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Business Development Company Update 3-25-15

BDCs 03-25-15

Yield in the spreadsheet below is based on the Q2-15 'regular' dividend. Some BDCs have a regular pattern of paying special dividends. Spreadsheet header abbreviations: Div = dividend; EPS = earnings per share; LTM = last twelve months; YTD = year to date. The dividend to EPS ratio is a measure of dividend safety. Due to calendar and fiscal years failing to overlap, I also include a dividend to the sum of the last four quarters of NII - in the Div/NIIltm column. The last four columns measure the percentage change in the 2015 EPS projection; the change in the price target since the beginning of the year; the change in the Q1-15 dividend from the Q1-14 dividend; and the change in NAV between Q3-14 and Q3-13. Special dividends are not included in this data. SAR has gone back to paying quarterly dividends. Its Q1-15 dividend rises to $0.21/share from $0.18/share. PFLT's Q2 dividend will increase from $0.27 to $0.285/quarter; GAIN will increase from $0.05 to $0.06/month; KED from $0.520/quarter from $0.525; MAIN will increase its Q2 dividend from $0.170/month to $0.175/month; SAR from $0.18 to $0.22/quarter. FSC announced 2-9-15 it will drop its monthly dividend from $0.25/quarter to $0.18/quarter starting in March. MCC announced 2-9-14 it will drop from $0.37 in Q4-14 to $0.30/quarter in Q1-15. TICC announced 2-26 it will drop from to $0.29 in Q4-14 to $0.27/quarter in Q1-15. OHAI announced 3-12 it will drop from $0.16 to $0.12/quarter in Q2. KCAP announced 3-24 it will drop from $0.25 in Q1 to $0.21/quarter in Q2.


    Share Price   Div/ Div/ Div/ Div/ Q4-14 Price YTD Percent Change LTM LTM
Company_name_and_ticker 1-01 03-25 Yield EPS15 EPS16 NIIltm NAV NAV NAV Price Pr+Div EPS Target Div NAV

American Capital, Ltd. (NASDAQ:ACAS) 14.61 15.25 0.00 0.0 0.0 0.0 0.0 20.50 0.74 4.38 4.38 -1.30 -1.41 na 8.07
Apollo Investment Corporation (NASDAQ:AINV) 7.42 7.63 10.48 83.3 90.9 91.6 9.5 8.43 0.91 2.83 5.53 1.05 -8.17 0.00 -1.63
Ares Capital Corporation (NASDAQ:ARCC) 15.60 17.18 8.85 94.4 91.0 97.5 9.0 16.82 1.02 10.13 10.13 1.26 0.49 0.00 2.19
BlackRock Kelso Capital Corporation (NASDAQ:BKCC) 8.20 9.21 9.12 91.3 86.6 146.4 8.0 10.49 0.88 12.32 14.88 4.55 1.27 0.00 9.96
Fidus Investment Corporation (NASDAQ:FDUS) 14.85 16.46 9.23 92.1 88.9 94.1 10.0 15.16 1.09 10.84 12.38 -0.60 1.32 0.00 -1.24
Fifth Street Finance Corp. (FSC) 8.01 7.14 10.08 82.8 81.8 73.1 7.9 9.17 0.78 -10.86 -9.51 -17.14 -15.98 -27.97 -6.90
Full Circle Capital Corporation (FULL) 4.52 3.54 22.60 125.0 114.3 112.9 14.6 5.48 0.65 -21.68 -17.26 -9.86 -34.62 0.00 -22.71
Gladstone Investment Corporation (NASDAQ:GAIN) 7.00 7.43 9.69 94.7 96.0 93.7 8.4 8.55 0.87 6.14 7.86 7.04 0.00 20.00 0.71
Golub Capital BDC, Inc. (NASDAQ:GBDC) 17.93 17.76 7.21 100.0 94.1 102.5 8.2 15.55 1.14 -0.95 0.84 -2.29 0.00 0.00 2.10
Gladstone Capital Corporation (NASDAQ:GLAD) 8.27 9.02 9.31 101.2 100.0 94.9 9.0 9.31 0.97 9.07 10.76 -1.19 -5.56 0.00 -7.82
Horizon Technology Finance Corp (NASDAQ:HRZN) 13.99 13.69 10.08 101.5 95.2 118.1 9.6 14.36 0.95 -2.14 -0.66 -1.45 1.60 0.00 1.56
Hercules Technology Growth Capital (NASDAQ:HTGC) 14.88 13.76 9.01 111.7 89.9 98.3 12.2 10.18 1.35 -7.53 -5.44 -17.16 -8.06 0.00 -3.14
Kayne Anderson Energy Development (NYSE:KED) 35.74 29.97 7.01 82.4 78.4 93.4 6.3 33.14 0.90 -16.14 -14.68 0.00 -5.04 2.94 6.83
KCAP Financial, Inc. (NASDAQ:KCAP) 6.82 6.84 12.28 86.6 87.5 95.5 11.0 7.67 0.89 0.29 3.96 2.11 -11.43 -16.00 2.13
Main Street Capital Corporation (NYSE:MAIN) 29.24 31.07 6.76 91.3 86.4 100.3 10.1 20.85 1.49 6.26 7.42 -3.36 -1.61 6.06 4.83
Medley Capital Corporation (NYSE:MCC) 9.24 9.34 12.85 88.9 86.3 74.0 10.2 11.74 0.80 1.08 4.33 -8.78 -5.66 -18.92 -7.41

    Share Price   Div/ Div/ Div/ Div/ Q4-14 Price YTD Percent Change LTM LTM
Company_name_and_ticker 1-01 03-25 Yield EPS15 EPS16 NIIltm NAV NAV NAV Price Pr+Div EPS Target Div NAV

MCG Capital Corporation (NASDAQ:MCGC) 3.83 3.99 0.00 0.0 0.0 0.0 0.0 4.69 0.85 4.18 4.18 0.00 0.00 -100.00 -1.05
New Mountain Finance Corporation (NYSE:NMFC) 14.94 14.66 9.28 97.1 94.4 98.7 9.8 13.83 1.06 -1.87 -1.87 -2.10 -0.86 0.00 -3.82
Oak Hill Advisors (NASDAQ:OHAI) 4.69 5.22 9.20 129.7 111.6 119.9 6.4 7.48 0.70 11.30 14.71 0.00 0.00 -25.00 -18.70
Prospect Capital Corporation (NASDAQ:PSEC) 8.26 8.54 11.71 94.3 93.5 83.7 9.7 10.35 0.83 3.39 6.42 -2.75 -7.81 -24.81 -3.54
PennantPark Floating Rate Capital (NASDAQ:PFLT) 13.73 14.10 8.09 89.1 98.3 112.5 8.1 14.16 1.00 2.69 3.87 7.56 -0.80 5.56 -0.56
PennantPark Investment Corporation (NASDAQ:PNNT) 9.53 9.06 12.36 100.9 97.4 109.5 10.7 10.43 0.87 -4.93 -4.93 -3.48 -11.10 0.00 -3.43
Saratoga Investment Corp. (NYSE:SAR) 14.85 15.38 5.72 50.9 44.9 59.1 3.9 22.74 0.68 3.57 5.05 6.79 -5.00 na 10.01
Solar Capital Ltd. (NASDAQ:SLRC) 18.02 20.24 7.91 98.8 87.0 95.2 7.3 22.05 0.92 12.32 14.54 -1.22 0.27 0.00 -2.00
Solar Senior Capital Ltd. (NASDAQ:SUNS) 14.97 16.48 8.56 102.2 99.3 124.3 8.0 17.65 0.93 10.09 11.50 2.99 0.00 0.00 -2.16
Medallion Financial Corp. (TAXI) 10.01 9.77 9.83 81.4 78.0 106.6 8.6 11.16 0.88 -2.40 0.00 -1.67 0.00 0.00 1.92
Triangle Capital Corporation (NYSE:TCAP) 20.29 23.35 9.25 100.9 94.3 102.7 13.4 16.11 1.45 15.08 17.74 -2.28 -2.12 0.00 0.06
THL Credit, Inc. (NASDAQ:TCRD) 11.76 12.26 11.09 97.1 97.1 103.6 10.4 13.08 0.94 4.25 4.25 2.19 -3.96 0.00 -2.10
TICC Capital Corp. (TICC) 7.53 7.02 15.38 100.9 100.9 100.9 12.5 8.64 0.81 -6.77 -6.77 -5.31 -15.12 -6.90 -12.28

Sector Average     10.11 95.2     9.4   0.94 1.89 3.53 -1.60 -4.81

With the 10 Treasury at 1.92% and sector average yield (on Q2 dividends) at 9.75% - the spread is 819 bps.
The cap weighted ETF BDCS has a price change of 3.54% year to date - with dividends its total return is 5.65%.
Sector yield, Dividend/NAV and Dividend/EPS ratio filtering out the zero payout ACAS and MCGC.
Weeding out ACAS, the average share price change is 1.66%.
Weeding out KED, the average share price change is 1.96%.
BDC Earnings Growth & P/E Ratios 03-25

Fiscal and calendar years are not in sync. BDCs than began fiscal 2014 on or before calendar Q4-13 include AINV, FULL, FSC, GAIN, GBDC, GLAD, MCC, PSEC, PFLT, and PNNT. The range metric is the high estimate minus the low estimate, with that result dividend by the consensus estimate - and serves as one of several measurements for assessing risk. That average is currently inflated by almost 300 bps due to atypical spreads in the projections for ACAS and GAIN. With the exception of KED, all EPS projections are from Yahoo Finance.


  Earnings / Share Earn. Growth P/E Ratios Current Fiscal Year
Co. 2010 2011 2012 2013 2014 2015 2016 13-14 14-15 15-16 2014 2015 2016 High Low Range

ACAS 0.62 1.26 1.16 0.83 0.65 0.76 0.94 -21.69% 16.92% 23.68% 23.46 20.07 16.22 0.65 0.56 11.84%
AINV 1.26 0.99 0.83 0.83 0.91 0.96 0.88 9.64% 5.49% -8.33% 8.38 7.95 8.67 0.97 0.88 9.37%
ARCC 1.32 1.56 1.65 1.64 1.43 1.61 1.67 -12.80% 12.59% 3.73% 12.01 10.67 10.29 1.75 1.38 22.98%
BKCC 1.01 1.00 1.00 0.78 0.91 0.92 0.97 16.67% 1.10% 5.43% 10.12 10.01 9.49 0.90 0.70 21.74%
FDUS 0.00 1.63 1.54 1.37 1.62 1.65 1.71 18.25% 1.85% 3.64% 10.16 9.98 9.63 1.58 1.57 0.61%
FSC 0.95 1.01 1.07 1.01 0.99 0.87 0.88 -1.98% -12.12% 1.15% 7.21 8.21 8.11 1.14 0.96 20.69%
FULL 0.00 0.84 0.78 0.77 0.71 0.64 0.70 -7.79% -9.86% 9.37% 4.99 5.53 5.06 0.73 0.68 7.81%
GAIN 0.48 0.73 0.62 0.68 0.73 0.76 0.75 7.35% 4.11% -1.32% 10.18 9.78 9.91 0.72 0.70 2.63%
GBDC 0.00 1.16 1.15 1.29 1.26 1.28 1.36 -2.33% 1.59% 6.25% 14.10 13.88 13.06 1.33 1.28 3.91%
GLAD 0.84 0.88 0.91 0.88 0.87 0.83 0.84 -1.14% -4.60% 1.20% 10.37 10.87 10.74 0.84 0.84 0.00%
HRZN 0.00 1.50 1.41 1.39 1.11 1.36 1.45 -20.14% 22.52% 6.62% 12.33 10.07 9.44 1.12 1.11 0.74%
HTGC 0.80 0.91 0.97 1.23 1.13 1.11 1.38 -8.13% -1.77% 24.32% 12.18 12.40 9.97 1.24 1.17 6.31%
KED 1.25 1.36 1.89 2.20 2.38 2.55 2.68 8.18% 7.14% 5.10% 12.59 11.75 11.18 2.37 2.37 0.00%
KCAP 0.53 0.70 0.89 0.91 0.97 0.97 0.96 6.59% 0.00% -1.03% 7.05 7.05 7.13 0.97 0.97 0.00%
MAIN 1.00 1.69 2.01 2.02 2.20 2.30 2.43 8.91% 4.55% 5.65% 14.12 13.51 12.79 2.19 2.17 0.87%
MCC 0.00 0.56 1.31 1.53 1.58 1.35 1.39 3.27% -14.56% 2.96% 5.91 6.92 6.72 1.62 1.31 22.96%

  Earnings / Share Earn. Growth P/E Ratios Current Fiscal Year
Co. 2010 2011 2012 2013 2014 2015 2016 13-14 14-15 15-16 2014 2015 2016 High Low Range

MCGC 0.60 0.53 0.25 0.44 0.06 0.05 0.05 -86.36% -16.67% 0.00% 66.50 79.80 79.80 0.09 0.02 140.00%
NMFC 0.00 0.56 1.35 1.52 1.41 1.40 1.44 -7.24% -0.71% 2.86% 10.40 10.47 10.18 1.44 1.43 0.71%
OHAI 0.54 0.73 0.55 0.64 0.61 0.37 0.43 -4.69% -39.34% 16.22% 8.56 14.11 12.14 0.37 0.37 0.00%
PSEC 1.09 1.09 1.63 1.57 1.19 1.06 1.07 -24.20% -10.92% 0.94% 7.18 8.06 7.98 1.30 1.04 24.53%
PFLT 0.00 0.05 1.01 1.10 1.12 1.28 1.16 1.82% 14.29% -9.38% 12.59 11.02 12.16 1.23 1.15 6.25%
PNNT 1.09 1.25 1.08 1.01 1.06 1.11 1.15 4.95% 4.72% 3.60% 8.55 8.16 7.88 1.18 1.10 7.21%
SAR 4.57 2.15 1.86 1.86 1.85 1.73 1.96 -0.54% -6.49% 13.29% 8.31 8.89 7.85 1.62 1.62 0.00%
SLRC 2.08 2.25 2.20 1.89 1.56 1.62 1.84 -17.46% 3.85% 13.58% 12.97 12.49 11.00 1.57 1.53 2.47%
SUNS 0.00 0.63 1.31 1.18 1.20 1.38 1.42 1.69% 15.00% 2.90% 13.73 11.94 11.61 1.17 1.15 1.45%
TAXI 0.64 1.01 1.21 1.14 1.14 1.18 1.23 0.00% 3.51% 4.24% 8.57 8.28 7.94 1.14 1.11 2.54%
TCAP 1.58 2.06 2.16 2.25 2.08 2.14 2.29 -7.56% 2.88% 7.01% 11.23 10.91 10.20 2.07 2.03 1.87%
TCRD 0.00 1.04 1.38 1.45 1.42 1.40 1.40 -2.07% -1.41% 0.00% 8.63 8.76 8.76 1.41 1.39 1.43%
TICC 0.89 0.94 1.12 1.04 1.05 1.07 1.07 0.96% 1.90% 0.00% 6.69 6.56 6.56 1.12 1.11 0.93%

BDC Average           -4.75 0.19 4.96 12.38 12.69 12.15     11.10

Disclosure: The author is long AINV, ARCC, MAIN, PFLT, PNNT.