We re-publish an article about a Gladstone Capital portfolio company recently added to the underperformers list due to the Covid-19 crisis, one of many such BDC-financed companies impacted by the changed environment.
We republish an article from the BDC Credit Reporter about the downgrade by our sister publication of a Oaktree Specialty Lending portolio company.
Main Street Capital – a little late in the day – gets round to updating shareholders about the impact of the Covid-19 crisis on its balance sheet, earnings and dividends. We analyze what we’ve learned to estimate liquidity; leverage and the likely payouts to expect from this much-beloved BDC.
Golub Capital is preparing for a Rights Offering. In anticipation, the BDC published certain preliminary IQ 2020 metrics which the BDC Reporter has sought to analyze. By the end, we are left confused by the BDC’s new strategy.
BDC Fixed Income prices have a good week, mirroring their common stock counterparts. Yet, we’re far from the days when most every unsecured debt issue traded at par. Just how far and what might need to happen for that to change is discussed in this latest version of the BDC Fixed Income Market Recap.
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.