The BDC Credit Reporter alerts its readers to new developments at one of Golub Capital’s (GBDC) under-performing portfolio investments: Avatar Solutions. For the full details, click on our easy to use new file format at the end of the article.
The BDC Credit Reporter has an in-depth look at one of the under-performing companies mentioned on BlackRock Capital’s (BKCC) recent Conference Call and uses the opportunity to highlight the information gathered-and our conclusions-in a new “Company File” format which we hope to make standard in the future. Feed-back from readers is requested in the new Comments section.
The BDC Credit Reporter provides detailed information (thanks to our partnership with Advantage Data) in tabular form about cross holdings of under-performing companies in BlackRock Capital’s (BKCC) just announced IQ 2016 portfolio that are also held by other BDCs and might be subject to write-downs when they report their results.
The BDC Credit Reporter discussed the credit problems at BlackRock Capital (BKCC) after the release of its quarterly filing but before the ensuing Conference Call. After listening to the management and spending more time with the data, we make some additional comments about BKCC’s under-performing AND performing investments, and discuss the likely way forward.
As a heads up, the BDC Credit Reporter points out to FS Investment (FSIC) and KCAP Financial (KCAP) shareholders that BlackRock Capital’s write-down of Advanced Lighting Technologies might be repeated in their portfolios once results are filed for the quarter, given that they all have similar exposure to the company.
The BDC Credit Reporter provides a brief update on the poor credit performance at BlackRock Capital (BKCC) in the first quarter of this year, after a similarly disappointing fourth quarter of 2016. In a very short period the investment portfolio has gone from hero to zero. We provide details and updates. More to come after the Conference Call.
A brief update on the BDC Credit Reporter article on April 26, 2016 regarding TPG Specialty’s (TSLX) loan to failed retailer Sports Authority, made just before the borrower filed for Chapter 11. We received some additional info from a reader that we are passing along.
The BDC Credit Reporter adds another sad story about Retail Gone Wrong. Unfortunately, Sports Authority-already in Chapter 11-has given up trying to emerge therefrom and is heading for liquidation. Thousands of employees will lose their jobs and $1.1bn in debt is in question. 4 BDCs have exposure to the Company. However, the BDC with the greatest to lose is TPG Specialty (TSLX)…
April 26, 2016: ACSF
The BDC Credit Reporter updates readers on the questionable state of another troubled retailer-Charlotte Russe-and details Business Development Company exposure to the company. We review recent downgrades by S&P and Moody’s and provide our own perspective on what might happen next, and the potential impact on the income and equity of the BDC lenders involved.
The BDC Activist has opined in the past about the SEC’s green light to many managers of multiple funds to populate their portfolios with loans from the same borrower. Fifth Street Asset Management (FSAM) has just announced another transaction shared between its two public BDCs. The BDC Activist does not approve in principle, and explains why.
Our first Guest Contributor-and CEO of Saratoga Investment (SAR)-Chris Oberbeck provides useful advice to Millennials about getting started in Business Development Company investing. You can also follow Chris on his own regular blog and on Twitter.
The BDC Credit Reporter notes that there is a “depression” underway in U.S. rail freight brought on by oversupply of coal on the tracks and in storage, and with the long term trend towards ever lower volumes, the sector needs paying attention to. We add rail freight to our Sector Watch List.
The BDC Credit Reporter is concerned about the knock-on effect of the brewing crisis in Puerto Rico on Business Development Companies with exposure to companies operating there. We sum up what we know about which BDCs have made investments in debt and equity in that troubled isle.
The Fifth Street Senior Floating Rate(FSFR) election, where shareholders had the chance to vote in dissident Board members and even kick out the existing manager, has ended in a draw. The BDC Activist brings readers up to date, and underscores why this was a historic occasion, even if the immediate outcome remains unclear.
The BDC Credit Reporter has a look at BDC behemoth, and popular favorite, Ares Capital (ARCC) after a big Unrealized write-down in the IVQ of 2015. First signs of the Apocalypse or meaningless blip or something in between ? Management is sanguine. We are ambivalent as we show with plenty of facts and figures.
April 10, 2016: Review BDC exposure to Retail Sector.
Fidus Investment (FDUS) has issued its annual Proxy and asked shareholders-as usual-to approve the ability to issue new stock below Net Asset Value, if deemed appropriate by the Powers-That-Be. The BDC Activist cheers the Company’s long term performance but questions whether shareholders and manager are on the same page…