Here is what the BDC Reporter is working on for Wednesday August 23, 2017. There’s not much news to report, but there are several stocks to watch and several articles written for our premium News Of The Day premium service released to all readers now our 30 day embargo has passed.
On August 21, 2017 Harvest Capital (HCAP) issued and priced a new Baby Bond. We provide key details and analyze the impact on the BDC’s income statement and balance sheet. Then the BDC Reporter’s adds some value with its assessment of the risks and opportunities involved with both HCAP’s common stock and unsecured Notes. We conclude with a frank admission of how we are likely to invest going forward. We may surprise you …
MVC Capital’s stock buy-back reviewed.
Busy…
The news for the week begins with an increased distribution from Newtek Business Services. We provide details, and analysis of the newer, idiosyncratic BDC’s dividend history. We follow up with a discussion of dividend policy strategies in the BDC sector and point out some of the trade-offs involved in each approach, and where Newtek sits.
This is our regular BDC Market Recap where the BDC Reporter reviews trends in the sector’s common stocks and bonds. We’ve been writing this update for ages, but for the first time in a long time, the BDC Reporter is getting nervous about BDC common stocks. Very nervous, in fact. Baby Bonds, though, are another story. This an expanded and Must Read BDC Market Recap and one of the benefits of our subscription service.
The BDC Reporter takes a break from dissecting the daily news and takes a look back at the latest BDC earnings season – which is mostly complete bar a few stragglers – and comes up with a few Big Picture observations. We’re not pulling any punches and pointing out a few hard truths which readers may find enlightening or maddening, or both.
We review Medley Capital’s IIQ 2017 results.
The BDC Reporter discusses 3 BDC stocks “on the move” and uses the opportunity to describe our own investment approach and current rationales about each name in turn.
Continuing a recent trend another BDC refinances its existing Baby Bond with…another Baby Bond. But cheaper. Stellus Capital has come to market with a new bond issue. We review the key details and analyze the implications for common stock shareholders and note holders alike.
The BDC News O The Day reviews Great Elm Corporation’s IIQ 2017 results. Besides analyzing the latest data, the BDC Reporter discusses the promise of a new Baby Bond and discusses our past, current and future investment strategy in the BDC’s stock and bonds.
KCAP Financial is re-making itself. After announcing the spin off of most of its assets into a new JV, the BDC is raising new unsecured debt. We review both the details of the new Baby Bonds as well as how this capital fits into the changing picture at this under-performing BDC which has been stuck in the sector’s basement for years. Both common stock and Baby Bond investors will want to take a new look, but definitive answers are hard to come by.
The BDC Credit Reporter notes a development in a long standing lawsuit between two prison telephony operators. BDC exposure to the two companies is in excess of $170mn.
BDC News Of The Day reports on OHA Investment’s latest results and lowest ever stock price after reviewing the earnings release, presentation, Conference Call transcript and 10-Q. Not a pretty picture for any of the parties involved and little apparent investment opportunity, even for investors who like to close their eyes and jump.
A not-very-good week for BDC common stocks as a group, but there does appear to be a rational underpinning which we discuss along with numerous specific names. Things are different in Baby Bonds, but there was a dramatic new development during the week which we touch on.
As promised, the BDC Reporter reviews Apollo Investment’s latest results and explains why we believe the market may be over-valuing the BDC, in the middle of a much vaunted turnaround.
In the middle of a run-of-the-mill BDC earnings season, Capitala Finance trips up on the credit front. We take some time to delve into the Q and the portfolio to identify the problems, the slivers of good news and share our outlook.
A quick look at Alcentra Capital after its IIQ 2017 results. Pretty much what the BDC Reporter expected to happen did so, and we explain how.
The BDC Market Recap sees common stocks zigging and Baby Bonds…not doing much of anything. The BDC Reporter continues its regular review and asks and answers the question: is a drop in BDC securities prices presaged by this week’s results ?
Another BDC – following Triangle Capital discussed in an earlier post -seems fated to cut its distribution in the year ahead. We have a look at Horizon Technology Finance.