FS-KKR Capital issues $400mn of unsecured debt to pay off an equal amount on the books. However, this is not just an equal swap and there is much to consider about the shape and cost of the BDC’s liabilities in the quarters ahead.
There may have been a sea change in the direction of rates late in the week, but BDC Fixed Income prices did not follow in the holiday shortened week. Otherwise, the only news worth discussing came out of Medley Capital. However, another BDC might be about to launch a new unsecured debt issue…
Notwithstanding a quiet, holiday shortened week, BDC common stock prices reached a new 2019 milestone.
Hot off the digital press: a new twist in the Medley saga that will be of interest to both debt and stockholders: Medley Capital has made an offer to its Israeli unsecured debt holders that they might find hard to refuse.
Investcorp has arranged to acquire the investment advisor of under-performing CM Finance. We review how the transaction is structured and what the impact might be on the shareholders of this lower middle market focused BDC.
The BDC Fixed Income sector continues to trade at record high levels, but there are two exceptions which bear watching, and which could yet give the segment a black eye.
A mid-summer doldrums week for the BDC sector as a group, but a big development at a smaller sized BDC keeps things interesting.
OFS Capital – in a BDC first – establishes a wholly owned subsidiary just to acquire senior loans. We discuss what we now know, what we don’t and why that matters.
The BDC Reporter amends its 12 month Dividend Outlook for Goldman Sachs BDC after reviewing the IQ 2019 results.
Record low interest rates – and the promise of more to come – boosted up BDC Fixed Income prices. With a couple of exceptions…We also review the latest Baby Bond and speculate about what comes next.
A wonderful week for the broad indices was not reflected in what happened to the BDC sector. We review the softness in BDC price trends despite 3 weeks of an up market and the possible reasons.
We review an under-performing company in FS-KKR Capital’s portfolio and segue into a broader discussion of portfolio credit risk at this very large BDC, partly managed by KKR.
With new information recently released by WhiteHorse Finance, we’ve updated the BDC’s Credit Outlook, initially published on May 23, 2019.
THL Credit joins the swollen ranks of BDCs who’ve adopted the new higher leverage limit while also becoming one of a much smaller group of BDCs to cut contractual compensation costs. Both developments require analysis and commentary.
The median BDC Fixed Income price drops slightly but investor enthusiasm remains high. We look forward to how Fed actions might affect prices in the very short term. Also, a new Baby Bond becomes the 43rd BDC public debt issued.
BDC sector prices outpace the major indices, now up for two weeks in a row. However, negative factors – including lower rates and credit problems – remain. Does the upsurge continue regardless ?
OFS Capital joins a select group of BDCs that have offered to reduce a portion of their compensation over a certain leverage level. The BDC Reporter looks the gift horse in the mouth…
The BDC Reporter rates MVC Capital’s credit trend and outlook following our review of the just published 10-Q.
A famous discount retailer gets restructured and three BDCs with more than $50mn of exposure are involved. We re-publish our post from the BDC Reporter and discuss both the credit issues and the valuations involved.
We re-publish an article from the BDC Credit Reporter, covering the Chapter 11 filing of one of Prospect Capital’s largest borrowers, which has been in trouble for several years. The BDC Credit Reporter believes a major loss will need to be recorded by PSEC.