What is happening to BDC common stocks and Baby Bond prices and trends ? We undertake our Weekly Recap. Regular readers will not be surprised, but we through the exercise anyway.
Medley Capital issues 8-K filing regarding the sudden departure and immediate replacement of an independent Director, which occurred several days previously. The BDC Reporter provides what facts are known and offers up alternative conclusions to the BDC’s shareholders.
On a slow day, BDC News Of The Day reviews insider purchases and sales at 4 different BDCs. Then we segue into a non-sequitur about BDC distribution cuts. Mr Market seems to be counting on a third of BDCs to cut their pay-outs before long. The BDC Reporter’s list is even longer. We offer to share our names with any subscriber wanting confirmation or beginning to sweat.
Apollo Investment present at a financial services conference to discuss their new strategy. The BDC Reporter uses the numbers in the slide show to point out that the math does not work without a couple of drastic changes by the BDC’s Investment Advisor.
Moody’s changes its credit outlook for Ares Capital, pointing to improved portfolio composition and better asset coverage. The BDC Reporter may admire what is now the biggest BDC, but takes issue with the methodology that Moody’s and others take when evaluating credit risk. Like so much else in life, things are much more complicated than they seem.
BDC Exposure: $32.7mn
Capitala Finance amends its Revolver. We discuss the details and look at the risks and opportunities of borrowing under a Revolver from a bank group and where Capitala stands in this regard.
BDC News Of The Day faces slim pickings from which to read and report. Here are a handful of items which may be worth knowing about.
The BDC Reporter begins an in-depth review of the latest BDC to arrive in the public markets, sponsored by the Carlyle Group.
Why would Fidus Investment raise new equity capital so soon after the last raise and with no obvious need for the capital ? The BDC Reporter explains why.
The BDC Credit Reporter brings shareholders of MVC Capital and Equus Total Return up to date on the proceeds received from one of their portfolio companies, a biomass producer which has just been liquidated. The news is good for the BDCs involved.
BDC News Of The Day reviews the routine Proxy solicitations of Apollo Investment and Gladstone Investment. One of the two is requesting – and is likely to receive – permission to sell shares below NAV.
Capital Southwest – new to being a lending focused BDC- is still refining its strategy and corporate status. Both are discussed in the final Proxy materials reviewed by the BDC Reporter.
Our Weekly Recap – and reason enough to be a Subscriber – reviews where BDC common stocks and Baby Bonds have trended. We mention a few Winners and Losers by name and discuss the sector’s extraordinary volatility, which is both blessing and curse for investors in what some might believe (incorrectly) is a sleepy corner of the financial services industry.
Avanti Communications, which has been frequently discussed in the past, has just arranged a new financing. The BDC Credit Reporter, which looks into such things, has reviewed the available information and made some on-the-fly credit assessments that will affect the positions held by TCP Capital and Great Elm Corporation.
BDC News Of The Day mentions miscellaneous news items from MVC Capital, Fidus Investment, Medley Capital and Medallion Financial.
The BDC Reporter re-publishes an article by LevFin Insights as part of our Other Views series. The financials news platform brings readers news of a new BDC to track from a hallowed name.
TICC Capital has received “exemptive relief” from the SEC to co-invest with sister funds. BDC Reporter discusses the implications for the BDC’s shareholders, but also provides a bigger picture summary of what this type of waiver of shareholder protections means for good or ill for all BDC shareholders. A dull but important subject with many long term implications.
Ares Capital is filing a routine Shelf Offering. We provide the few details available and follow-up with a wild surmise.
An insider has been active at Monroe Capital. BDC News Of The Day provides the details and the total holdings involved, culled from the Form 4 filing.