Seeking Alpha

Triangle Capital (TCAP)

  • Tue, Feb. 3, 3:44 PM
    • Lower interest rates hadn't really helped one of income players' favorite sectors as they were accompanied by the plunge in oil prices, and worry about what blowups were lurking in BDC portfolios.
    • So even with the 10-year Treasury yield higher by 11 basis points to 1.78% today, oil's now more than 20% run higher in the past few sessions looks to be easing some of those credit concerns, and alongside the rally in BDCs is a nice move higher in junk bonds (HYG +0.6%), (JNK +0.6%).
    • Individual names: Prospect Capital (PSEC +2.3%), Fifth Street Finance (FSC +3%), FS Investment (FSIC +1.6%), Main Street Capital (MAIN +2.4%), Apollo Investment (AINV +3%), Triangle Capital (TCAP +2.7%), TICC Capital (TICC +3%), PennantPark Investment (PNNT +3.8%), THL Credit (TCRD +3.5%), Golub Capital (GBDC +1.9%).
  • Dec. 17, 2014, 3:41 PM
    • Popular high-yield ETFs HYG and JNK are each ahead by 2% in today's session as the energy sector - which makes up a sizable portion of the high-yield universe posts a strong rally, with the XLE higher by 4.1%.
    • BDCs can sort of be considered the equity equivalents of junk bonds, and they're putting in a big rally today as well.
    • Prospect Capital (PSEC +1.5%), Main Street (MAIN +4.1%), Blackrock Kelso (BKCC +2.4%), Triangle Capital (TCAP +6.4%), KCAP Financial (KCAP +2.6%), THL Credit (TCRD +3.5%), Medley Capital (MCC +2.2%), Fifth Street Finance (FSC +1.5%)
  • Dec. 9, 2014, 12:57 PM
    • Unable to catch a bid for a few sessions, mortgage REITs (REM +1%) have turned higher in afternoon action, led by Annaly (NLY +0.7%) and American Capital Agency (AGNC +1.5%).
    • Helping are jitters in the stock market (though U.S. averages are well off the lows), and a 10-year Treasury yield that's retreated all the way to 2.21% after hitting the mid-2.30s on the back of Friday's strong jobs number.
    • Armour (ARR +1.1%), Two Harbors (TWO +0.9%), CYS Investments (CYS +1.4%), Invesco (IVR +1.8%), American Capital Mortgage (MTGE +1%), Hatteras Financial (HTS +2%), Capstead (CMO +2%).
    • Other ETFs: MORT, MORL
    • Also showing some green are the recently beaten-up BDCs, including Prospect Capital (PSEC +0.2%), Fifth Street Finance (FSC +0.2%), Ares Capital (ARCC +0.5%), FS Investment (FSIC), Triangle Capital (TCAP +1.7%).
    • Previously: Money flows back into fixed income (Dec. 9, 2014)
  • 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. 1, 2014, 11:17 AM
    • Fifth Street Finance (FSC -4.1%) reported mediocre FQ4 results earlier this morning, but nothing particularly out of line with the rest of the sector for the quarter ended September 30.
    • Nevertheless, the entire industry (BDCS -2.2%) is lit up red in mid-morning action: Prospect Capital (PSEC -3.7%), Ares Capital (ARCC -2.2%) FS Investment (FSIC -2.4%), Main Street (MAIN -2.1%), Triangle (TCAP -3.5%), OHA Investment (OHAI -3.8%), FIdus Investment (FDUS -4.2%), PennantPark Investmnet (PNNT -3.2%).
  • Nov. 6, 2014, 2:43 PM
    • Needless to say, the subject was the main topic of conversation on the earnings call Q&A (transcript), with analysts noting - among other things - that two of non-accruals have the same equity sponsor, and wondering if there's any systemic risk here. "The simple answer is no," says Triangle Capital (NYSE:TCAP) CIO Brent Burgess. "In these particular cases, we were not pleased with the quality or timeliness of the communications but beyond that, there is really no common threat."
    • TCAP remains sharply lower on the session, -11.2%.
    • Previously: Triangle Capital "challenges" with some legacy investments
    | 1 Comment
  • Oct. 17, 2014, 9:46 AM
    | Comment!
  • Oct. 10, 2014, 4:24 PM
    • "The sector's drawdown is 50% of what occurred in the 2011 euro-crisis without anything like the accompanying conditions," writes a bullish BDC Reporter, noting the sector is lower by about 14% since its February high, and stalwart Ares Capital (ARCC -3.1%) is trading at a discount to book value for the first time in years.
    • Another example is TCP Capital (TCPC -2.5%), down about 15% from a high hit three months ago. The company has paid out a steadily-increasing dividend since going public, current and future earnings are in excess of the payout, the balance sheet was recently strengthened with medium-term debt capital, the average cost of debt is 2.63%. and its investments yield 9.2%. What's not to like?
    • If the current benign business and credit cycle is indeed over, then BDCs have further to fall. If, as BDC Reporter believes, low rates are here to stay for awhile (and even if rates rise the BDC sector should prosper), BDCs are reaching bargain levels.
    • Today's action: Prospect Capital (PSEC -2.9%), Fifth Street Finance (FSC -3.5%), FS Investment (FSIC -3%), Apollo Investment (AINV -2.1%), Triangle Capital (TCAP -1.6%), THL Credit (TCRD -2%), OHA Investment (OHAI -4.2%).
  • Sep. 22, 2014, 2:55 PM
    • As income favorites, business development companies often catch a bid during broader market selloffs (and bond market rallies), but the small caps (IWM -1.3%) are bearing the brunt of today's selling and the BDCs tend to fall into the that sector (though excluded from Russell indices).
    • Fifth Street Finance (FSC -1.1%) has a market cap of $1.3B; Main Street Capital (MAIN -2.6%) - market cap of $1.4B; Apollo Investment (AINV -2%) - $2B; Triangle Capital (TCAP -1.3%) - $730M; Ares Capital (ARCC -0.4%) - $5.1B. Hanging in there better than the rest is Prospect Capital (PSEC -0.1%), with a $3.45B market cap.
  • Sep. 11, 2014, 8:09 AM
    • Noting the company's strong credit quality and low cost structure, analyst Jonathan Brock upgrades to Outperform from Market Perform, with price target range boosted to $28.50-$29.50 from $26.50-$28.
    • TCAP +0.75% premarket
    | Comment!
  • Aug. 12, 2014, 9:26 AM
    • The company sold 4.3M shares vs. the originally planned 4M. The shares were sold at $26.85 each and net proceeds are expected to be about $111M.
    • Source: Press Release
    • TCAP -3.6% to $26.65.
    | Comment!
  • Aug. 11, 2014, 5:38 PM
    | Comment!
  • Aug. 11, 2014, 4:26 PM
    • In addition to the 4M share offering, underwriters will be granted a greenshoe option for another 600K shares.
    • Source: Press Release
    • TCAP -3.4% AH
    • The company last week reported NAV per share of $21.03 as of June 30 vs. today's close of $27.64.
    | Comment!
  • Aug. 7, 2014, 3:17 PM
    • "We have found that our patience has been rewarded," says Triangle Capital (TCAP +2.7%) CFO Steven Lilly on the earnings call (transcript).
    • Triangle chose not to play in 2013's frothy conditions, leading to a decline in the investment portfolio (but realized gains on sales). 2014 has shifted back to healthier activity though, he says, and the company has taken advantage of good opportunities at attractive prices.
    • The management team, he adds, is becoming increasingly convinced 2014 could end up being one of the company's most active years in terms of new investments.
    • Raymond James upgrades the stock to Outperform with $30 price target following the quarter.
    • Previously: Triangle Capital expects to boost distribution by nearly 10%
    | 1 Comment
  • Jun. 26, 2014, 3:48 PM
  • Feb. 25, 2014, 10:35 AM
    • Amid the dropping of Prospect Capital (PSEC -3%) from the S&P SmallCap 600 and Apollo Investment from the S&P MidCap 400, the business development sector is reeling a bit.
    • Ares Capital (ARCC -1.5%), Main Street (MAIN -1.8%), Blackrock Kelso (BKCC -3.3%), Triangle (TCAP -2.2%), TICC Capital (TICC -1.2%), PennantPark (PNNT -2.7%), THL Credit (TCRD -1.2%), Hercules Technology (HTGC -2.6%).
    • See also: AINV with 12M share secondary
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Company Description
Triangle Capital Corporation is a speciality finance company. The Company provides customized financing solutions to lower middle market companies located in United States. Itlends to and invests in customers in various industries.
Sector: Financial
Country: United States