KCAP Financial
 (KCAP)

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  • Wed, Jan. 20, 11:05 AM
    • The S&P 500 is lower by 3%, oil is nearing a $26 handle, and high-yield is selling off, with HYG -1.4% and JNK -1.3%. Those two ETFs are lower by about 5% YTD and in the area of 15% Y/Y.
    • Leveraged to all the above data, BDC sector losses are eve worse. Prospect Capital (PSEC -3.6%), Fifth Street (FSC -7.4%), Ares Capital (ARCC -5.3%), FS Investment (FSIC -10.8%), Main Street (MAIN -6.4%), Blackrock Capital (BKCC -5.3%), Apollo Investment (AINV -7%), Triangle Capital (TCAP -7.9%), TICC Capital (TICC -3.1%), Pennant Park Investment (PNNT -6.5%), KCAP Financial (KCAP -7.7%), THL Credit (TCRD -8%), TCP Capital (TCPC -7.4%), Gladstone Capital (GLAD -5.6%), WhiteHorse Finance (WHF -9.3%), Garrison Capital (GARS -6.8%)
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Wed, Jan. 20, 11:05 AM | 51 Comments
  • Thu, Jan. 14, 12:04 PM
    • A rally in the major averages and in the price of oil is failing to translate into a bounce for the roughed-up BDC sector.
    • Leading the way lower today is Gladstone Capital (GLAD -16.3%) which is notable (as are others in the sector) for its exposure to energy. Popular names like Prospect Capital (PSEC -1.8%), Fifth Street FInance (FSC -3.1%), Ares Capital (ARES -2.3%), KCAP Financial (KCAP -6%), and Main Street Capital (MAIN -3.1%) also can't catch a bid.
    • As BDC Buzz points out on Seeking Alpha, the BDC sector hasn't done a whole lot worse than the broader averages this year (though that gap is surely widening today), and a large handful of names are in the green for 2016. Among them (along with how they're doing in today's session) are Goldman Sachs BDC (GSBD -1.3%), Golub Capital (GBDC -0.4%), PennantPark Floating Rate (PFLT -1.5%), TCP Capital (TCPC -1.2%), and TPG Specialty Lending (TSLX +2.3%).
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Thu, Jan. 14, 12:04 PM | 51 Comments
  • Tue, Jan. 12, 11:28 AM
    • Up to one-third of American oil and gas producers could near bankruptcy and restructuring by the middle of next year, according to Wolfe Research, which suggests a rebound in crude to at least $50 per barrel would be necessary for survival.
    • Oil today is threatening a $29 handle, down 2.9% to $30.58.
    • A new report from Morgan Stanley says the environment is worse than the major 1986 oil patch bust which last for five years.
    • Plenty of P-E money is standing on the sidelines, but managers see no need to rush in - instead preferring to wait for bankruptcies and the wiping out of the debt.
    • “There’s no reason to be anybody’s savior,” says FBR's Chad Mabry. “If you can just get the assets out of bankruptcy, then you don’t have to save anyone.”
    • Prospect Capital (PSEC -3.8%), Fifth Street Finance (FSC -2.6%), TICC Capital (TICC -4%), PennantPark (PNNT -4.5%), KCAP Financial (KCAP -1.7%), OHA Investment (OHAI -2.4%), Gladstone Capital (GLAD -2.7%)
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Tue, Jan. 12, 11:28 AM | 59 Comments
  • Dec. 16, 2015, 4:43 PM
    • KCAP Financial (NASDAQ:KCAP) declares $0.15/share quarterly dividend, -28.6% decrease from prior dividend of $0.21.
    • Forward yield 15.11%
    • Payable Jan. 28; for shareholders of record Jan. 4; ex-div Dec. 30.
    | Dec. 16, 2015, 4:43 PM | 4 Comments
  • Dec. 7, 2015, 12:27 PM
    • Triangle Capital (TCAP -9.7%) is leading the way lower in the sector as oil tumbles all the way down to $38 per barrel, the XLE slides 4.5%, and junk bonds sell off again.
    • OHA Investment (OHAI -6.4%), PennantPark Investment (PNNT -4.6%), Prospect Capital (PSEC -2.8%), Ares Capital (ARCC -2.5%), Apollo Investment (AINV -4.5%), KCAP Financial (KCAP -3.4%), Main Street Capital (MAIN -1.1%).
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Dec. 7, 2015, 12:27 PM | 42 Comments
  • Nov. 4, 2015, 5:12 PM
    • KCAP Financial (NASDAQ:KCAP): Q3 NII of $0.18 beats by $0.02.
    • Total investment income of $11.78M (+8.7% Y/Y) beats by $0.6M.
    | Nov. 4, 2015, 5:12 PM
  • Oct. 6, 2015, 2:19 PM
    • "We believe that KCAP Financial (NASDAQ:KCAP) is not well understood by investors and KCAP shares are materially undervalued," says DG Capital Management, disclosing a 3.1% stake in the company, and urging the board to consider a sale of the company, or a sale of certain assets to raise cash with which to buy back stock.
    • "We believe that a sale of the entire business to another Business Development Company ("BDC") would likely yield the highest return for shareholders," says DG.
    • Up more than 5% on the news earlier today, KCAP is now ahead 2.1% for the session.
    | Oct. 6, 2015, 2:19 PM | 4 Comments
  • Sep. 28, 2015, 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%).
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Sep. 28, 2015, 11:16 AM | 60 Comments
  • Sep. 22, 2015, 4:08 PM
    • KCAP Financial (NASDAQ:KCAP) declares $0.21/share quarterly dividend, in line with previous.
    • Forward yield 17.25%
    • Payable Oct. 27; for shareholders of record Oct. 14; ex-div Oct. 12.
    | Sep. 22, 2015, 4:08 PM
  • Sep. 16, 2015, 11:35 AM
    • KCAP's closing price on Friday of $4.73 was a 32% discount to the most recent NAV per share of $6.96, writes Philip Mause. The current dividend of $0.21 per share leads to an annualized yield of 17.5%, leaving plenty of room for a substantial yield even if the payout is cut.
    • Turning to operations, asset performance has been fine, with just one loan representing 0.05% of all assets in default. No loans made since 2008 are in default, meaning the company's new lending standards are paying off.
    • Why the discount? The biggest factor could be KCAP coming up against its leverage limits (BDCs can have debt no more than 50% of total asset value). Scaling back on leverage, says Mause, could give the company more flexibility.
    • The stock's higher by 4.9% on the session.
    | Sep. 16, 2015, 11:35 AM | 3 Comments
  • Aug. 27, 2015, 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%).
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Aug. 27, 2015, 2:57 PM | 1 Comment
  • Aug. 6, 2015, 11:51 AM
    • Q2 net investment income of $5.8M or $0.16 per share vs. $6.5M and $0.18 in Q1. Dividend was $0.21.
    • Net asset value per share of $6.96 slips from $7.16 in Q1. The current stock price is $5.01.
    • CEO Dayl Pearson notes a "moderation" in new deal activity from Q1, but says the company maintains a healthy pipeline.
    • Previously: KCAP Financial misses by $0.02, misses on total investment income (Aug. 5)
    • KCAP -2.9%
    | Aug. 6, 2015, 11:51 AM
  • Aug. 5, 2015, 5:02 PM
    • KCAP Financial (NASDAQ:KCAP): Q2 NII of $0.16 misses by $0.02.
    • Total Investment Income of $11.2M (+14.3% Y/Y) misses by $0.85M.
    | Aug. 5, 2015, 5:02 PM
  • Jul. 24, 2015, 3:01 PM
    • Just a 1% decline in the major averages (which are being helped by some high-profile earnings moves) is masking far greater carnage in a number of other sectors, notably healthcare (XLV -2.5%) and energy (XLE -2%).
    • Business development companies and mortgage REITs are being socked again as well, suggesting the worry may go beyond interest rates and to credit in general, especially as commodity prices continue to tumble - to pick one, crude oil at $48.06 per barrel is at its lowest price in about four months.
    • Among BDCs: Hercules Technology Growth (HTGC -4.2%), Triangle Capital (TCAP -3.3%), PennantPark Investment (PNNT -5.4%), Prospect Capital (PSEC -1.4%), Main Street Capital (MAIN -2.8%), TICC Capital (TICC -2.4%), KCAP Financial (KCAP -2.6%), THL Credit (TCRD -2.7%), FS Investment (FSIC -1.8%).
    • Among mREITs: Armour Residential (ARR -3.1%), Two Harbors (TWO -0.9%), CYS Investments (CYS -2%), Invesco Mortgage (IVR -1.5%), Capstead Mortgage (CMO -1.2%), Apollo Residential (AMTG -2.6%), Arlington Asset (AI -3.7%), American Capital Mortgage (MTGE -0.9%), Orchid Island (ORC -5.8%).
    • MReit ETFs: MORL, REM, MORT, LMBS
    • BDC ETFs: BDCL, BDCS, BIZD, FGB
    | Jul. 24, 2015, 3:01 PM | 82 Comments
  • May 7, 2015, 9:40 AM
    • Net investment income of $6.5M or $0.18 per share vs. $4.5M and $0.13 one year ago. Dividend is $0.21.
    • NAV per share of $7.16 up from $6.94 at start of year.
    • Investment income from investments in CLO fund securities of $4.6M up 45% Y/Y.
    • The asset management unit priced Catamaran CLO 2015-1 in Q1, and the $464M deal closed on May 5.
    • Previously: KCAP Financial beats by $0.03 (May 6)
    • KCAP +2.5%
    | May 7, 2015, 9:40 AM | 1 Comment
  • May 6, 2015, 4:58 PM
    • KCAP Financial (NASDAQ:KCAP): Q1 NII of $0.18 beats by $0.03.
    • Total investment income of $12.34M (+23.5% Y/Y) beats by $1.55M.
    | May 6, 2015, 4:58 PM
Company Description
KCAP Financial Inc is an internally managed closed-end investment company. The Company originates, structures and invests in senior secured term loans, mezzanine debt and privately-held middle market companies.