The major indices all moved up on Wednesday but the BDC sector slipped for reasons unclear. Besides Ares Capital, the two PennantPark BDCs reported strong results and a dividend increase to boot.
All the markets, including the BDC sector, bounced back after two days of red ink. In the news, we discuss two BDCs dividend announcements and continue to review the merger of the two SLR BDCs.
Another up day for BDC stock prices, and for most of the indices. News-wise, a venture debt BDC recaps the quarter’s activity; an unchanged distribution is announced and yet another player returns to the unsecured debt issuance well on favorable terms.
The BDC sector was barely impacted by the “carnage” in the broader markets on Monday. On the news front, a very large BDC raised new debt on attractive terms and a smaller BDC maintained a long standing record of unchanged distributions.
BDC investors are an indecisive bunch, pushing up prices sharply after last week’s decline. We discuss the principal winners on the day. Also on the docket: a new CFO for two BDCs and the post-facto capital structure at Great Elm Capital after a Baby Bond offering.
Corrected: PennantPark Floating Rate issues new unsecured notes. The BDC Reporter analyzes the pro-forma impact on the balance sheet and earnings.
A portfolio company of PennantPark Floating Rate Capital files for Chapter 11, shortly after the BDC placed its debt on non accrual.
The BDC Reporter annotates the PennantPark Floating Rate IQ 2020 Conference Call transcript, helped by reference to the just published earnings release, 10-Q and Investor Presentation.
The BDC sector dropped back again last week after a head fake the week before. We review the numbers and evaluate what we’ve been learning from the BDCs themselves all week and what remains unknown.