BDC Weekly Roundup 8/5/2011

Between this debt ceiling debate and the S&P downgrade, things have been busy at the BDCR. Here is a quick update post.  The BDCR Index was crushed this past week with a -5.97% loss from a level of 296.91 on 7/29/2011 to 279.19 for the week ending 8/5/2011. The major winners were TCAP (+4.30%) and GAIN(+2.99%) and the major losers were MCGC(-25.31%) and AINV (-15.03%).

Chart:

News:
The markets are going crazy. I hope everyone was able to get their trades through these past few days. If I was able (cannot trade due to restricted list) to trade, I would have gone with some of the top guys from my previous article.

Good luck out there!

BDC Weekly Roundup 7/22/2011

Will Congress figure out this Debt Ceiling business already? They are playing with fire and worrying the market. The BDCR Index had a mixed week with a 0.53% gain this past week from a level of 312.45 on 7/15/2011 to 314.09 for the week ending 7/22/2011. The major winners were ACAS (+4.08%) and ARCC (+3.9%) and the major losers were CODI (-4.92%) and KCAP (-2.99%).

Chart:

News:
Earnings season is coming up next week, most of the BDC-R companies will report earnings.

BDC Weekly Roundup 7/8/2011

Two weeks in a row of gains. Hopefully things are going to pick up, but the current yields on these securities are attractive. The BDCR Index gained 1.68% this past week from a level of 312.63 on 7/1/2011 to 316.56 for the week ending 7/8/2011. The major winners were NGPC (+8.36%) and KED (+7.73%) and the major losers was MCGC (-0.48%).

Chart:

News:
I will have an extended article up this week concerning dividends. It seems like the BDC companies have been in the spotlight (along with REITS) on the major news sites these past few weeks.
HRZN - Releases outlook - http://www.horizontechnologyfinancecorp.com/releasedetail.cfm?ReleaseID=589294
KED - Schedules earnings release - http://biz.yahoo.com/bw/110706/20110706006188.html?.v=1
MAIN - Closes a new $155m revolver with BB&T - http://www.bizjournals.com/tampabay/news/2011/07/08/bbt-extends-deal-to-main-street.html?ana=yfcpc
PSEC - Closed another $105m in investments (good to see they are putting that money to work)
TTO - Acquired a 40% interest in a PNM subsidiary - http://biz.yahoo.com/e/110706/tto8-k.html

BDC Weekly Roundup 7/1/2011

I hope everyone had a great 4th of July weekend. The posts have been coming a much slower rate due to me working on some new ways to source data. My current process is too time consuming and does not allow me to do the kind of in-depth analysis I would like to do.

The BDCR Index fought back and rose 2.31% this past week from a level of 305.41 on 6/27/2011 to 312.63 for the week ending 7/1/2011. The major winners were KED (+10.21%) and ACAS (+9.30%) and the major losers were EQS (-1.25%) and TCAP (-1.12%).
Chart:

News:
ACAS - Raising money through another stock, AGNC - http://seekingalpha.com/article/276766-mreit-american-capital-agency-s-secondary-provides-a-19-yield
KED - Boosts dividend by 22.6% and the stock soars - http://finance.yahoo.com/news/Kayne-Anderson-Energy-bw-2437001925.html?x=0&.v=1
NGPC - Announces new CFO - L. Scott Biar

BDC Weekly Roundup 6/17/2011

Been a busy few days here, but wow this is a rough market.

The BDCR Index had a slid another -1.47% this past week from a level of 309.35 on 6/10/2011 to 304.81 for the week ending 6/17/2011. The major winners were NGPC (+6.08%) and CODI (+5.52%) and the major losers were EQS (-6.30%) and MCGC (-5.51%).

Chart:


News:
ACAS - CEO Malon Wilkus buys 11,5000 shares, Senior VP Brian Graff unloads 926 shares
EQS - New board was elected without issues. - http://finance.yahoo.com/news/Equus-Announces-Results-of-iw-1454894910.html?x=0&.v=1
FSC - Releases newsletter - http://ir.fifthstreetfinance.com/phoenix.zhtml?c=216346&p=irol-newsArticle&ID=1572963&highlight=
Also, their CEO Leonard Tennebaum bought 10,000 shares on 6/14.
KCAP - Declares second quarter dividend of 17 cents (unchanged)

Motley Fool article on FSC and other BDCs - http://www.fool.com/investing/general/2011/06/18/is-fifth-street-finance-the-perfect-stock.aspx A bit ironic considering FSC (and of course PSEC) just did an equity raise this week.

BDC Weekly Roundup 6/10/2011

I am back! The test was difficult and I feel they did a poor job of testing the curriculum, but onwards and upwards.

The markets have been getting pummeled since my last post. The S&P 500 has declined about -3.96% and the BDCR Index has mirrored the decline by a -3.21% decline over that time as well. For the past week, the BDCR declined by -1.42% from a level of 313.81 on 6/3/2011 to 309.35 for the week ending 6/10/2011. The major winners were KCAP (+2.84%) and SLRC (+2.77%) and the major losers were TINY (-7.18%) and TTO (-5.74%).

Chart:

New:
No news articles this week, will restart those next week and begin content again.

BDC Weekly Roundup 5/6/2011

(EDITOR's NOTE: I will be on a reduced schedule for the next few weeks due to a certain exam. After that exam I intend on posting actual content and analysis with regularity again)

The BDCR Index had a downward slide this past week by an amount of -2.84% from a level of 328.66 on 4/29/2011 to 319.61 for the week ending 5/6/2011. The major winners were TCAP(+5.26%) and KFN(+1.19%) and the major losers were FSC (-8.03%) and EQS (-6.24%).

Chart:

BDC Weekly Roundup 4/29/2011

The BDCR Index had a nice recovery this past week by an amount of 2.46% from a level of 320.59 on 4/22/2011 to 328.664 for the week ending 4/29/2011. The major winners were CODI (+9.26%) and BKCC (+7.90%) and the major losers were TTO (-0.93%) and GLAD (-0.44%).
Chart:

News:
This week is earnings release week! Will post with any major news.

BDC Weekly Roundup 4/22/2011

The BDCR Index had a slight loss this past week by an amount of -0.13% from a level of 321.00 on 4/15/2011 to 321.00 for the week ending 4/22/2011. The major winners were ARCC (+3.12%) and EQS (+3.03%) and the major losers were TINY (-2.90%) and TCAP (-2.79%).

Chart:

News:
CODI - Some insider transactions - http://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0001345126
FSC - Releases annual letter - http://finance.yahoo.com/news/Fifth-Street-Finance-Corp-pz-3301990663.html?x=0&.v=1
HTGC - Closes $75m convertible offering
MCGC - Sells stake in Avenue, realizing $51.4m in proceeds (not return) - http://www.bizjournals.com/washington/news/2011/04/18/mcg-capital-sells-stake-in-avenue.html
PSEC - Adds two new lenders, increases Revolver - http://finance.yahoo.com/news/Prospect-Capital-Announces-iw-3521834156.html?x=0&.v=1

BDC Weekly Roundup 4/18/2011

The BDCR Index continued the downward slide this past week by an amount of -1.17% from a level of 324.75 on 4/8/2011 to 321.00 for the week ending 4/15/2011. The major winners were CODI (+1.14%) and FSC (+1.15%) and the major losers were HTGC (-6.18%) and KCAP (-4.67%).

Chart:

News:
ARCC - Closes an $86.5 mm investment
BKCC - Motley Fool calls BKCC a "perfect stock" and gives it a 7 out of 10 score. Wow. - http://www.fool.com/investing/general/2011/04/15/is-blackrock-kelso-capital-the-perfect-stock.aspx
FSC - Closes convertible offering, CEO Leonard M. Tannenbaum purchases $2m in concurrent private offering.
GAIN - Ups dividend by 12.5% - http://finance.yahoo.com/news/Gladstone-Investment-prnews-3583817188.html?x=0&.v=1
HTGC - Joins the convertible party with a $75 million senior notes offering. Changes articles of incorporation to increase maximum share issuance from 60mm to 100mm.
TTO - Downgraded by Ladenburg Thalmann

BDC Weekly Roundup 4/8/2011

The BDCR Index had a small loss this past week by an amount of -0.27% from a level of 325.61 on 4/1/2011 to 324.75 for the week ending 4/8/2011. The major winners were TTO (+2.48%) and NGPC(+2.33%) and the major losers were PSEC (-4.68%) and KCAP (-3.87%).

Chart:

News from the past week:

BKCC - Earnings release AND call on May 9th. I suppose they would prefer investors not have time to really dissect the 10-Q this time...

FSC - Issued $150m in convertible notes with a conversion price of $14.76 and an interest rate of 5.375%

GAIN - Sale of $5.6m equity investment in Cavert and reinvestment into Subordinated Debt - http://www.gladstone.com/article.php?q=%3FModule%3DMediaViewer%26GUID%3D18077006%26Ticker%3DGAIN

PNNT - Sibling company PFLT has a poor IPO - http://www.reuters.com/article/2011/04/08/pennantpark-ipo-idUSN0829180920110408?feedType=RSS&feedName=rbssFinancialServicesAndRealEstateNews&rpc=43

PSEC - Publishes updated earnings guidance, new investment disclosures and sneaks in a secondary. They priced the offering at 11.40 which was highly below the current price, but accretive to Book Value - http://www.sec.gov/Archives/edgar/data/1287032/000104746911003314/a2203200z497.htm 

BDC Weekly Roundup 4/1/2011

The BDCR Index enjoyed a healthy gain this past week by an amount of 2.11% from a level of 318.75 on 3/25/2011 to 325.762 for the week ending 4/1/2011. Note, the index is still below the high set on February 22nd 2011 of 337.57. The major winners were ACAS (+8.12%) and TCAP (+5.54%) and the major losers were GAIN (-3.06%) and NGPC (-2.97%).

Chart:

News items from this past week. Looks like the first week of May will be a busy earnings season:

ARCC - Earnings release scheduled for 5/3.

FSC - Locks in a 4.03% borrowing rate for 10 years - http://finance.yahoo.com/news/Fifth-Street-Finance-Corp-pz-1409467551.html?x=0&.v=1

KCAP - Seeks to win shareholder approval to issue shares below NAV (common in 2009), but Nicholas Marshi disagrees - http://seekingalpha.com/article/261391-dubious-feelings-about-kohlberg-s-equity-raising-plan

KED - Increases dividend from 30 cents to 31 cents per share - http://finance.yahoo.com/news/Kayne-Anderson-Energy-bw-736572173.html?x=0&.v=1

KFN - Investopedia looking at yield vs. P/E - http://stocks.investopedia.com/stock-analysis/2011/Single-Digit-PE-Stocks-With-Juicy-Dividends-CH-KFN-HCII-KED0328.aspx

PNNT - Earnings release scheduled for 5/4.

PSEC - Popular with Wall Street insiders - http://www.fool.com/investing/general/2011/03/28/wall-streets-buy-list.aspx

SLRC - Earnings release scheduled for 5/2.

BDC Weekly Roundup 3/25/2011

The BDCR Index enjoyed a slight gain this past week by an amount of 1.26% from a level of314.725 on 3/18/2011 to 318.75 for the week ending 3/12/2011. The major winners were KCAP(+8.22%) and TINY(+7.44%) and the major losers were SAR (-5.07%) and MAIN (-4.95%).

Chart:

News for the week:
ACAS - Lots of "For Sale" Rumors - http://seekingalpha.com/article/260156-american-capital-strategies-appears-poised-for-purchase
ARCC - Prices convertible offering of $200m - http://www.snl.com/irweblinkx/file.aspx?IID=4092627&FID=10939606
KCAP - Declares 1Q dividend of 17 cents
MAIN - Secondary offering of 3.5million shares at 18.35 - http://www.bizjournals.com/houston/news/2011/03/22/main-street-capital-prices-shares-for.html?ana=yfcpc
PSEC - Making some new investments - http://www.snl.com/IRWebLinkX/file.aspx?IID=4092630&FID=10928102

BDC Weekly Roundup 3/18/2011

The BDCR Index extended last week's losses and fell this past week by an amount of -2.64% from a level of 323.26 on 3/11/2011 to 314.725 for the week ending 3/18/2011. The major winners were HRZN(+1.25%) and PSEC (+0.51%) and the major losers were TICC (-8.64%) and TCAP (-8.11%).

Chart:

News from the past week:
BKCC - Seems like everyone has been talking about them
Slow week otherwise for BDCs, most of the major firms released their 10-K financials and you can find those online at EDGAR.

BDC Weekly Roundup 3/11/2011

(Was out last week) The BDCR Index took a tumble fell this past week by an amount of -3.76% from a level of 335.45 on 3/4/2011 to 323.26 for the week ending 3/11/2011. The major winners were TTO (+8.44%) and HRZN (+0.75%) and the major losers were BKCC (-20%) and TINY (-11.71%).

Chart:



Notable News Items:
BKCC - Misses earnings, reports Q4 EPS of 03 cents, expected 11 cents. Link to the CC - http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=209952&eventID=3753698
CODI - Raises dividend from 34 cents to 36 cents. Reports Q4 EPS of 48 cents, meeting consensus.
KCAP - Posts positive surprise EPS of 24 cents versus expected 17 cents. Link to the CC - http://ir.kohlbergcap.com/eventdetail.cfm?eventid=93480
Also releases/prices convertible notes - http://finance.yahoo.com/news/Kohlberg-Capital-Corporation-pz-3295497930.html?x=0&.v=1
MCGC - Selling portfolio company Superior Industries for $42.3mm http://finance.yahoo.com/news/MCG-Capital-Announces-Sale-of-bw-3869544465.html?x=0&.v=1
NGPC - Misses earnings, reports 15 cents per share versus estimate of 17 cents. http://finance.yahoo.com/news/NGP-Capital-Resources-Company-pz-3932944371.html?x=0&.v=1
FSC - Closed $182mm in new investments YTD - http://finance.yahoo.com/news/Fifth-Street-Finance-Corp-pz-1930631458.html?x=0&.v=1
MAIN - Raises dividend 4% (from .125 to .13)
MVC - Reports 1Q losses of 26 cents, misses the 3 cents estimate. Link to 1Q presentation - http://www.mvccapital.com/eventdetail.cfm?eventid=41339
TICC - Met earnings estimates - CC details - http://www1.snl.com/irweblinkx/corporateprofile.aspx?IID=4089666

Motley Fool link on BKCC/MVC - http://www.fool.com/investing/general/2011/03/09/blackrock-kelso-capital-shares-plunged-what-you-ne.aspx

BDC Weekly Roundup 2/25/2011

The BDCR Index fell this past week by an amount of -1.04% from a level of 337.57 on 2/18/2011 to 334.08 for the week ending 2/25/2011. The major winners were GAIN (+3.73%) and NGPC (+3.11%) and the major losers were KFN (-6.04%) and EQS (-4.79%).

Chart:

News from around the way:
New BDC IPO'd, falls in debut - SUNS - http://seekingalpha.com/article/254218-solar-capital-ipo-analysis?source=yahoo
ARCC - Good article on Ares balance sheet changes - http://seekingalpha.com/article/255232-ares-capital-bolsters-its-balance-sheet?source=yahoo
FSC - Expands credit facility to $215 million - http://ir.fifthstreetfinance.com/releasedetail.cfm?ReleaseID=552281
TCAP - Declared dividend of 42 cents/share

BDC Weekly Roundup 2/22/2011

The BDCR Index edged out a nice gain last week by an amount of  2.01% from a level of 330.92 on 2/11/2011 to 337.57 for the week ending 2/18/2011. The major winners were ACAS (+10.77%) and EQS (+6.18%) and the major losers were CODI (-5.27%) and TINY (-2.94%).


Chart:
Some quick notes on the chart, I have changed the scale from the average value to show the actual value. This has changed the slope of the line at a few points as the average values were at a different scale from the actual.

Some notable news items:
It appears this week was the week for key person turnover. Two BDC CEOs are leaving their posts, definitely worth monitoring this development.
ACAS - 4Q results top expectations. Still no dividend guidance though - http://finance.yahoo.com/news/American-Capital-4Q-results-apf-1937421312.html?x=0&.v=1
CODI - CEO Joe Massoud to take a leave of absence - http://finance.yahoo.com/news/Compass-Diversified-Holdings-prnews-2769409108.html?x=0&.v=1
FSC - Coverage initiated by FBR Capital
GAIN - Downgraded by Hilliard Lyons from Buy to Neutral
KFN - Earnings call transcript - http://seekingalpha.com/article/253666-kkr-financial-ceo-discusses-q4-2010-results-earnings-transcript?source=yahoo
MCGC - Will gain $50.4MM from sale of Avenue Broadband - http://www.bloomberg.com/news/2011-02-16/mcg-capital-to-get-50-4m-from-broadband-unit-sale.html
NGPC - John H. Homier (current CEO and President) will step down - http://finance.yahoo.com/news/NGP-Capital-Resources-Company-pz-3731910545.html?x=0&.v=1
PSEC - Added to S&P 600 SmallCap (see previous post). Priced out their $172.5mm (upsized from 150) convertible senior notes - http://seekingalpha.com/news-article/598332-prospect-capital-announces-pricing-of-150-million-of-5-5-5-5-year-unsecured-convertible-senior-notes-due-august-2016

BDC Weekly Roundup 2/14/2011

The BDCR Index edged out a slight gain last week by an amount of 0.15% from a level of 330.41 on 2/4/2011 to 330.92 for the week ending 2/11/2011. The major winners were TINY (+14.15%) and ACAS(+2.89%) and the major losers were TCAP (-5.93%) and PNNT (-3.01%).

Chart:

Some notable news items:
AINV - Downgraded by Ladenburg Thalmann to neutral http://www.americanbankingnews.com/2011/02/08/apollo-investment-corp-ainv-downgraded-by-ladenburg-thalmann-to-neutral/
GLAD - Declared NII of 22 cents per share - Seeking Alpha transcript http://seekingalpha.com/article/251506-gladstone-capital-ceo-discusses-f1q2011-results-earnings-call-transcript
PNNT - Public secondary offering of 8m shares at 12.40
PSEC - Declares next 3 months of dividends, 10.115, 10.1175, 10.12 cents per share. http://finance.yahoo.com/news/Prospect-Capital-Reports-iw-2071863640.html?x=0&.v=1
PSEC - Will be added to S&P SmallCap 600 Index - http://finance.yahoo.com/news/Standard-Poors-Announces-prnews-1222046055.html?x=0
TCAP - Public secondary offering of 3m shares at 19.25
TTO - Declared an dividend of 10 cents per share, estimated to be all return of capital http://finance.yahoo.com/news/Tortoise-Capital-Resources-bw-1891515772.html?x=0&.v=1

BDC Weekly Roundup 2/7/2011

The BDCR Index rose again last week by an amount of 1.11% from a level of 326.74 on 1/28/2011 to 330.41 for the week ending 2/4/2011. The major winners were EQS (+11.38%) and KCAP (+9.62%) and the major losers were GLAD (-3.60%) and FSC (-0.11%).

Chart:

Some notable news items:

ACAS - Sells triVin for $11m gain

AINV - Earnings call transcript - http://seekingalpha.com/article/251005-apollo-investment-ceo-discusses-q3-2011-results-earnings-call-transcript

EQS - Sells three equity investments for $10m to a Fund

FSC - Closes share offerings, declares monthly dividends of 10.66 cps.

KCAP - Paid off its debt - http://seekingalpha.com/article/250089-kohlberg-capital-pays-off-its-debt-what-s-next

PNNT - Increases quarterly dividend to 27 cents http://www.sys-con.com/node/1700862

BDC Weekly Roundup 1/31/2011

The BDCR Index reclaimed last week's losses and rose by an amount of 3.88% from a level of 314.07 on 1/21/2011 to 326.74 for the week ending 1/28/2011. The major winners were TINY (+11.53%) and FSC (+10.81%) and the major losers were GAIN (-5.61%) and GLAD (-0.26%).

Chart:

Some notable news items:
FSC - Upgraded by Stifel Nicolaus, issues 10million shares today
MCGC - Renews $150m secured credit facility - http://www.streetinsider.com/IPOs/MCG+Capital+%28MCGC%29+Secures+$150M+Secured+Warehouse+Cradit+Facility+Renewal/6235033.html
PSEC - Makes another large investment - http://finance.yahoo.com/news/Prospect-Capital-Provides-282-iw-2812588062.html?x=0&.v=1
TINY - Portfolio company BioVex to be acquired - http://biz.yahoo.com/e/110124/tiny8-k.html