The BDC sector dropped back again last week after a head fake the week before. We review the numbers and evaluate what we’ve been learning from the BDCs themselves all week and what remains unknown.
The BDC Reporter begins with the latest 8-K from Bain Capital Specialty Finance about an aspect of its financing to review what we know and can surmise about its liquidity, and its future prospects. The challenges the huge BDC faces are not unique and are instructive for anybody involved in the sector at this difficult time.
In a surprise move, a second BDC – Golub Capital – announces its intention to undertake a rights offering. We do our best to describe how the offering will work; the capital that might be raised and the likely impact on shareholders. We use the opportunity to quickly review some of the other alternatives BDCs have at hand to raise capital in a hurry.
The BDC Reporter has a look into the latest amendment to Ares Capital’s secured Revolver to learn what we can about how the debt is structured at this critical time for BDC liquidity. We learn a great deal about how the BDC borrows from its bankers but some key details are missing.
Bain Capital Specialty Finance – one of the most leveraged public BDCs -is preparing to undertake a Rights Offering – a capital raising technique not used since the Great Recession. We share the few details available before the market open and discuss the potential implications for the BDC, its shareholders and for the BDC sector generally. All written in a hurry before the open, so treat with caution.
After a record week for BDC Fixed Income price drops, a reversal. We bring readers up to date on the ever changing numbers. Plus, we look ahead to what might happen under different scenarios, including the previously unthinkable.
The BDC sector reaches new lows not seen in over ten years but bounces part of the way back. Is the worse over ? The BDC Reporter argues that we’ve only just begun, and explains why.
Fitch is beginning to reconsider the credit ratings of Business Development Companies, starting with BlackRock Capital. The BDC Reporter annotates the rating group’s comments and provides some sector-wide thoughts about what the future might hold.
Main Street Capital increases the size of its Revolver. The BDC’s future, though, is completely up in the air, as the BDC Reporter calculates what key numbers might look like for the BDC at the end of the first quarter of 2020.
After the worst week on record – by far – for BDC Fixed Income prices, we ask why and what might come next ?
The BDC Reporter describes the terrible, horrible, no good week just passed for the BDC sector, but cannot offer much in the way of immediate hope that we are at a turning point yet. As best we can, we look ahead as the extent of the damage to expect comes – very slowly – into focus. There are elegant solutions available here but will either the Federal government or Wall Street be up to the challenge.
What starts out as the BDC Reporter’s estimate of what might happen to Apollo Investment’s book value at the end of the IQ 2020 morphs into ideas about who might be able to save the BDC sector from the dire consequences of the current crisis, and how. A rare instance of the BDC Reporter getting on a soap box, albeit with the best of intentions.
The BDC Reporter re-publishes and annotates an important article in the financial press about an aspect of BDC liquidity in the coronavirus-era.
Great Elm Corporation announced 2019 results and its quarterly dividend. The latter, though, will no longer be paid out 100% in cash… We review the details; the reasons why and the possible consequences for the BDC’s stakeholders and the sector as a whole.
The BDC Reporter analyzes a just-released Main Street Capital press release and seeks to provide some analysis and context about what the BDC is up to in these trying times for lenders and borrowers.
With all markets in uproar – and the BDC sector down by a fifth in two days – we seek to take a fresh look at where the BDC sector stands and where we’re headed in the age of the coronavirus.
The BDC Reporter updates BDC Fixed Income prices after a week of huge – and uncharacteristic moves. We also look ahead to a week where more of the same seems to be in the cards.
The BDC Reporter sums up another remarkable week for BDC sector prices and looks forward at a time of maximum uncertainty.
The BDC Reporter annotates the just published Garrison Capital IVQ 2019 Conference Call transcript.
The BDC Reporter – using the resources of Advantage Data and its own research – analyzes BDC exposure to a segment of the oil & gas industry. Second in a series.