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…
A leading institutional corporate governance advisory organization has come out in favor of the proposals advanced by “activist” Ironsides Partners in the upcoming shareholder vote at Fifth Street Senior Floating Rate. We provide details and analysis. However the BDC Activist remains uncertain what outcome will best favor FSFR’s shareholders. CORRECTED VERSION.
With a shareholder vote coming in April, BDC Activist revisits the challenge of Fifth Street Senior Floating Rate by Ironsides Partners, who seek to appoint 2 directors to the Board, fire the External Manager & sell the BDC to improve the stock price from the current huge discount to book. New dawn for BDC activism or dead-end ?
The BDC Credit Reporter takes a quick look at Monroe Capital’s credit performance and investment portfolio at year end 2015. There is much to cheer about, but we also point out incipient risks that might affect future underwriting performance.
While continuing the BDC Credit Reporter’s compilation of all potential under-performing investments in the BDC universe, we turned to Garrison Capital (GARS). While drilling (pun intended) into the company’s portfolio, we added a few names to our Watch List, including one which just announced big news. Read on for all the details.
We continue to develop the BDC Credit Reporter by building a database of every investment at every BDC. In the interim, we offer up some highlights and low lights from our credit research into mid-market BDC Capitala Finance (CPTA), which has managed to both be very successful and make many credit mistakes in recent quarters.
BDC Reporter takes a look at what’s happening at OHA Investment (OHAI) following the publishing of the latest 10-K. We pose the rhetorical question of what is the end game here and return with the answer: nothing to look forward to whatever happens. A bleak but necessary look at one of the smallest BDCs.
The BDC Credit Reporter has a quick look at Harvest Capital Credit Corporation’s (HCAP) latest portfolio list, and identifies a short list of potentially troubled investments. However, the Company’s own rating system involves a greater number of companies and dollars at risk.
A representative of Skopos Financial-whom we mentioned in an article yesterday concerning Stellus Capital Investment’s (SCM) BDC Credit Reporter Watch List-questioned elements of our discussion of the sub-prime auto lender. We pass on their rebuttal, but keep Skopos Financial on SCM’s Watch List.
The BDC Credit Reporter reviews a BDC’s portfolio periodically and identifies investments that are or may drop in value for its Watch List. We begin with an analysis of Stellus Investment Corporation (SCM) and its Watch List names. The trend here is not the investor’s friend, but everyone may have a different take on the data compiled.
The BDC Reporter has a look at the recently announced new fee agreement between Apollo Investment (AINV) and its External Manager (Apollo Global management) and the proposed new stock buy-back initiative. Although the stock price is flying on the news, the BDC Activist is unmoved…
In Part II of our potential new series “Under The Hood”, where we dive into the 10-K of a BDC to highlight key items of interest to investors, we look at the principal terms of Stellus Capital Investment’s advisory agreement with its External Manager and the conflicts of interest revealed in the filing.
The BDC Reporter goes under the hood of Stellus Capital Investment’s (SCM) 10-K, in the first of a two part article, to highlight key issues important to investors. Part I looks at the investment’s performance, the company’s financial results, the use of leverage & the availability of equity & SBIC capital. Part Two will tackle how the manager is paid and conflicts of interest..
Review of Stellus Capital Management (SCM)