Capital Southwest announces a regular and a special distribution for the second quarter and provides an opportunity for the BDC Reporter to discuss the complexities of estimating BDC distributions.
We use the example of BDC portfolio company California Pizza Kitchen to discuss the broader subject of restructured investments and the challenge posed to investors by the uncertainty and time frames involved.
We undertake a deep dive into Capital Southwest’s investment portfolio, with a focus both on the underperformers and the upside opportunities to realistically assess what net book value will look like over time.
The markets were in the black on Tuesday and the BDC rally continued. There were multiple news items, including an increased dividend and new senior managers at a large cap BDC plus positive credit developments at Capital Southwest.
For a second day, the markets were all over the place but the BDC sector moved up in price. We discuss how BDCs have performed so far in this mini-crisis. Otherwise, we learn more about a new portfolio company at Horizon Capital and a troubled borrower causing worries for two public BDCs.
BDC sector prices increased even as most of the major indices faltered. Also, we highlight some interesting conversations and data generated by Saratoga; note Ares Capital’s latest trip to the capital markets and Capital Southwest’s most recent portfolio investment in what was a busy day.
The major indices rolled onward and upward, but the BDC sector lagged on the first day of the month. A mid-sized BDC dropped sharply in price in advance of earnings that turned out to be pretty good and another player announced a special payout for IQ 2022 already.
All the major indices were in the red on Wednesday, but the BDC sector held up better than might have been expected. News was limited to the basic details of a new transaction financed by an ever busy mid-sized BDC. We dig a little deeper and provide more background details.
September began very slowly where BDC prices were concerned, and there was no news to report. On the credit front, though, we learned more about how the bankruptcy of Sequential Brands might play out. That’s important to two large BDCs.
The BDC Reporter undertakes a full fledged credit review of Capital Southwest as of the IIQ 2021. We both look back on how credit conditions have changed since the pandemic, and look forward as well.
The rally in everything – including BDC prices – marches on. Also, two BDCs report results, including NAV Per Share trends headed in different directions and another unsecured debt offering gets closed.
The major indices break new records and the BDC sector is not far behind. We also review a new unsecured debt offering by a mid-sized BDC getting underway and have a look at the high level of deal doing underway in the market.