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Fifth Street Finance (FSC)

  • Tue, Nov. 17, 10:01 AM
    • An owner of 6% of Fifth Street Finance (FSC +1.7%), RiverNorth Capital takes aim at the relationship between FSC and Fifth Street Asset Management (FSAM -6.6%), noting the FSC board is too heavily stocked with FSAM employees.
    • Nominating its own slate to the FSC board, RiverNorth would cut the "absurd" 2/20 fee structure, and focus on buybacks rather than boosting investments.
    • "Why is the external manager boasting about their origination platform when the smart money would be buying back the company's stock," asks RiverNorth, noting at the current value of 0.66x book, share repurchases would provide an immediate return of 51.5%.
    • Previously: Fifth Street Finance becomes activist target (Nov. 17)
    | Tue, Nov. 17, 10:01 AM | 28 Comments
  • Tue, Nov. 17, 9:49 AM
    • Disclosing a 6% stake in Fifth Street Finance (FSC +2%) last night, RiverNorth Capital Management - noting "abysmal performance and abusive fee structure" - calls for immediate changes to the board and nominates its own slate of three for the 2016 annual meeting.
    • Full text of RiverNorth letter to the Fifth Street board.
    • RiverNorth's "FixFSC" website
    • Fifth Street responds, calling RiverNorth's PR "inflammatory and misleading."
    | Tue, Nov. 17, 9:49 AM | 14 Comments
  • Tue, Oct. 6, 7:31 AM
    • Fifth Street Asset Management (NASDAQ:FSAM) served as lead arranger and a one-stop financing facility for the acquisition of Valet Parent by Ares Management and Harvest Partners.
    • The facility included investments from Fifth Street Finance (NASDAQ:FSC) and Fifth Street Senior Floating Rate Corp. (NASDAQ:FSFR).
    • Source: Press release
    | Tue, Oct. 6, 7:31 AM | 28 Comments
  • Mon, Sep. 28, 11:16 AM
    • A weekend WSJ story highlighting growing spreads in the high-yield market and the solvency of commodity giant Glencore being called into question are possibly teaming to spook investors in BDCs today.
    • On Friday, Altice sold $4.8B of junk bonds to fund its purchase of Cablevision, well less than the $6.3B it hoped to sell. The 10-year paper on the deal priced to yield 10.875%, more than 100 bps higher than what had been initially expected. Olin on Friday sold $1.2B of paper to fund an acquisition. It had hoped to sell $1.5B. For the privilege, Olin is paying 10% for the 10-year notes, up from 7% expected earlier this month.
    • Prospect Capital (PSEC -4.2%), Fifth Street (FSC -3%), Ares (ARCC -3.2%), FS Investment (FSIC -2.3%), Main Street (MAIN -3.4%), Triangle (TCAP -5.6%), Medley (MCC -2.5%), KCAP (KCAP -3.7%), Gladstone (GLAD -3.9%), WhiteHorse (WHF -5.6%).
    | Mon, Sep. 28, 11:16 AM | 60 Comments
  • Wed, Sep. 9, 7:38 AM
    • The company completed its initial $5M in share repurchases in August, slightly more than the $4.9M it expected. Should current market conditions persist, FSC plans to buy back another $15M in stock this month. Buybacks will then stop for a time as the quarterly blackout period begins on Oct. 1.
    • Source: Press Release
    • Previously: Fifth Street Finance to speed pace of buybacks (Aug. 20)
    | Wed, Sep. 9, 7:38 AM | 75 Comments
  • Thu, Aug. 20, 3:42 PM
    • The rout in stocks today also includes the BDC sector, but not Fifth Street FInance (FSC +2.1%), which earlier today promised a substantially faster pace of share repurchases next month.
    • The team at KBW notes the move should please investors disappointed by the size of previous buyback intentions. "We believe this will send a strong signal to investors that management will listen to their concerns."
    • The next step, says KBW, is for the company should extend its fee waiver to all capital, and not just newly-raised equity.
    | Thu, Aug. 20, 3:42 PM | 13 Comments
  • Thu, Aug. 20, 7:39 AM
    • The company expects to complete in August the initial $4.9M in repurchases discussed in the most recent earnings call. Should current market conditions continue, FSC expects to purchase a far larger amount of stock in September prior to the beginning of the next quarterly blackout period on October 1.
    • A $100M buyback program was authorized last November.
    • Source: Press Release
    | Thu, Aug. 20, 7:39 AM | 25 Comments
  • Tue, Aug. 18, 4:51 PM
    • The maturity on FSC's existing $125M revolver with Sumitomo Mitsui Banking was extended by year to Sept. 2017, and the interest rate was changed from Libor plus 225 basis points to Libor plus 200 bps, or Libor plus 225 bps, based on actual usage levels.
    • Source: Press Release
    | Tue, Aug. 18, 4:51 PM | 12 Comments
  • Mon, Aug. 10, 6:31 AM
    • Fifth Street Finance (NASDAQ:FSC): Q2 NII of $0.21 beats by $0.02.
    • Total investment income of $70.19M (-5.5% Y/Y) beats by $1.36M.
    • Press Release
    | Mon, Aug. 10, 6:31 AM | 40 Comments
  • Tue, Jul. 14, 8:05 AM
    • Fifth Street Finance (NASDAQ:FSC) completes an agreement with its investment adviser Fifth Street Asset Management (NASDAQ:FSAM) in which FSAM will waive a portion of its base management fee for new equity raises to 1%. The initial term of the waiver is until January 2017, at which FSAM intends to renew annually.
    • Source: Press Release
    | Tue, Jul. 14, 8:05 AM | 21 Comments
  • Fri, Jun. 26, 3:43 PM
    • Continued strong economic data (June consumer confidence beat expectations) and apparently optimism over a Greek deal getting inked this weekend make for good excuses for today's selling in fixed income.
    • The U.S. 10-year yield is up seven basis points to 2.48%. Short-term rate futures continue to read more dovish than the Fed, predicting just one 25 basis point rate hike by year-end.
    • TLT -1.2%, TBT +2.4%.
    • Among the income favorites, utilities (XLU +0.6%) and equity REITs (IYR +0.2%) are being spared punishment today, leaving jittery investors to focus their selling in mortgage REITs.
    • Also in the red are BDCs, led by Prospect Capital (PSEC -2.5%) and Fifth Street Finance (FSC -1.5%). American Capital (ACAS -1.3%), Medley Capital (MDLY +0.1%), THL Credit (TCRD -1.2%), PennantPark (PNNT -1%).
    | Fri, Jun. 26, 3:43 PM | 36 Comments
  • Mon, Jun. 22, 9:28 AM
    • HFG Holdings, a specialty lender providing asset-backed lending and term loan product to various parts of the healthcare industry, has been sold to MidCap Financial. Terms were not disclosed.
    • Fifth Street (NASDAQ:FSC) acquired HFG in June 2013 and had teamed with management over the past two years to expand the company's offerings.
    • Source: Press Release
    | Mon, Jun. 22, 9:28 AM | 8 Comments
  • Mon, May 11, 7:36 AM
    • Q1 net investment income of $29.5M or $0.19 per share vs. $35.1M and $0.23 in Q4. Distributions are at a $0.18 quarterly run rate.
    • Net asset value per share of $9.18 vs. $9.17 at the start of the quarter.
    • $147.5M of investments closed during quarter in five new an three existing portfolio companies. $466.6M closed one year ago.
    • Previously: Fifth Street Finance misses by $0.02, misses on revenue (May 11)
    • FSC flat premarket
    | Mon, May 11, 7:36 AM | 11 Comments
  • Mon, May 11, 6:27 AM
    • Fifth Street Finance (NASDAQ:FSC): FQ2 NII of $0.19 misses by $0.02.
    • Total investment income of $68.15M (-5.5% Y/Y) misses by $2.89M.
    • Press Release
    | Mon, May 11, 6:27 AM | 11 Comments
  • Tue, Feb. 10, 10:12 AM
    • On the earnings call yesterday (transcript), Raymond James analyst Robert Dodd scratched his head over the whopping size of some of the non-accruals, noting of the four, two of them now look to be marked at about 50% of cost.
    • Responding, CIO Ivenlin Dimitrov notes one of them is Fifth Street's (FSC -2.2%) Canadian oil sands exposure. He feels there's enough asset coverage and business momentum to get better results, but as of Dec. 31, the company thought the mark was appropriate. The other big write-down, he says, is one of FSC's smaller EBITDA companies, and it's one of the reasons Fifth Street is shifting the portfolio towards larger issuers.
    • Raymond James cuts to Market Perform and Barclays cuts to Equalweight, with price target lowered to $8 from $11.
    • Previously: Fifth Street Finance now off 13.6% after big dividend cut (Feb. 9)
    • Previously: New Fifth Street management slashes the dividend (Feb. 9)
    | Tue, Feb. 10, 10:12 AM | 21 Comments
  • Mon, Feb. 9, 12:46 PM
    | Mon, Feb. 9, 12:46 PM | 3 Comments
Company Description
Fifth Street Finance Corporation is a a speciality finance company. It invests in small and mid-sized companies in connection with investments by private equity sponsors.
Sector: Financial
Industry: Credit Services
Country: United States