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.
We republish an article from the BDC Credit Reporter about the seventh BDC-financed company to file for bankruptcy in June. Two public BDCs are affected and will be booking significant realized losses shortly.
Read the transcript or listen to the recording of the Active Investment Company Alliance webinar about IQ 29020 BDC earnings season, including the contribution to the dialogue by the BDC Reporter. Recorded June 11.
The BDC Reporter welcomes the most recent addition to the public BDC sector : FS KKR Capital II. We discuss how the BDC just switched from non-listed to listed and review the history; balance sheet; dividend and credit quality of the new player. We also place this expansion of the size of the public BDC sector in a broader context and ask some hard questions.
A fifth BDC-financed company files for bankruptcy court protection. We re-publish an article from the BDC Credit Reporter but first discuss what we’ve been learning of late about which sort of companies are most likely to be bankrupted. Not what lenders had expected.
The BDC Reporter analyzes the impact of Bain Capital Specialty Finance’s Rights Offering on its NAV Per Share, liquidity, leverage, earnings and dividend going forward.
While BDC common stocks and the markets fluctuated widely this week, BDC Fixed Income’s movements were less spectacular. In terms of news, we focus on MVC Capital’s latest results and the implications for its Baby Bond holders.
“What goes up will come down” as BDC sector prices proved this week as volatility resumed. Also there were other notable developments including equity capital raised; a surprise dividend and important shareholder approvals. We also discuss the surprising change the size of the BDC sector is likely to take in the days and months ahead.
This is nominally an article about an underperforming Great Elm portfolio company, but mostly a dissertation on how BDC credit defaults might divide into three distinct waves in the months ahead. Here we mostly review the “second wave” but keep an eye out for what might be following behind.
The BDC Reporter will be a featured speaker on a panel when the Active Investment Company Alliance reviews IQ 2020 BDC earnings results on Thursday at 2:00 p.m EST. We provide all the details for this free event and a link to the registration form for anyone interested.
We re-publish an article from the BDC Credit Reporter about an Ares Capital company that has just filed Chapter 11. However, we also use the opportunity to review BDC exposure to the energy sector in 2020. The numbers may surprise some readers.