Week 22 of the BDC Market Recap, and a relatively uneventful period. Common stocks are in a holding pattern as a group. Still, we mention one high flier and one low flier. The Baby Bond universe is growing – if only for awhile – but price conditions were marginally lower.
The BDC Reporter adds a second article in a series dedicated to assessing whether a BDC’s current distribution level is sustainable for the next 12 months. We using ratings of Likely, Possible or Unlikely. Last week, we thought Garrison Capital’s dividend Unlikely to be continue unchanged. This week we turn to MVC Capital, which has paid 48 consecutive quarterly distributions, following our in-depth review of its latest 10-Q which we undertook for our Premium subscribers. This article and series is made available to all the readers of the BDC Reporter.
Two new developments at Medallion Financial, and both hidden in the SEC filings. BDC News Of The Day highlights both, but does not draw any great conclusions.
Monroe Capital prices its new common stock offering. BDC News Of The Day reviews key details and answers the question: What will happen to EPS and the distribution in the short and medium term ? Will the capital raise be accretive ?
In-The-News MVC Capital released quarterly earnings. We looked at the normal metrics and then delved into the 30 company portfolio for a better understanding of income, risk and asset value and whether MVC can remake itself. We came away not encouraged after a first review of the 10-Q.
Monroe Capital to issue new shares in a secondary. The BDC Reporter reports on a three month prediction and uses the opportunity to discuss front running BDC actions like this one.
A Medallion Financial insider files a Form 4 again, for the second day in a row. The BDC Reporter brings the details and a brief tea leaf reading.
BlackRock Capital issues its first public Convertible after years in the dog house. The BDC News Of The Day reviews the terms,and spells out the impact on the BDC’s earnings in the short term and the balance sheet outlook medium term. We also provide our own analysis about the creditworthiness of the Convertible Notes through a hypothetical financial crisis. We’re not as bullish as the rating agencies….
Medallion Financial is back in the news intra-day with a big insider purchase with a value over $100,000 from a Director. The BDC Reporter discusses the details and the recent purchase history and stock movement.
Golub Capital is selling equity (again) for two specific purposes. The BDC Reporter discusses the details of the offering and what the trends in earnings and credit look like at this highly popular BDC trading at a big premium to book value.
BDC portfolio company PR Wireless placed on CreditWatch by S&P. The BDC Credit Reporter evaluates the situation and the credit risks to the two BDCs with debt and equity exposure to this under-performing wireless carrier.
BDC portfolio company Ignite Restaurant Group files for bankruptcy. Three BDCs have exposure, including Golub Capital. We assess likely damage.
BDC Portfolio company Outcome Health raises half a billion dollars. Five BDCs have debt exposure.
A portfolio company of Alcentra Capital sells a business line.
BlackRock Capital amends its Revolver. The BDC Reporter uses the opportunity to review the credit agreement and discusses dull-as-dishwater issues such as liability management and portfolio valuation for readers interested in what might prove important in the Next Crisis.
The BDC Reporter -aided by research undertaken by the BDC Credit Reporter – updates its view of whether the current dividend of Garrison Capital is sustainable following the bankruptcy of a portfolio company.
Pennant Park Floating Rate announces an unchanged monthly dividend. The BDC Reporter looks ahead to what a recently announced new Joint Venture with Kemper might mean in the short term and long term for one of the most stable pay-outs in the sector. Yup, one of those “Good News/Bad News” stories.
PennantPark Investment declares its second, lower distribution in a row. The BDC Reporter focuses a very specific spotlight on what could go wrong at the BDC and bring about a second distribution cut and drop in price. We name names.
Gladstone Investment files another amendment to its $300mn Shelf Offering. There’s no “new” news to report but the BDC Reporter does have a warning for holders of the currently high flying BDC’s publicly traded Preferred issue with the ticker GAINO.
BDC common stocks as a group are going nowhere but there were two exceptions to the rule. Baby Bonds remain uniformly valued at premiums to par, ith the one exception moving back up.