A weaker week for the markets and the BDC sector. We discuss both the week’s individual BDC winner and losers, while keeping an eye on earnings season right round the corner.
We share highlights from the BDC Credit Reporter’s compilation for the week of developments amongst under-performing portfolio companies, naming the BDCs and the amounts involved.
As we reported a month ago, non-traded BDC behemoth Owl Rock Capital has come to the public markets. We provide some basic info on the offering; a miscellany of additional information and a promise to undertake an in-depth review when the first earnings report comes round.
In the middle of a turnaround and repositioning of its portfolio, Capitala Finance disposes of 2 companies. We discuss the impact on the BDC’s ongoing attempts to re-make itself after a series of credit losses and dividend decreases.
Manuel Henriquez is out at Hercules Capital. We provide the details and sketch out what might happen next. There are a host of possibilities.
Price changes in the BDC Fixed Income sector were consistent with expectations and prior periods. However, there was one unexpected development at the end of the week that might portend a major change in the size of the BDC publicly traded unsecured debt sector.
On one hand, BDC index prices moved up again. On the other hand, other data we use to measure investor enthusiasm for the BDC sector was unmoved. We seek to reconcile this contradictory picture, while looking forward.
The BDC Reporter continues its series on the status of BDC adoption of the SBCAA and the impact on risk and return. We look at Carlyle’s TCG BDC.
Saratoga Investment has a mostly uneventful quarter. Nonetheless, the BDC reporter finds much to review in the Conference Call transcript.
A BDC portfolio company receives an injection of new capital, which should accelerate growth plans.
A major risks solutions company, to which 5 different BDCS have nearly $100mn of exposure to, has been acquired. We review impact on the BDCs involved.
Gladstone Investment announces another special payout to shareholders. The BDC Reporter takes the opportunity to review the overall dividend outlook for the next 12 months and comes up with a re-rating.
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.