News, Analysis, Views
The BDC Credit Report- a publication of the BDC Reporter- tracks hundreds of under-performing public and private companies in which Business Development Companies have invested debt and/or equity and updates readers on all news developments on a daily basis. In addition, the BDC Credit Reporter provides data on the amount and type of BDC exposure and the prospects for incurring realized losses in the future.
TSLX: The only BDC with exposure - TPG Specialty - has a $21.6mn at cost First Lien Loan, valued at par at March 31 2018. Given the senior nature of the obligation, the proposed asset sale should ensure full repayment even in liquidation of Rex Energy over the next few months. TSLX will be losing a credit earning 11.06% (LIBOR + 875bps) in the second or third quarter 2018. If no loss incurred, this will validate TSLX's strategy of investing in asset based senior positions in "difficult" credits.
ABDC,TCAP: Total exposure by the two remaining BDC lenders - both invested in the non-performing Second Lien debt - aggregates $31.570mn at cost. That's been essentially written off at both firms. No recovery is expected from the investment. Expect Realized Losses in the IIQ 2018 results.
AINV,Cion: Elements Behavioral Health announced it is filing chapter 11 bankruptcy and will restructure the company. According to executives, all clinical programs will remain in place during the process. BDC Exposure: The two related BDCs have senior debt exposure of $18mn in second lien debt to the Company, as recorded by Advantage Data.The loans have been on non-accrual for 3 quarters. Both BDCs have written down the debt to zero. Nothing in the press release suggests any recovery will occur. Realized Losses are likely to be booked in the third or fourth quarter 2018.
TSLX: Rex Energy Corporation is filing for bankruptcy after missing a payment to lenders in April.
TCRD, Cion, Sierra: The troubled retailer emerged from bankruptcy with THL Credit as its major investor. A new CEO was appointed. No details were given as to the new financial structure.
ABDC: The expansion of this logistics company into new markets is good news. The BDC has $7.7mn at cost invested, mostly in Second Lien. A $5.2mn tranche is carried at a (33%) discount at 12-31-2017. We have an unchanged - but hopeful - CCR 4 rating on Xpress.
GECC,TCPC: The two BDCs have $84.2mn of investments in Avanti as of IVQ 2017, all carried at various discounts. This news only indicates the Company remains active as the value of the contract is not given.
ABDC: The BDC has $7.7mn of exposure to the Company in two Second Lien loans and equity. One tranche of the Second Lien is carried at a 32% discount to cost, with the other at par. The equity has no FMV. The trend is slightly up. This expansion suggests the Company may be growing, which could shrink the valuation discount.
AINV: Elements offers addiction treatment programs such as drug rehab, alcoholism treatment, eating disorder treatment, trauma, sex addiction in both residential and outpatient settings
FS energy & Power, FSIC,FSIC II, FFIC III, Carey Credit: James Bennett is out as CEO of SandRidge Energy Inc. Thursday, an apparent casualty of shareholder action. BDC EXPOSURE: All BDC investment in form of Equity, created by converting from debt in past restructuring. Carried at 9/30/2017 at (10%) discount to Cost. Unclear if management shuffles and disputes with activist investors will affect.
Sears said in January it was in talks with lenders about transactions to address its $1 billion of debt.
Corporate Capital Trust: Nine West Holdings and its creditors are nearing a deal to restructure approximately $1.5 billion in debt, according to a report from Bloomberg. As pa...
PhaseRx, Inc. (NASDAQ:PZRX) Files An 8-K Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet ArrangementItem 2.04. Triggering Events
iHeartCommunications, Inc. today announced that its Board of Directors has elected not to make a cash interest payment of $106 million, due February 1
TCW Direct Lending, PNNT, PFLT. Total Exposure $40mn.