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Nicholas Marshi
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Nicholas Marshi is the Chief Investment Officer of Southland Capital Management (SCM). The Company is a Registered Investment Adviser in Santa Monica, California. SCM's principal expertise is in the area of publicly traded leveraged finance to U.S. private companies, including the Business... More
My company:
Southland Capital Management, LLC
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BDC Reporter
  • BKCC: Issue Equity Below NAV ? 0 comments
    Jan 8, 2010 12:21 PM | about stocks: BKCC

    Read on Yahoo Finance Message Board that BlackRock Kelso may be preparing to issue stock below NAV. This may account for the only modest uptick in the stock price compared to other similar BDCs most of which have been rising ever higher in recent weeks. The Company probably needs the capital to strengthen its existing balance sheet as much as for new investment opportunities.

    Nonetheless, we're not too worried about the dilution (unlikely BKCC will raise huge amounts), and the dividend will probably be maintained. This is just a common sense argument. BKCC recently increased its dividend to 32 cents from 16 cents to reflect the waning of its concerns about its Liquidity. If it now raises new equity and immediately drops its dividend the next capital raise will be jeopardized.

    Disclosure: LONG:BKCC
    Themes: Sector: BDC Stocks: BKCC
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