BDC REPORTER NEWS FEED


8/10/2020: FS KKR Capital II Reports IIQ 2020 Results - First Look

8/10/2020: FS KKR Capital II Reports IIQ 2020 Results - First Look

FIRST LOOK:

fskkrcapitalcorp2.gcs-web.com
8/11/2020: Barings BDC To Acquire MVC Capital - BREAKING NEWS

8/11/2020: Barings BDC To Acquire MVC Capital - BREAKING NEWS

FIRST LOOK: In the second act of the great winnowing of the number of public BDCs (first was/is the merger of PTMN into GARS) MVC will be absorbed into the much bigger BBDC in return for full book value but paid essentially only in the buyer's stock. The overall package is very generous to MVC's shareholders - including a 10 year,$23mn credit support for any bad investments in the acquiree's portfolio (a distinct possibility) - and will surely move MVC's stock and Baby Bond (MVCD) prices up. Less clear is the benefit to BBDC itself, whose stock has sharply dropped in the pre-market. Nonetheless, the management team at BBDC are a well heeled, experienced group so the BDC Reporter is giving them the benefit of the doubt and will be listening to the conference call at 11 EST that will shed more light on this dramatic new development. We'll follow up with an analysis for Premium subscribers shortly thereafter.

ir.barings.com
8/10/2020: Golub Capital Announces IIQ 2020 Results - Press Release

8/10/2020: Golub Capital Announces IIQ 2020 Results - Press Release

IIQ 2020 Results; GOOD

golubcapitalbdc.com
8/10/2020: WhiteHorse Finance Announces IIQ 2020 Results -Press Release

8/10/2020: WhiteHorse Finance Announces IIQ 2020 Results -Press Release

IIQ 2020 Results: GOOD

whitehorsefinance.com
8/5/2020: TriplePoint Venture Growth Announces IIQ 2020 Results - Press Release

8/5/2020: TriplePoint Venture Growth Announces IIQ 2020 Results - Press Release

IIQ 2020 Results: GOOD

investor.tpvg.com
8/4/2020: Sixth Street Specialty IIQ 2020 Results

8/4/2020: Sixth Street Specialty IIQ 2020 Results

IIQ 2020 Results: GOOD

sixthstreetspecialtylending.gc
8/4/2020: TCG BDC IIQ 2020 Results - Press Release

8/4/2020: TCG BDC IIQ 2020 Results - Press Release

IIQ 2020 Results: GOOD

ir.tcgbdc.com
8/4/2020: Solar Senior Capital Announces IIQ 2020 Results - Press Release

8/4/2020: Solar Senior Capital Announces IIQ 2020 Results - Press Release

IIQ 2020 Results: GOOD

seekingalpha.com
8/4/2020: Solar Capital IIQ 2020 Results - Press Release

8/4/2020: Solar Capital IIQ 2020 Results - Press Release

IIQ 2020 Results: GOOD

solarcapltd.com
8/7/2020: Apollo Investment: IIQ 2020 Conference Call Transcript - Annotated

8/7/2020: Apollo Investment: IIQ 2020 Conference Call Transcript - Annotated

FEATURED ARTICLE: After a poor quarter, the BDC Reporter annotates AINV's conference call transcript.

bdcreporter.com
8/7/2020: Medley Capital  Announces IIQ 2020 Results

8/7/2020: Medley Capital Announces IIQ 2020 Results

FIRST LOOK: Judging only by the IIQ 2020 results, MCC's performance was FAIR. Not so good: Net Investment Income was negative - despite credits on legal costs and a cap on operating costs agreed with the manager. With a third of the portfolio in non income producing investments, MCC's expenses are far outstripping income. Obviously that leaves no room for a dividend for the sixth quarter in a row. A little better: the total fair market value of the remaining portfolio increased in the period, increasing NAV per share. Liquidity, too, is good with over $50mn sitting in cash and the only debt remaining the two Baby Bonds. We've not yet undertaken a Credit Review, but the last time we checked almost half the BDC's assets were underperforming, so we expect our internal rating will remain POORThe Long Term Outlook for the BDC remains as POOR as ever, even with the recent 20:1 reverse stock split and an activist pushing for debt and stock buybacks.

medleycapitalcorp.com
8/6/2020: Main Street Capital Reports IIQ 2020 Results - Press Release

8/6/2020: Main Street Capital Reports IIQ 2020 Results - Press Release

IIQ 2020 Results: GOOD

ir.mainstcapital.com
8/6/2020: Fidus Investment IIQ 2020 Results - First Look

8/6/2020: Fidus Investment IIQ 2020 Results - First Look

FIRST LOOK: Last quarter FDUS was worried about the future; placed several companies on non accrual prospectively and cut its dividend. In the IIQ 2020 FDUS discovered that things were not so bad; returned 2 companies to accruing status and earned Net Investment Income Per Share greater than same time last year and well over the lowered $0.30 distribution. Net Asset Value Per Share increased - admittedly only slightly - but overall the mood was positive at the lower middle market focused BDC. Liquidity - in the form of cash and unused borrowing capacity was also GOOD

investor.fdus.com
8/6/2020: Apollo Investment Reports IIQ 2020 Results - First Look

8/6/2020: Apollo Investment Reports IIQ 2020 Results - First Look

FIRST LOOK: AINV's results were undeniably POOR. While most BDCs saw book value increase after the big drop in the IQ of the year, AINV's dropped by (2.6%). Net Investment Income Per Share held up pretty well, but only because overall performance was so poor that no incentive fee was earned in the period. Yet another company saw one of its loan tranches added to the non accrual list. Then there was a restructuring needed at AINV's biggest - and now most problematic investment - Merx Aviation. That reduced book value and - more importantly - income. Most notably of all, AINV gave up trying to maintain its $0.45 a quarter dividend and switched to a new concept: a regular payout of $0.31 and a "special" , to begin at $0.05. In doing so management explicitly conceded that AINV consists of two parts: a (relatively) well performing portfolio of middle market portfolio loans (including - inconsistently - Merx) and poorly performing "Legacy" assets.

apolloic.com
8/6/2020: BlackRock TCP Capital: IIQ 2020 Results - First Look

8/6/2020: BlackRock TCP Capital: IIQ 2020 Results - First Look

BDC REPORTER - FIRST LOOK: TCPC does everything right in the IIQ 2020 results, with one notable exception. Here is the BDC Reporter's first look.

bdcreporter.com
8/6/2020: Apollo Investment Reports IIQ 2020 Results - First Look

8/6/2020: Apollo Investment Reports IIQ 2020 Results - First Look

FIRST LOOK: AINV's results were undeniably POOR. While most BDCs saw book value increase after the big drop in the IQ of the year, AINV's dropped by (2.6%). Net Investment Income Per Share held up pretty well, but only because overall performance was so poor that no incentive fee was earned in the period. Yet another company saw one of its loan tranches added to the non accrual list. Then there was a restructuring needed at AINV's biggest - and now most problematic investment - Merx Aviation. That reduced book value and - more importantly - income. Most notably of all, AINV gave up trying to maintain its $0.45 a quarter dividend and switched to a new concept: a regular payout of $0.31 and a "special" , to begin at $0.05. In doing so management explicitly conceded that AINV consists of two parts: a (relatively) well performing portfolio of middle market portfolio loans (including - inconsistently - Merx) and poorly performing "Legacy" assets.

apolloic.com
8/6/2020: Bain Capital Specialty Finance: IIQ 2020 Results - First Look

8/6/2020: Bain Capital Specialty Finance: IIQ 2020 Results - First Look

BDC REPORTER- BRIEF: The BDC Reporter was in two minds about how to rate Bain Capital Specialty Finance's IIQ 2020 financial performance. We explain the decision made in the context of the information available in the press release and investor presentation, both attached.

bdcreporter.com
8/5/2020: Gladstone Investment readies debt offering

8/5/2020: Gladstone Investment readies debt offering

BDC FIXED INCOME NEWS: GAIN is launching a continuous public offering of up to $350M of its 6.00% notes due 2040 at an offering price of $25/share.

seekingalpha.com
8/5/2020: Newtek Business Reports IIQ 2020 Results - Press Release

8/5/2020: Newtek Business Reports IIQ 2020 Results - Press Release

IIQ 2020 Results: GOOD

investor.newtekbusinessservice
8/5/2020: New Mountain Finance IIQ 2020 Results - Press Release

8/5/2020: New Mountain Finance IIQ 2020 Results - Press Release

IIQ 2020 Results: GOOD

ir.newmountainfinance.com
8/5/2020: PennantPark Investment Results For IIQ 2020

8/5/2020: PennantPark Investment Results For IIQ 2020

FIRST LOOK: Overall, PNNT fared pretty well on paper in the IIQ 2020. Like most every BDC big and small Net Asset Value Per Share increased over the prior period. Moreover, Net Investment Income Per Share "covered" the dividend, but if not for temporary waivers of Incentive Fees by the manager earnings and payouts would have been roughly equal.(If you take out PNNT's substantial Pay In Kind income, the BDC is already in deficit on a cash P&L basis). GAAP leverage continues to be very high thanks to not having to count SBA debt as real leverage.

Liquidity seems to have greatly improved and we upgrade the rating in this key category from POOR to GOOD. However, coming up is the spin-off of a great deal of the BDC's on balance sheets assets into a newly established JV which will drastically remake the income statement and balance sheet. We have a lot of questions about the JV and hope to get answers in the Q and in the upcoming CC.

pnnt.pennantpark.com
8/4/2020: Owl Rock Capital IIQ 2020 Results: First Look

8/4/2020: Owl Rock Capital IIQ 2020 Results: First Look

FIRST LOOK: Most everything went well for ORCC is the IIQ 2020. Like many of its peers Net Asset Value Per Share increased after the prior quarter's precipitous decline. Liquidity remained amongst the highest - if not the highest - in the public BDC space. There are only two non accruals in a 102 company portfolio. Using the BDc's own ratings, less than 15% of assets are "underperforming", earning the BDC a GOOD rating where credit is concerned. Even Net Investment Income Per Share - at first glance - looks relatively strong at $0.34, just $0.03 from the last quarter. However, EPS is achieved only thanks to huge and very generous fee waivers by the manager. Shareholders say thank-you but worry about how long ORCC will take to "earn" even its regular dividend. Thankfully, ORCC is only halfway to the upper range of its Target Leverage...Anyway, this is but a First Look. Will read 10-Q, listen to CC and follow-up with Featured Article.

ir.owlrockcapitalcorporation.c
8/4/2020: Capitala Finance Reports IIQ 2020 Results - First Look

8/4/2020: Capitala Finance Reports IIQ 2020 Results - First Look

VIEWS: Yes, CPTA did see NAV Per Share modestly increase in the IIQ 2020 over the prior quarter and the number of non accruals were reduced by booking realized losses. Otherwise,though, the financial picture remains bleak with the BDC losing money at the Net Investment Income line; continuing not to pay a dividend; no source of secured debt financing and no clear plan going forward except for a 6:1 reverse stock split and a scheme to buy back $10mn of its outstanding Baby Bond or Convertible debt. Surely, the Board and manager have more of a plan than that ? In any case, we rate the quarter's results POOR and the outlook likewise, even if Liquidity is GOOD thanks to the gradual liquidation of the portfolio.

investor.capitalagroup.com
8/4/2020: PennantPark Investment Corporation Announces JV

8/4/2020: PennantPark Investment Corporation Announces JV

VIEWS: We've read the PNNT press release several times now and cannot decide if this spinning off of a quarter of the BDC's most liquid, better performing assets into a separate entity is a Good Thing or not. The market appears to be happy, with PNNT's stock price up, presumably delighted the BDC has attracted - indirectly - some capital and partly de-leveraged itself. For our part, we're not sure if this is a Good Bank-Bad Bank gambit, with PNNT's shareholders left with the latter. However, this move does support the BDC Reporter's oft mentioned point that the 10-12 BDCs that are deeply underperforming are going to need to remake themselves to survive. Easy to say, hard to do and each BDC will choose a different path. See PSEC's Perpetual Preferred yesterday and PNNT's JV today.

pnnt.pennantpark.com
8/4/2020: Ares Capital Reports IIQ 2020 Results - First Look

8/4/2020: Ares Capital Reports IIQ 2020 Results - First Look

FIRST LOOK: There were no great surprises in the ARCC IIQ 2020 results, with Net Investment Income Per Share pipping analyst expectations by 1 cent toi $0.39; NAV Per Share increasing from the prior quarter but still down ($1bn) and low investment activity in the quarter. Leverage dropped back to well below the BDC's moderate target; the dividend was left unchanged for a 7th quarter in a row. However, the absence of a Total Return feature in the BDC's compensation arrangement was strongly felt by shareholders: Incentive Fees were $0.10 cents a share, suppressing Net Investment Income by a corresponding amount even as book value remains nearly a tenth below the 2019 closing level. Anyway, we still need to review 10-Q and listen to CC, but initial results rating is GOOD.

arescapitalcorp-ir.com
8/3/2020: Benevis Holdings : Files Chapter 11

8/3/2020: Benevis Holdings : Files Chapter 11

BDC CREDIT REPORTER ARTICLE: On August 3, 2020 dental support business Benevis Holdings filed voluntary Chapter 11.

NMFC
CCR 5/Bankruptcy

bdccreditreporter.com
8/3/2020: Prospect Capital Launches Perpetual Preferred Stock - First Look

8/3/2020: Prospect Capital Launches Perpetual Preferred Stock - First Look

VIEWS: Whatever else one can say about PSEC, there's no denying the creativity of their management team. Out of the blue, the BDC has announced its intention to raise a whopping $1.0bn by way of a never-done-before in the BDC sector Perpetual Stock Offering. Yes, PSEC fans you can now invest in your favorite BDC forever, and be paid 5.5% per annum in monthly increments. Attached here is the press release but we're also reading the prospectus and all the small print to understand how this might work. Initial reaction: Good news for existing unsecured debt holders (preferred is subordinated to their debt) ; bad news for shareholders who could be hugely diluted if PSEC decides to convert preferred into stock in the future when price is low. Not our final view. Still, we wonder why PSEC has suddenly chosen this road never previously traveled ?

prospectstreet.com
8/3/2020: Capital Southwest Announces Results for IIQ 2020 - First Look

8/3/2020: Capital Southwest Announces Results for IIQ 2020 - First Look

VIEWS: CSWC managed to book 2 new deals; grow its portfolio and it investment income over the prior quarter, a rare achievement in the current environment. We've not yet seen a 10-Q or listened to the CC, but credit quality appears to have stabilized in the period going by CSWC's own company ratings. No new non accruals added and that leaves 3 non performers (all Upper Middle Market), down from 4 but only (we believe) due to a realized loss. Leverage is on the high side and we don't have a clear take on liquidity (this is a First Look after all), so there are clouds in the sky. Still, the BDC has been bold enough to maintain the same current and "special dividend" through September and NIIPS is only 1 cent below the former. We rate the IIQ performance as GOOD and maintain a long term outlook of GOOD as well, one of only a dozen BDCs.

ir.capitalsouthwest.com
8/3/2020: Le Tote: Files Chapter 11

8/3/2020: Le Tote: Files Chapter 11

BDC CREDIT REPORTER ARTICLE: T On August 2, 2020 Le Tote Inc. , which owns Lord & Taylor, filed for Chapter 11. This is a notable setback for the two Carlyle Group BDCs which includes CGBD, with $28mn in total exposure - all in second lien debt.

CGBD/CGBD II/HRZN
CCR 5/Bankruptcy

bdccreditreporter.com
8/3/2020: Stellus Capital: IIQ 2020 Conference Call Transcript - Annotated - BDC Reporter

8/3/2020: Stellus Capital: IIQ 2020 Conference Call Transcript - Annotated - BDC Reporter

FEATURED ARTICLE: The BDC Reporter annotates Stellus Capital's IIQ 2020 conference call transcript and finds many positive developments as well as some things to worry about.

bdcreporter.com
8/3/2020: JPMorgan cuts FS KKR to Neutral

8/3/2020: JPMorgan cuts FS KKR to Neutral

BDC NEWS: Seeking Alpha reports JPMorgan analyst Richard Shane has downgraded FS KKR Capital to Neutral. FSK opened Monday 8/3/2020 at $15.90.

seekingalpha.com
8/2/2020: Men’s Wearhouse Inc. Files Chapter 11

8/2/2020: Men’s Wearhouse Inc. Files Chapter 11

BDC CREDIT REPORTER ARTICLE: On August 2, 2020 Tailored Brands – the parent of Men Wearhouse Inc. – filed Chapter 11. We're re-publishing this BDC Credit Reporter article for two reasons. First, a public BDC has exposure to the men's clothing retailer: Barings BDC (BBDC). Second, this is the first BDC-financed bankruptcy of August, after 10 in July and 41 YTD. We'll be bringing every bankruptcy involving BDCs to readers attention from here on in.

BBDC
CCR 5/Bankruptcy

bdccreditreporter.com
8/2/2020: Mood Media Files Chapter 11

8/2/2020: Mood Media Files Chapter 11

BDC CREDIT REPORTER ARTICLE: As the company promised back on June 26, 2020 when we last wrote, Mood Media Inc. has filed for Chapter 11 bankruptcy.

ANALYSIS: This is a Major credit (i.e.over $100mn) and the key lenders are FS KKR Capital (FSK) and sister public BDC FS KKR Capital II or FSKR. Realized losses are projected by the BDC Credit Reporter to be high. Some of the debt held, though, was already on non accrual as of IQ 2020.

FSK/FSKR/BDCA
CCR 5/Bankruptcy

bdccreditreporter.com
7/31/2020: OFS Capital IIQ 2020 Results - First Look

7/31/2020: OFS Capital IIQ 2020 Results - First Look

A first look at troubled BDC OFS Capital's IIQ 2020 results.

PERFORMANCE : FAIR
LIQUIDITY: POOR
CREDIT : TBD

bdcreporter.com
7.30/2020: Furniture Factory Outlet: Business Update

7.30/2020: Furniture Factory Outlet: Business Update

BDC CREDIT REPORTER ARTICLE: Furniture retailer Furniture Factory Outlet Inc. was placed on non accrual by its lenders during the IIQ 2020, and rated CCR 5 by the BDC Credit Reporter.

SCM
CCR 5

bdccreditreporter.com
7/30/2020: Capital Southwest Receives "Green Light" from SBA

7/30/2020: Capital Southwest Receives "Green Light" from SBA

VIEWS: This is important news for CSWC and its future balance sheet and strategy. This will be its first SBA license and allow for the eventual borrowing of AT LEAST $175mn in SBIC debentures or $350mn if multiple licenses are granted over time. Initially that means more than $250mn in assets will be formally dedicated to the Lower Middle Market (LMM), where CSWC has a recognized presence and some early successes. This SBIC financing is at the lowest rates in years - maybe ever, and will help diversify funding sources alongside the Baby Bonds and secured borrowings. IF CSWC can keep out of credit trouble and find enough deals for its pipeline, the half billion BDC can become a three quarter billion player before long and $1.0bn is in sight. You might have to use a telescope, but it's possible. Which makes all the more interesting CSWC's upcoming earnings release.

ir.capitalsouthwest.com
7/31/2020: Capitala Finance Stock Price At New All Time Low

7/31/2020: Capitala Finance Stock Price At New All Time Low

NEWS: Intra-day CPTA dropped to 2.15, which is a new all-time and 52 week low, making the BDC one of the few scraping the price bottom.

ANALYSIS: This new low follows a strange - and unsustained - jump in CPTA's price a few days ago which the BDC Reporter brought to readers attention. The stock reached as high as $3.16 but has now fallen back by (32%) in a very short time span.

finance.yahoo.com
7/31/2020: Stellus Capital IIQ 2020 Results - First Look

7/31/2020: Stellus Capital IIQ 2020 Results - First Look

VIEWS: Judging from the tone of SCM's IIQ 2020 earnings press release, the BDC is feeling more confident than last quarter when the dividend was switched from monthly to quarterly; the dividend was cut and liquidity was tight. This time round NAV Per Share is sharply up compared to its BDC peers; the dividend has been confirmed at $0.25; liquidity seems improved. Heck, Net Investment Income is even higher this quarter than same time last year thanks to lower fees. Nonetheless, shareholders will remember the payout is (26%) lower than pre-pandemic and SCM's leverage remains high on a GAAP basis (net debt to equity) is 1.41x.

PERFORMANCE: GOOD
LIQUIDITY: Upgraded to FAIR from POOR
CREDIT: GOOD

stelluscapital.com
7/31/2020: OFS Capital IIQ 2020 Results - First Look

7/31/2020: OFS Capital IIQ 2020 Results - First Look

VIEWS: Everything is relative. Because OFS had cut its dividend by 50% last quarter and seen its NAV Per Share drop (22%) worries were high and expectations low for the second quarter. In fact, NAV Per Share increased marginally, largely thanks to the value of equity gains (strange in a recession) and CLO investments appreciation. As importantly, only one more company went on non accrual (6 now ?). Net Investment Income was sharply down from prior periods but sensibly above the new dividend level. OFS remains highly leveraged on a GAAP basis and even on a regulatory basis but marginally less so.

PERFORMANCE: FAIR
LIQUIDITY: POOR
CREDIT: TBD

ir.ofscapitalcorp.com
7/30/2020: Hercules Capital IIQ 2020 Results - First Look

7/30/2020: Hercules Capital IIQ 2020 Results - First Look

VIEWS: No BDC provides as many numbers on their earnings press release than HTGC. However, once we worked through them all, it's clear that HTGC- like HRZN a day earlier - performed well in the three months after Covid-19 came on the scene. Book value per share increased; Net Investment Income Per Share covered the dividend despite less business activity; non accruals worsened only slightly; leverage was reasonable by historic standards; portfolio yields were in line with prior periods and the portfolio reached a record size. Furthermore, liquidity remained strong. Still, investors seem to have concerns as the stock price has been dropping of late and lurched lower in the aftermarket once the results were published. We still need to credit review portfolio.

PERFORMANCE: GOOD
LIQUIDITY: GOOD
CREDIT: TBD

investor.htgc.com
7/30/2020: California Pizza Kitchen Files Chapter 11

7/30/2020: California Pizza Kitchen Files Chapter 11

BDC CREDIT REPORTER ARTICLE: On July 30, 2020 California Pizza Kitchen (aka CPK) filed for Chapter 11.

VIEWS: A material set-back for all 6 public BDCs involved, but principally for Great Elm (GECC); Capitala Finance (CPTA) and Main Street (MAIN). Second lien debt held is probably a complete loss and first lien debt will largely become non income producing. Several BDCs, though, had their debt already on non accrual. Also notable for being the ninth bankruptcy of a BDC financed company in July.

CPTA, CSWC, GECC, MAIN, MRCC, OCSL & TP Flexible Income
CCR 5/Bankruptcy

bdccreditreporter.com
7/29/2020: Gladstone Capital Reports Calendar IIQ 2020 Results

7/29/2020: Gladstone Capital Reports Calendar IIQ 2020 Results

VIEWS: Where sister BDC Gladstone Investment (GAIN) had unedifying results in the quarter, GLAD came out smelling like roses from a difficult period. NAV Per Share increase; Net Investment Income Per Share matched the new (admittedly reduced) dividend; there was only one non accrual on the books with no new additions and several new investments were made, growing the yielding asset base. We also learned on the CC that 3 companies - not named - greatly improved on a credit basis in the period. With all that GLAD remains only moderately leveraged at 1:1 by their calculation. No wonder the BDC has been trading above book value of late. Nonetheless, management is not breaking out the champagne or making any wild plans, recognizing that the environment remains harshi and this quarter's BDC success could be the third quarter's dud.

PERFORMANCE: GOOD
LIQUIDITY: GOOD
CREDIT: GOOD

gladstonecapital.com
7/29/2020: BlackRock Capital Investment Reports IIQ 2020 Results

7/29/2020: BlackRock Capital Investment Reports IIQ 2020 Results

BDC NEWS: NAV drops (9.5%) to $4.84 as two major investments marked down including asset-backed Gordon Brothers Finance; shareholders approve higher leverage; dividend being paid 80% in cash.

VIEWS: BKCC cannot find the bottom. Another quarter and another lurch downward in net book value for the beleaguered BDC. The problems at Gordon Brothers - a highly leveraged ABL group - is a new and significant development. Leverage may not be high and the net investment income per share may be "covering" the recently reduced dividend but the question remains: when will BKCC stabilize ? Since the end of 2017 net book value per share - despite buyback program - is off (38%). Book value has dropped the last 5 quarters in a row.

PERFORMANCE: POOR
LIQUIDITY: GOOD
CREDIT: POOR

blackrockbkcc.com
7/29/2020: Gladstone Investment: Dividend Comments On CC

7/29/2020: Gladstone Investment: Dividend Comments On CC

VIEWS: On the GAIN Conference Call, the CEO would not be drawn on whether the dividend would be reduced or the bi-annual special dividend suspended given the much lower current Net investment income per share. Chairman Gladstone, though, signalled that cutting the dividend would be a very last move, jokingly saying "hush your mouth" when a questioner mentioned the possibility. We have predicted the GAIN dividend (and the special) will remain UNCHANGED but the odds are now 50/50 and may depend on if there are any new deals out there to be booked. David Gladstone hopes to book "a couple" but we hear the market is very, very quiet.

gladstoneinvestment.com
7/28/2020: Horizon Technology Announces IVQ 2020 Dividends

7/28/2020: Horizon Technology Announces IVQ 2020 Dividends

BDC NEWS: The monthly dividend is unchanged at $0.10 for the last 3 months of the year. HRZN has now paid/announced the same dividend for 17 quarters.

VIEWS: Reflecting HRZN's confidence or chutzpah, the BDC has already announced an unchanged distribution of $0.30 for the final quarter of 2020. For the BDC Reporter this confirms our Dividend Rating of UNCHANGED for 2020 that we've been projecting since March, which can be found in the BDC Data Table.

ir.horizontechfinance.com
7/28/2020: Horizon Technology Finance Announces IIQ 2020 Results

7/28/2020: Horizon Technology Finance Announces IIQ 2020 Results

BDC NEWS: NAV up; portfolio yield high; NIIPS strongly covering the dividend and liquidity still plentiful for HRZN. One more non accrual, but overall performance in IIQ was very good and exceeded analyst earnings expectations.

VIEWS: In advance of listening to the conference call but after reviewing investment portfolio list, HRZN's superior performance continues. Unlike some of its peers HRZN has found the time and capital to book new deals and seems to have plenty of liquidity to grow the business further.

PERFORMANCE: GOOD
LIQUIDITY: GOOD
CREDIT: GOOD

ir.horizontechfinance.com
7/28/2020: Oxford Square IIQ 2020 Earnings Transcript - Annotated

7/28/2020: Oxford Square IIQ 2020 Earnings Transcript - Annotated

FEATURED ARTICLE: OXSQ kicks off second quarter 2020 BDC conference calls with a close to the vest presentation of results that seemed pretty good considering the circumstances. The BDC Reporter annotates the conference call transcript.

VIEWS: There's little "color" offered by OXSQ's management on their quarterly conference calls but the BDC Reporter does it best to tease out what's available between the press release, investor presentation and the CC transcript.

bdcreporter.com
7/28/2020: Gladstone Investment Reports IIQ 2020 Results

7/28/2020: Gladstone Investment Reports IIQ 2020 Results

ANALYSIS: The BDC Credit Reporter identified 13 underperformers, representing 37% of investment assets in the IIQ 2020 portfolio. Non performers alone account for $95mn of assets at cost.

VIEWS: Both sides now. During the Good Old Days GAIN benefited from investing in and selling off many of its LMM portfolio companies. Now these smaller companies - many of which had problems before Covid-19 - are defaulting or being written down and no winners will be booked for awhile. Will this cause GAIN to cut its dividend or take time to regroup; redeploy plentiful capital into new loans (incremental income) and turn around the underperformers, but keep its payout (and the faith of its retail base) ? We remain long term bullish. GAIN has been through worse become and come out smelling like roses. Short term, though, both the results and credit are poor.

PERFORMANCE: POOR
LIQUIDITY: GOOD
CREDIT: Downgraded to POOR from GOOD

gladstoneinvestment.com
7/28/2020: Oxford Square Announces IIQ 2020 Results

7/28/2020: Oxford Square Announces IIQ 2020 Results

ANALYSIS: Very little in the way of change where leverage, non accruals, number of portfolio investments etc and a 6.6% increase in NAV Per Share. NIIPS down to $0.09, two cents below the 1 analyst prediction. Cash, though, nearly tripled to over $20mn.

VIEWS: As always OXSQ held low key CC, with no 10-Q available or even mentioned and only one analyst asking questions and given somewhat curt answers. "Here's your hat, what's your hurry ?" atmosphere. Nonetheless, no obvious disaster with only a few CLOs with interrupted income as yet and no change in credit as far as we can tell.

PERFORMANCE: FAIR
LIQUIDITY: Upgraded to FAIR from POOR
CREDIT: POOR

ir.oxfordsquarecapital.com
7/27/2020: APC Automotive Technologies Completes Restructuring

7/27/2020: APC Automotive Technologies Completes Restructuring

BDC CREDIT NEWS: APC Automotive Technologies, LLC, together with certain of its subsidiaries, announced it has successfully implemented adebt restructuring. BDC Credit Reporter last wrote about company 6/3/2020: https://bit.ly/3jL6ZuQ

Now upgrading the company to CCR 3 from CCR 5 given debt for equity swap and new capital. Not certain of BDC roles going forward but non-traded Cion was only one with material exposure.

Cion/CCAP
Upgraded to CCR 3 from CCR 5

thebrakereport.com
BDC Reporter - News Feed