Part II of our Big Picture series where we seek to draw out what the biggest threat is to the BDC Sector. In Part I, we began by describing the flood of new capital that has arrived in leveraged lending and is competing with BDCs. In Part II, we wax on about the knock-on effect of this new money, which is eerily reminiscent to a BDC Reporter who’s been through a few credit cycles.
A gaming company that 7 BDCs have exposure to is getting refinanced. The BDC Reporter offers up some details and a couple of observations.
BDC News Of The Day provides an update on yet another insider stock purchase at beleaguered Medallion Financial, discloses what we are doing as an investor and our ambivalence.
One of the most unusual stock buying arrangements the BDC Reporter has seen has just been extended and doubled in size. A special purpose vehicle set up by a subsidiary of Medley Management and investors of Fortress Capital are buying Medley Capital’s shares and intend to buy many more. The BDC News Of The Day updates the latest development and explains the complex but ingenious scheme. Shareholders of the BDC may cheer now, but may not later.
OHA Investment’s stock price is at a new milestone. We briefly discuss why and provide some background on a BDC situation we’ve been tracking for months. Or is it years ?
A special purpose vehicle called Medley Seed Funding I continues to buy ever more shares of Medley Capital. The BDC Reporter updates the latest numbers and spells out 3 ways both Medley Capital and Medley Capital Management’s stock price might be majorly affected.
KCAP Financial has filed a Shelf Offering and registered managers stock. The BDC News Of The Day speculates on how the internally managed BDC might seek to solve its long standing financial difficulties that include constant drop in NAV, lower distributions and very tight asset coverage. The time may be nigh or not, but readers will be updated on the key issues to consider.
In BDC Daily News, the BDC Reporter looks into the latest TICC Capital Preliminary Proxy to understand why 2 directors just resigned and what the Investment Advisor’s plans for the future might be if shareholders go along. We surmise that the Advisor may harbor some growth ambitions and shareholders are likely to say Yea. We can hear the “activist” shareholders who challenged the Investment Advisor grinding their teeth…
Newtek Business Services has filed a Preliminary Proxy with just one issue for shareholders to consider and vote on. The BDC Reporter expects the proposal to pass, but never be called upon.
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.