"As one of the world’s largest hosting providers, Hostway proudly offers products and solutions that allow business owners, IT Managers, and Webmasters alike to host websites, applications, and dev test environments on a platform customized to fit their unique needs. Hostway delivers 24/7/365 support and cost-effective, secure, multi-tenant and dedicated hosting environments for SMBs and large enterprises. We make it our priority to keep your online assets up and running allowing you to focus on growing your business". From the LinkedIn Profile.
Hostway Corporation is an IT company, owned since 2013 by PE Group LittleJohn & Co. The Company is privately-owned and there is very little credit information available. However, there are 5 BDCs with exposure totaling $48mn, ranging from equity to senior secured debt. Judging from valuation trends the Company went on Watch List status in the IIIQ of 2015 when an equity position was written down by -16%. The valuation trend has been down ever since, with the IIIQ 2016 showing equity valued at zero, Second Lien debt down as much as -28% and First Lien down -20%. We know a new CEO was installed in October 2016, presumably to affect a turnaround in the business.
The Company's debt is current, but the business is Under-Performing. The BDC Credit Reporter has a Corporate Credit Rating of 3. If there were to be a default-which still seems unlikely-there would be material variance between the values of the different types of BDC investment in the Company. THL Credit has the biggest exposure (Second Lien and Equity) with $19mn at cost and $12mn at FMV. We have no new information besides the new CEO's arrival since IIIQ 2016 results were published when value was written down again. So the Credit Trend is Down for the IVQ 2016.