BDC common stock prices broke records during their surge in the week ended Thursday April 9. The BDC Reporter describes what happened and looks forward to what promises to be yet another historic week as the Covid-19 crisis continues to unfold in both expected and unexpected ways.
The U.S. Government has come to the rescue of middle market, non-investment grade business with an ambitious new program. We worry, though, that without two key changes to the terms of the program this initiative will end badly for most everyone concerned.
At the crack of dawn, the U.S. government announced a number of programs to support middle market companies after weeks of inaction. The markets jumped in reaction. So did the BDC Reporter to pen our initial findings and thoughts on what this historic government intervention means for our readers.
New Mountain Finance joins the long list of BDCs providing updates to its “stakeholders”. The BDC Reporter annotates the letter.
Solar Capital published a Stakeholder Letter fuller than most with new information about where the BDC stands in the midst of the current crisis. The BDC Reporter publishes the entire letter and provides numerous comments and analytical asides.
BlackRock Capital has agreed a short term waiver with its revolver lenders. We analyze the terms and the implications for the BDC and what else might be coming round the corner to assist the BDC at this difficult time.
Gladstone Investment provided a brief update as to its intentions regarding raising new equity capital (no) and paying its regular distributions (yes). The BDC Reporter seeks to guesstimate how the BDC’s liquidity and credit performance might look like going forward based on the little we know.
PennantPark Investment offers up a “Stakeholder Letter” to anyone interested. We annotate the contents and discuss what we find there and what we don’t.
BDC Fixed Income prices drop back after a big rally the prior week, but not too far. We provide the details and take a new snapshot of where we stand in the fourth week of the melt-down of BDC debt prices.
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.