We re-publish an article from the BDC Credit Reporter about positive developments at a portfolio company of Investcorp Credit Management. We use the opportunity to provide an overview of our estimate of the BDC’s underperforming assets and the large exposure to the energy sector.
BDC Fixed Income prices continue their long march back towards par level. Nonetheless, doubts remain for a significant number of issuers as the market prepares for the publication of IIQ 2020’s results.
BDC common stock prices reversed course for the first time in 4 weeks and moved up. However, results remain mixed and the future unclear. The BDC Reporter suggests some items we might want to look out for in the weeks ahead that might make a difference.
As expected a Bain Capital Specialty Finance portfolio company in the restaurant field has filed for Chapter 11. The damage to the BDC will be minimal but there are still lessons to be learned from this setback.
Stellus Capital reduces its dividend but a host of uncertainties remain about the BDC’s liquidity, credit and the form of future payouts.
An Oaktree Specialty Lending-financed company files for bankruptcy protection. We re-publish a BDC Credit Reporter article on the subject while placing the investment in the broader context of the BDC’s investment strategy. Update: Added Oaktree Strategic Income as a BDC-lender as well.
Capitala Finance abandons trying to mend relations with its Revolver lenders and closes the facility. We review where that leaves the BDC’s financing, liquidity and future.
We re-publish a BDC Credit Reporter update about a portfolio company with exposure from three public BDCs which has just been downgraded by Moody’s. The amounts of capital and income involved are material and worth being aware of.
BDC Fixed Income prices zigged when common stock prices zagged this week. We explain how but can’t help sharing our doubts with readers about a quarter of the public BDC universe and what that might mean for their debt prices down the road.
A third week of dropping BDC sector prices as market confidence falters. We review the three biggest losers and one of the few weekly winners and also discuss an update from New Mountain Finance and a buyback at THL Credit. We end with the inevitable review of BDC credit trends.
Horizon Technology Finance arranges a fourth financing facility which should boost liquidity and underwrite further portfolio growth. We discuss the background; the details; the benefits and the risks.
Nominally, this is a re-published BDC Credit Reporter about a drop in the value of bankrupt portfolio company Bluestem Brands, in which three public BDCs are involved. It’s actually an opportunity for the BDC Reporter to discuss a worrisome trend: a decline in recoveries on troubled investments. The implications for the BDC sector could run into the billions of dollars.
In a surprise development, Portman Ridge Financial and Garrison Capital announce plans to merge. The BDC Reporter analyzes what the two BDCs bring to one another and muses about the implications for the BDC sector in the quarters ahead.
Another Harvest Capital portfolio company has gotten into trouble and filed for Chapter 11. Using BDC Credit Reporter data, we update the number and value of underperforming and non performing companies at the BDC. We also review where the BDC sector stands in terms of new portfolio company bankruptcy filings.
We re-publish a BDC Credit Reporter about yet another BDC portfolio company bankruptcy. First, though, we pen a bromide about the “fair market” valuation system and how investors can be misled by the methodology employed.
The median price of the BDC Fixed Income issues we track dropped for a second week in a row. Nonetheless, other data suggests the public BDC debt sector is headed for expansion and higher prices.
BDC sector prices offer mixed messages even as the S&P ekes out a win. We also discuss a disconcerting increase in bankruptcies and the newest public BDC.
We’re experimenting with bringing the BDC News Feed from Twitter directly onto the BDC Reporter’s website. This format allows us to offer more commentary and analysis per post and an easy to follow and read flow of all BDC news in reverse chronological order.
The biggest BDC-financed company bankruptcy of the year – and the 8th this month – happened on June 18. We re-publish a full report from the BDC Credit Reporter, but first discuss how so many BDC lenders have been caught out lending into the flawed energy model. Corrected June 22, 2020: An earlier version of this article included Main Street and HMS Income incorrectly as lenders to the bankrupt company.
Saratoga Investment issues a new publicly traded Baby Bond – first since the current crisis. We analyze the impact on the BDC’s balance sheet; earnings and liquidity as well as what this might mean for BDC debt issuance in the weeks ahead.