Author: Nicholas Marshi

Shortly after agreeing on a sale of its management contracts to Oaktree Capital, Fifth Street Asset Management has caused Fifth Street Senior Floating to issue a preliminary Proxy to get shareholder approval. The BDC News Of The Day has read the Proxy and brings readers the key details (including a few new facts not previously disclosed) and analyzes – where possible – what the impact might be on the BDC going forward. However, much remains unknown and unknowable…

The BDC Reporter recaps what’s been happening to BDC common stocks in the week, mentioning two obvious names and one which is not. We also review the latest trends in BDC Baby Bonds and offer up a (downbeat) projection for what might happen to prices for the next many months. We end by tying together what these two markets are telling us about investors sentiment right now.

Finally. Fifth Street Asset Management has sold off its Investment Advisory contracts in Fifth Street Finance and Fifth Street Senior Floating to Oaktree Capital. We review the press release and SEC disclosure; point out what’s good and what might not be so good for the shareholders of the two BDCs involved and disclose our own investment approach following the Big Reveal.

Yesterday, the BDC News Of The Day provided an advance preview of the key issues facing Saratoga Investment in advance of its earnings release. Now the numbers are out and the BDC Reporter has updated our article with what we’ve found out and why the stock price might be dropping.

Saratoga Investment is about to report first fiscal quarter earnings and hold a Conference Call. The BDC Reporter suggests 4 items shareholders should be keeping an eye on that could affect the stock in the short term or long term.

Golub Capital and Edward Altman publish their quarterly Index of middle market sales and “earnings”. We note the key data points and claims by the Index publishers and analyze the methodology to determine what this does – or does not – tell BDC investors.

BDC News Of The Day delves into Fifth Street Asset Management’s restated Loan Agreement with its lending group, and assesses the implications for all the Fifth Street entities involved directly and indirectly, including Fifth Street Finance and Fifth Street Senior Floating.

We recap what’s happening (or not) in the market for BDC common stocks and Baby Bonds. Regarding the latter, the BDC Reporter spends more time than usual discussing some features of the market which may not be immediately obvious.

Fifth Street Asset Management has made a sale, but not the one the market is waiting for. We provide the details, then analyze the asset manager’s financial condition and give our view as to why FSAM has to close a deal with Oaktree. We speculate about how and why that may not happen, and the risks involved for the shareholders of 3 public companies.