Seeking Alpha
View as an RSS Feed

BDC Buzz  

View BDC Buzz's Comments BY TICKER:
Latest  |  Highest rated
  • BlackRock Kelso Capital: What Comes Next? [View article]
    I do not have 'per report' pricing and charge quarterly for all reports including div cover, projections, rankings, price targets, etc. However, I do not follow BKCC as closely as many of the others but that might be changing due to the improved results over the last couple quarters.
    May 21, 2015. 09:20 AM | Likes Like |Link to Comment
  • BlackRock Kelso Capital: What Comes Next? [View article]
    njbother - Good for you on sticking with BKCC after the most recent cut. Like I said in a previous comment, BKCC is outside my personal risk profile but the new management seems to be a positive including the resignation of Mr. Maher and Mr. Lazar. Steve Sterling is the new CEO and was head of the Global Capital Markets Group.

    In the upcoming articles I will cover the potential for gains from equity realizations that will be upside to NAV and NII if they reinvest.

    I agree about FSC and the jury is still out. The fee discussion on the last call was impotent but at least a start. I think they will have some credit issues coming and it would be nice to structure the fees beforehand so that management is responsible rather than passing along to shareholders.
    May 20, 2015. 08:51 AM | Likes Like |Link to Comment
  • KCAP Financial: What Comes Next? [View article]
    Bart - I'm not sure I follow your question. The CLOs are different than the Asset Manager Affiliates.

    Accounting for CLO Equity Investments - Since its inception in 2006, the Company recorded distributions received from its CLO equity investments as investment income and reflected changes in the fair value of the CLO equity investments in its consolidated statement of operations. However, Management and the Audit Committee have determined that the "effective interest" method is the appropriate method for recognizing investment income from CLO equity investments, with any difference between the cash distribution received and the amount calculated pursuant to the effective interest method being recorded as an adjustment to the cost basis of the investment.

    Distributions from Asset Manager Affiliates - The Company has restated its financial statements for the correction of an error related to the accounting for distributions that the Company has received from its Asset Manager Affiliates. Specifically, distributions from the Asset Manager Affiliates to the Company were historically recorded entirely as investment income over the prior year periods. It was determined that a portion of certain distributions contained tax-basis return of capital which should have been recorded as adjustments to the cost basis of the investment in Asset Manager Affiliates ("Distributions received in excess of tax-basis earnings and profits"). Prior period financial statements have been restated to correct this error.
    May 20, 2015. 08:07 AM | Likes Like |Link to Comment
  • KCAP Financial: What Comes Next? [View article]
    I agree. Personally I do not like the high risk profile but each investor is different and it would be nice to have another internally managed high yield BDC that I could recommend. TCAP is the alternative.
    May 20, 2015. 08:05 AM | Likes Like |Link to Comment
  • BlackRock Kelso Capital: What Comes Next? [View article]
    Robert - Thanks for the compliments. MCC is not a part of this series because it is relatively newer BDC compared to the 12 included so it is not apples to apples. For the last 12 months and probably more I have been grouping MCC with PSEC and FSC. They have all made many of the same mistakes and shareholders continue to pay the price. In the past articles that you might be referring to I was comparing them against each other and not higher quality BDCs. MCC has a strange policy about continually restructuring deals that are about to go bad and it caught up with them. PSEC is using some sort of shell game with the rights offerings so we will have to wait see what types of credit issues appear. FSC ripped the bandaid off. All three need to work on shareholder alignment and transparency through fees and buybacks.
    May 20, 2015. 08:02 AM | 1 Like Like |Link to Comment
  • BlackRock Kelso Capital: What Comes Next? [View article]
    zaks - 2014 was an anomaly for BDCs so it will probably take 2015 for proper valuations of the industry before it can compared to general indices.
    May 20, 2015. 07:50 AM | Likes Like |Link to Comment
  • BlackRock Kelso Capital: What Comes Next? [View article]
    Seeking Alpha needs to update the name of this company to 'BlackRock Capital Investment Corporation'.

    On March 6, 2015, BlackRock Kelso Capital Corporation changed its name to BlackRock Capital Investment Corporation as the result of the consummation of a definitive agreement between BlackRock Advisors, LLC (“BlackRock Advisors”), a wholly owned subsidiary of BlackRock, Inc. (“BlackRock”), and BlackRock Kelso Capital Advisors whereby BlackRock Advisors became the investment advisor of BlackRock Kelso Capital Corporation.
    May 20, 2015. 07:44 AM | Likes Like |Link to Comment
  • BlackRock Kelso Capital: What Comes Next? [View article]
    capitalb - Yes. MCGC was a dog of a BDC to follow and was my lowest ranked BDC for two years. Not that it is gone (or going) my rankings have all changed because MCGC was the floor. ;)
    May 20, 2015. 07:29 AM | Likes Like |Link to Comment
  • BlackRock Kelso Capital: What Comes Next? [View article]
    Smurf - I still consider BKCC to have a riskier than average profile and I do not follow the company as closely as others, especially when it comes to dividend coverage in the coming quarters. However, I applaud management for going after lower yielding assets. PSEC is still chasing yield and was a majority of managements objectives for 2015 - lessons not learned by that management team.
    May 20, 2015. 07:26 AM | 1 Like Like |Link to Comment
  • Gladstone Capital: What Comes Next? [View article]
    NM - Thanks for the shout out in BDC Reporter and you are correct about not surmising 'What Comes Next?' I'm saving it for the final article in this series after taking a long-term look at all 12 BDCs.

    KCAP is next in the queue.
    May 18, 2015. 02:10 PM | Likes Like |Link to Comment
  • Gladstone Capital: What Comes Next? [View article]
    NM - Thanks for sharing your outlook on GLAD and I agree with many of the issues going forward including declining income from the portfolio and continued compression on earnings that necessitates the waiving of fees to cover dividends.

    It is especially difficult to perform a longer term analysis on BDCs due to the lack of history for most. Even for the ones I am including in this series, there are various factors making it less apples to apples but many BDCs inherited portfolios with legacy issues.

    I agree with GLAD being at max portfolio size/leverage and it seems like an SBIC license would be the only avenue to increase leverage. Maybe an SLP to increase overall yield?

    As for pricing, I agree as well and $7.50 to $8.50 based on yield/returns compared to $9.00 based on multiples but the oil/gas exposure gives a discount so $8.73 is above my high end.
    May 18, 2015. 11:16 AM | Likes Like |Link to Comment
  • Prospect Capital: Why A 22% NAV Discount Won't Trigger A Buyback [View article]
    Rashbaugh - CLO residual interests are very tricky to value because they can be impacted by many factors that would reduce the amount of cash flow. In general, I believe that PSEC has aggressive accounting/valuation policies and we have seen what other BDCs have done with valuations including CLO equity.

    Bart - I think the spinoffs/rights offerings are confusing for all of us because management has not given investors clarity on what to expect. Some of this could have happened on the call but they hung up. As for the 30% non-qualified bucket, PSEC will consistently find ways to maximize this portion of the portfolio because it usually includes higher yield but higher risk as well. Many BDCs use this bucket for their SLP programs that use 3:1 off balance sheet leverage rather than 10:1 for many CLOs.
    May 17, 2015. 01:14 PM | 3 Likes Like |Link to Comment
  • Hercules Technology Growth Capital: What Comes Next? [View article]
    Stephen - Are you referring to the management company?
    May 17, 2015. 12:58 PM | 1 Like Like |Link to Comment
  • Hercules Technology Growth Capital: What Comes Next? [View article]
    Elliot - I believe that it does.
    May 17, 2015. 12:57 PM | 1 Like Like |Link to Comment
  • Hercules Technology Growth Capital: What Comes Next? [View article]
    SM - The early payoffs are a metric that the company watches closely for many reasons and in Q4 2014 was almost $150 million compared to $47 million in Q1 2015.
    May 15, 2015. 02:46 PM | 1 Like Like |Link to Comment
COMMENTS STATS
3,690 Comments
3,505 Likes