Seeking Alpha

BDC Buzz

 
View as an RSS Feed
View BDC Buzz's Comments BY TICKER:
Latest  |  Highest rated
  • Prospect Capital: What Comes Next? Part 3 [View article]
    RLP - 500 basis points is 5% (not 500%).
    Aug 22 07:38 AM | 2 Likes Like |Link to Comment
  • BDC Risk Profiles: An Introduction [View article]
    Gregory - Thank you. WF has a different focus and is very good at what they do but obviously biased due to the investment banking side of the business. Plus they do not cover some of the best BDCs including MAIN and FSIC.

    Again thank you and consider my articles work in progress compared to some of the banks/brokers.
    Aug 22 04:03 AM | 1 Like Like |Link to Comment
  • BDC Rankings: May 2014 [View article]
    The decision to issue below NAV is more of an investment philosophy that is not taken lightly and I do not believe mgmt all of a sudden changed their minds from earlier this year. That transcript was not available on SA but yes that would be a gem
    Aug 22 12:51 AM | Likes Like |Link to Comment
  • High-Yield BDCs For Q3 2014: Part 3 [View article]
    MCC (as well as many of the higher yield BDCs) is serial equity issuer and has had offerings almost every quarter. On the last call mgmt stated:

    "We have said that we are not going to raise capital below book. We said that since we came public. So the idea that we wouldn’t do that and may have a period of time where we couldn’t, we have a couple of levers and I’ll go through them: (a) liquidity, meaning we are not fully levered, (b) we have access to our SBCI facility and you should expect that we’ll both, the dropdown, the additional regulatory capital, access the additional debt and then seek a second license. That takes time and it’s not certain but we have reasonable basis to assume that.”
    Aug 21 03:14 PM | 1 Like Like |Link to Comment
  • Prospect Capital Corp.'s Upcoming Fiscal Q4 2014 Net Asset Value Projection [View article]
    Scott - Did you happen to come up with a projected cumulative net ICTI associated with these assumptions?
    Aug 21 02:57 PM | Likes Like |Link to Comment
  • BDC Risk Profiles: An Introduction [View article]
    FSIC has a higher regular dividend yield, similar special dividend yield (almost 2% annually) but much lower NAV/stock price growth potential. So there are a few differences when looking at total return.

    They do have similar amounts of dividend growth as well. Here is a link with some of that info:

    http://bit.ly/1l2E938
    Aug 21 01:03 PM | Likes Like |Link to Comment
  • BDC Rankings: May 2014 [View article]
    JZ - The primary issue for me: It is much better for a BDC to grow slowly using tranches of equity and debt keeping leverage at an optimum level. It doesn't make sense to issue that amount of equity and have it sitting around until they can find quality deals as well as use higher amounts of leverage to increase returns. It seems like management would be under the gun to close deals to grow income to pay the dividends on the new shares. This is a frothy lending environment and quality BDCs have been turning down deals with very little or lumpy growth.
    Aug 21 11:01 AM | Likes Like |Link to Comment
  • The High-Yield BDC Portfolio For Q3 2014 [View article]
    Gary - I was just going through that as well as updating MCC projections. I agree that NMFC will probably have an offering soon and an N-2 is a good sign. Timing is perfect given the dept-to-equity ratio of 0.74 and higher stock price. Hopefully the company will wait for the price to rise a bot more before issuing new shares.
    Aug 21 03:00 AM | Likes Like |Link to Comment
  • BDC Risk Profiles: An Introduction [View article]
    Cal - That is what I like to hear and dipping your toe in is the best way with BDCs. Buy on the dips.
    Aug 20 11:25 PM | 1 Like Like |Link to Comment
  • BDC Risk Profiles: An Introduction [View article]
    Bob - I do track and include with my offline reports but it's usually the larger BDCs so not applicable to most. Most of the companies with baby bonds and/or exchange traded debt. The best people to ask are Factoids and Robin Heiderscheit who commented above.

    You can find the info in each of the presentations. Here is the recent from FSIC:

    July 7, 2014
    S&P Upgrades FSIC to BBB with Stable Outlook

    FS Investment Corporation (NYSE: FSIC) today announced that Standard & Poor’s Rating Services has upgraded its credit rating of FSIC to BBB with a stable outlook. At the same time, S&P assigned a BBB rating to FSIC’s proposed unsecured note issuance.

    In early April, FSIC received a BBB- with a positive outlook ahead of FSIC’s anticipated listing on the New York Stock Exchange. For the July upgraded rating, S&P cited improved funding and financial risk profiles resulting from FSIC’s proposed issuance of unsecured debt and FSIC’s recent listing on the New York Stock Exchange as reasons for its new rating. S&P further cited FSIC’s focus on senior secured first-lien assets as support for the rating upgrade.
    Aug 20 11:22 PM | 1 Like Like |Link to Comment
  • BDC Risk Profiles: An Introduction [View article]
    Perp - Thank you. I somewhat agree with you but at that point you can only look at history and have faith in management to pick higher quality companies. BDCs that are growing much faster than the others are less likely cherry picking the best deals. It is a good sign when you see a quarter or two with flat/negative portfolio growth because they probably turned down a few deals with higher credit risk.
    Aug 20 11:14 PM | 2 Likes Like |Link to Comment
  • Highlights From FS Investment's Q2 2014 Results [View article]
    JZ - Yes. It was originally through direct communication that I believe FSIC will not be issuing shares for a while. They specifically pointed out that there has not been a meaningful equity raise since early 2012 and had no immediate plans to but would rather use leverage to increase returns while shifting the portfolio toward more direct origination with higher quality companies and equity participation for further upside.
    Aug 20 11:08 PM | Likes Like |Link to Comment
  • BDC Rankings: May 2014 [View article]
    Let us know if they actually schedule a call.
    Aug 20 11:00 PM | Likes Like |Link to Comment
  • Total Return BDCs For Q3 2014: Part 3 [View article]
    Update - August 20, 2014 - Medley Capital Corporation (the "Company") (NYSE: MCC) announced the pricing of the registered public offering of 5,000,000 shares of its common stock at a public offering price of $13.02 per share. The Company has granted the underwriters a 30-day option to purchase up to an additional 750,000 shares sold at the public offering price.
    Aug 20 10:57 PM | Likes Like |Link to Comment
  • The High-Yield BDC Portfolio For Q3 2014 [View article]
    Looks like MCC pulled the trigger:

    August 20, 2014 - Medley Capital Corporation (the "Company") (NYSE: MCC) announced the pricing of the registered public offering of 5,000,000 shares of its common stock at a public offering price of $13.02 per share. The Company has granted the underwriters a 30-day option to purchase up to an additional 750,000 shares sold at the public offering price.
    Aug 20 10:55 PM | Likes Like |Link to Comment
COMMENTS STATS
2,725 Comments
1,977 Likes