’s a very long way for prices to go before returning to pre-Covid levels and multiple challenges ahead.
A portfolio company of Monroe Capital unexpectedly files for bankruptcy protection.