Seeking Alpha

Gladstone Capital (GLAD)

  • Tue, Oct. 27, 9:39 AM
    • Gladstone Capital (NASDAQ:GLAD) agrees to sell 2M shares at a public offering price of $8.55 each for $16M in net proceeds. The underwriters have an option to buy another 300K shares at that price.
    • Source: Press Release
    • The stock's lower by 6.5% to $8.30.
    | Tue, Oct. 27, 9:39 AM | Comment!
  • 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
  • Tue, Sep. 1, 10:23 AM
    • The company has a high level of oil exposure - 15.4%  vs. the peer group average of 5.9% - says Cantor analyst David Chiaverini, downgrading Gladstone Capital (GLAD -3.1%) to Hold, with price target lowered fifty cents to $9.
    • “We fear that BDC portfolio companies exposed to oil and gas may face valuation write-downs in coming quarters given the still-low price of oil despite last week’s bounce-off the lows.”
    • He notes a weakening in GLAD's credit quality in Q2, with the NPL ratio rising 70 basis points on a fair value basis to 3.5%, and 320 bps on a cost basis to 13.4%. Peers reported similar ratios up just 30 bps and 100 bps, respectively.
    • The dividend remains safe, says Chiaverini, thanks to the external advisor's promise to waive advisory fees indefinitely.
    • Previously: Apollo Investment and Gladstone Capital downgraded (Sept. 1)
    | Tue, Sep. 1, 10:23 AM | 5 Comments
  • Thu, Aug. 27, 2:57 PM
    • Prospect Capital is higher by 7.4% after beating earnings estimates and reporting a slight increase in NAV, and also helping is a near-10% jump in the price of oil.
    • Ares Capital (ARCC +2.5%), Triangle Capital (TCAP +1.8%), PennantPark Investment (PNNT +5.4%), Medley Capital (MCC +3.2%), KCAP Financial (KCAP +3.1%), OHA Investment (OHAI +2.2%), Gladstone Capital (GLAD +4.6%).
    | Thu, Aug. 27, 2:57 PM | 1 Comment
  • Dec. 8, 2014, 11:30 AM
    • A bellwether of sorts in the BDC sector, Prospect Capital (PSEC -6.2%) earlier announced a big dividend cut, and the suspension of its stock issuance program so long as the share price is so far south of book value.
    • Prospect has some of its own issues to deal with, but common across the sector is too much money chasing too few deals, and the resultant lower yields for lower quality lending.
    • Fifth Street Capital (FSC -2.9%), Triangle Capital (TCAP -6.1%), TICC Capital (TICC -2.2%), KCAP Financial (KCAP -1.7%), Medley Capital (MCC -2.3%) Gladstone (GLAD -3.6%), OHA Investment (OHAI -5%), Blackrock Kelso (BKCC -1.1%), Main Street Capital (MAIN -0.2%), PennantPark (PNNT -1.3%).
    • Previously: Prospect Capital suspends ATM stock issuance program as dividend is cut (Dec. 8, 2014)
    | Dec. 8, 2014, 11:30 AM | 47 Comments
  • Jun. 26, 2014, 3:48 PM
    | Jun. 26, 2014, 3:48 PM | 26 Comments
Company Description
Gladstone Capital Corp is an externally managed, closed-end, non-diversified management investment company.
Sector: Financial
Country: United States