The BDC Reporter – in Part II of a multiple part series – reviews the compensation arrangements at the newest BDC: TCG BDC. Many of the terms will be familiar to BDC investors, but there are a couple of twists that both help and hinder shareholders. The BDC Reporter also discusses how compensation and strategy and credit quality intertwine.
WhiteHorse Finance’s stock price has dropped sharply. We explain the reason and speculate as to where the next direction might be.
Gladstone Investment held a Conference Call to encourage shareholders to vote on Proxy proposals. CEO David Gladstone made an argument about why shareholders should approve share issues below NAV. The BDC Reporter had something to say about that…
WhiteHorse Finance is raising new equity, but insiders are selling out a position at the same time. We review the Prospectus, offer up the key details and delineate the principal credit risks and discuss the insiders sale.
Medallion Financial publishes results of its shareholder meeting. Not a close run thing, but the BDC News Of The Day details the outcomes and discusses BDC corporate governance and what matters most.
Continuing a long running story, BDC News Of The Day reports on the latest insider purchases at Medley Capital, as well as provide readers new to the stock accumulation with useful links.
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.