The BDC Reporter takes a “deep dive” into Fifth Street Finance’s financial performance and outlook to determine if the recent run-up in the stock price on the back of Oaktree Capital’s impending arrival as Investment Advisor is justified by the fundamentals.
BDC News Of The Day breaks with its regular procedures and provides details about two upcoming earnings releases: Fifth Street Finance and Fifth Street Senior Floating Rate. We explain why investors may want to mark the event in their calendars.
BDC Exposure: $37mn.
Fifth Street Finance and Fifth Street Senior Floating Rate have both received waivers and amendments from their lenders as part of the transition to a new Investment Advisor and a revised strategy and business model under Oaktree Capital. We discuss the details and discuss how to invest in this fast evolving situation.
Medallion Financial and the lender to one of its subsidiaries come to terms, as we’d been watching for. The BDC Reporter places the resulting 8-K filing in the bigger context of the re-making of the medallion lending industry.
The BDC Reporter is skeptical that the increase in Fifth Street Senior Floating Rate’s stock price is sustainable, despite a big run-up in recent days and an apparent long way to go before getting back to book. We give 5 reasons why we doubt that the BDC’s stock price can remain at the current level for too much longer.
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.
BDC portfolio company in the education field makes an acquisition. We discuss which BDC is involved
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.
FS Investment has failed for a second time to get enough shareholder votes. The BDC News Of The Day discusses what will happen next and offers up two very different potential outcomes in the weeks ahead.
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.
Triple Point Venture Growth has announced the projected refinancing of its existing Baby Bond with a new issue coming shortly. BDC News Of The Day offers the details known; analyzes the impact on shareholders and Note Holders alike and discusses the Baby Bond redemption risk more generally.
BDC News Of The Day reviews an unusual loan assignment by Hercules Capital, and the impact on the investment valuation.
On July 6 2017 TICC Capital held its annual Shareholders Meeting at which three issues were put to a vote. On July 7, 2017 TICC reported the results, which we discuss below. We were surprised by one outcome relating to the issue of selling stock below NAV. The BDC Reporter gives its view as to one course of action the Investment Advisor might take which some shareholders would not approve of and might mightily move the stock price:
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.
The BDC Reporter looks forward at how some coming news stories could move the needle for several different BDCs and in different ways.
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.