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Market Stats BDCs at Yahoo BDCs at CNN MarketWatch BDCs at MSN BDCs at WSJ BDC Intros Nicsa.Org Investment Lawyer 08 Updates Dec Nov Oct Sept Aug July Jun May Apr Mar Feb Jan 07 Updates Dec Nov Oct Sept Aug Jul Jun May Apr Mar Feb Jan |
Note : I am no longer doing run rate adjustments to the dividends [which I did in 2008's data] - only the real and actual dividend data is used. CSE, HCD GNV and MIC cut their divs in Q4. HTGC, KED and TTO have cut their Q1 div and ALD defaulted on loans which eliminates divs on 2-19. Summation: Question every div based valuation because all divs are vulnerable to future cuts. AINV has cut its Q2-09 dividend in half - and Q2-09 yields are not shown in the data below Allied Capital defaults on credit facility Reuters 2-19 Buyout firm Allied Capital Corp, battered by frozen credit markets, said it was notified by its lenders of a default on its revolving credit facility, an event which could significantly hamper the firm's liquidity. In a filing with the SEC, Allied said a default under its revolving credit facility also constitutes default under its private notes. The company had $1.015 billion in outstanding private notes as of Feb 13. Allied said it had $50 million in outstanding borrowings, and about $120 million in outstanding letters of credit under the credit facility. The default occurred as the company did not complete the required documents related to a Dec. 30, 2008, amendment to its credit facility. The amendment required the company to pay first lien security interest on almost all of its assets, Allied said. An event of default will restrict the company from borrowing under its credit facility and declaring dividends or other distributions to its shareholders. The default also permits the lenders to accelerate repayment of all amounts due and to require Allied to have cash collateral equal to the value of all outstanding letters of credit. AINV Reports Q4-08 Market Wire 2-05 Apollo Investment Corporation reported Q4-08 Net investment income of $52.787 million [$0.37/share]; Net realized losses of $3.576 million [- $0.02/share]; Net change in unrealized depreciation of $524.754 million [- $3.69/share]; resulting in a Net increase (decrease) in net assets resulting from operations of $475.543 million [- $3.34/share]. Net Asset Value per share was $9.87. At December 31, 2008, AINV's net portfolio consisted of 73 portfolio companies and was invested 24% in senior secured loans, 59% in subordinated debt, 4% in preferred equity and 13% in common equity and warrants versus 70 portfolio companies invested 24% in senior secured loans, 55% in subordinated debt, 5% in preferred equity and 16% in common equity and warrants at December 31, 2007. The weighted average yields on AINV's senior secured loan portfolio, subordinated debt portfolio and total debt portfolio at our current cost basis were 9.0%, 13.3% and 12.1%, respectively, at December 31, 2008. At December 31, 2007, the yields were 11.6%, 13.0%, and 12.6%, respectively. With Long-term debt ['credit facility payable'] of $1.162 billion and Shares outstanding of 142.221 million, the Debt/share was $8.17 [average debt per share was reported as $8.78 based on average debt outstanding of $1.216 billion] and the Debt/NAV ratio was 82.78%.The Ratio of operating expenses to average net assets was 4.51%. The Ratio of net investment income to average net assets was 7.42%. Lathem Internation loan [which had a $34 million value in March] was totally written off [the 10-Q still showed a fair value of $22.516 million, so I heard that wrong or it was written off after year end]. It was the only loan on non-accrual. From the Conference Call: The debt to equity ratio was .83 to 1. AINV took a write-down on their equity investment in REIT InnKeepers from a value of $206 million to $75 million. ANV responded with a BS answer that they are watching this investment closely - but there is no a lot of guidance for that sector out there. The equity in Innkeepers has not paid AINV dividends. AINV continues to invest money in InnKeepers, like putting in flat screen TVs. In this environment [or coming out of this environment] one would not want to own a place where people do not want to stay. They are watching the asset coverage ratio - and could harvest some investments to pay down debt when or if that is needed. There are no interest coverage covenants. There are NAV covenants, but the 200% asset coverage trigger would go off first before any NAV triggers go off. How did you come up with the $0.26/share dividend? AINV: We are focused on the 1 to 1 debt to equity ratio and created a dividend policy to keep that ratio in line. Div in stock rather than cash? AINV: No intention for us to do that. RICs like REITs have that option. We have other options than that. On NAV - you presnet that number as of 12-31 - and six weeks have gone by. How much has NAV changed since then? AINV: It would be inappropriate to give intra-quarter updates, but the credit markets have done better since year end. FAS 157-3 - mark to market changes. Looks like you stuck with market prices. AINV: Our valuation processes have not changed. We still use market prices and third party valuations. Why is the dividend being paid in April instead of the usual in late March? AINV: It was a timing issue. Cash flows are lumpy. We have a host of payments due on 3-31 - and a lot will come in on 4-01. We did not want to borrow on our revolver to pay the div. Can investors expect a bounce back on the share price? AINV: We are controlling expenses and not adding to head count. We are not fire selling assets. We are a credit investor. There is a large difference between real impairment and mark to market investment values. We own credits in companies that can withstand this environment. There is a credit cycle. And we are doing what we can to survive the cycle and capure tha upside. Is the 'LSTA' a good way to monitor intra-quarter NAV changes? AINV: There are several indexes like the S&P/LSTA loan index [S&P and Loan Syndications Trading Association Leveraged Loan Index]. Some of our investment correlate to that. But the correlation is not perfect. FASB rule 159 to mark to market their liabilities. Would that help your coverage ratios? AINV: FASB 159 was available to some BDCs - but it is no longer an option. Is availability depended on your year end. If we did have ability, we may or may not have taken that option. Banks have pulled in on loaning money. I thought such a condition want help your pipeline. AINV: This should be a time when BDCs fill in the void left by banks, but BDCs are under stress [due to mark to market rules] and do not have the ability to do that. Good companies are having covenant problems. FSC Reports Q4-08 Globe Newswire 2-05 Fifth Street Finance Corp. reported Q4-08 Net investment income was $8.2 million [$0.36/share] as compared to $3.7 million [$0.29/share] for Q4-07; Net unrealized depreciation was $18.5 million [$0.82/share] as compared to $0.5 million [$0.03/share for Q4-07; During Q4-08, FSC sold no investments and reported no realized gains or losses. this resulted in a Net decrease in net assets resulting from operations of $10.3 million, as compared to $3.2 million for Q4-07. Net asset value per share was $11.86. FSC's portfolio consisted of investments in 25 companies and consisted of 38.6% first lien loans, 60.3% second lien loans, and 1.1% equity investments at fair value. The weighted average yield on debt investments was 16.5%. GAIN Reports NII of $0.16 compared to Quarterly Div of $0.24 Business Wire 2-02 Gladstone Investment Corp. reported Q4-08 Net Investment Income of $3.587 million [$0.16/share] as compared to $3.746 million [$0.23/share] for Q4-07. Reductions in LIBOR reduced GLAD's NII. GAIN had unrealized depreciation of Non-Control investments of $6.988 million; Unrealized appreciation of some Control investments of $1.755 million combined with unrealized depreciation of $2.294 million resulting in total unrealized depreciation of $7.527 million. The Net Decrease in Net Assets Resulting from Operations was $3.9 million [- $0.18/share]. Net asset value was $10.15. The annualized weighted average yield on portfolio of investments, excluding cash and cash equivalents, was 8.76% as compared to 9.05% for Q4-07. With Long-term debt ['Borrowings under line of credit'] of $117.864 million and Shares outstanding of 22.080 million, the Debt/share was $5.34 and the Debt/NAV ratio was 52.59%. The Asset coverage ratio was 290%. The Ratio of net expenses to average net assets was 5.96%. The Ratio of net investment income to average net assets was 6.26%. At December 31, 2008, one Non-Control/Non-Affiliate investment was on non-accrual with a cost basis of approximately $4.6 million and one Control investment was on non-accrual with a cost basis of approximately $6.9 million, or an aggregate of 3.7% of the cost basis of all loans in our portfolio. Dividend income on preferred equity securities is accrued to the extent that such amounts are expected to be collected and that GAIN has the option to collect such amounts in cash. To date, GAIN has not accrued any dividend income [and GAIN has several preferred securities which it footnotes are being non-oncome producing. Are these PIK income?]. GLAD Reports Q4-08 Business Wire 2-03 Gladstone Capital Corp. reported Q4-08 Net Investment Income of $5.9 million [$0.28/share] as compared to $7.3 million [$0.43/share] for Q4-07. Net unrealized depreciation was $13.3 million compared to $5.4 million for Q4-07. The Net Decrease in Net Assets Resulting from Operations was $9.1 million [- $0.43/share] as compared to a Net Increase in Net Assetsof $1.9 million [$0.11/share] for Q4-07. Net asset value was $12.04. The annualized weighted average yield on the portfolio, excluding cash, was 9.8% as compared to 11.0% for Q4-07. The weighted average yield varies based on the current stated interest rate on interest-bearing investments and the amounts of loans for which interest is not accruing. Recent reductions in LIBOR rates reduced GLAD's income on its variable rate investments, as well as three investments being on non-accrual. GLAD experienced a decrease in LIBOR on approximately $57.7 million in syndicated loans that have their rate based on LIBOR without a rate floor. The effect of the decrease in LIBOR has been mitigated by the presence of a rate floor on most of the other loans held in GLAD's portfolio that it has originated. With Long-term debt ['Borrowings under line of credit'] of $146.470 million and Shares outstanding of 21.087 million, the Debt/share was $6.94 and the Debt/NAV ratio was 57.69%. The Asset coverage ratio was 273%. The Ratio of net expenses to average net assets-annualized was 9.05%. The Ratio of net investment income to average net assets-annualized was 8.98%. Non-accrual loans are held with Greatwide Logistics Service of $2 million cost and $40 thousand at fair value, LYP Holdings Corp. of $6.783 million at cost and zero at fair value, and U.S. Healthcare Service Communications [a magazine publisher] for $619 thousand and $566 cost in which GLAD also has a $2.470 million common stock investment. At December 31, 2008, nonaccrual loans had an aggregate cost basis of approximately $9.2 million or 2.0% of the cost basis of all investments in GLAD's portfolio. GLAD has a $300 million revolving credit facility with Deutsche Bank AG that will terminate on May 21, 2009. If the DB Facility is not renewed or extended by this date, all principal and interest will be due and payable within one year of the maturity date. KED Reports Adjusted NII of $0.28 compared to a Div of $0.35 Market Wire 2-09 Kayne Anderson Energy Development Company reported Q4-08 Investment income of $1.3 million. KED received $4.2 million of cash dividends and distributions, of which $3.6 million was treated as a return of capital. After operating expenses of $2.4 million, Net investment income was - $0.7 million and included $0.5 million of deferred income tax benefit. Net realized gains were $9.3 million while Net unrealized losses were $65.8 million, which consisted of $104.5 million of unrealized losses from investments net of a deferred income tax benefit of $38.7 million. KED's net decrease in net assets resulting from operations for the period was $57.3 million. As of November 30, 2008, KED's NAV was $162.7 million or $16.10/share. KED's potfolio consisted of $92.1 million invested in Private MLPs at an average yield of 10.7%; $60.9 million invested in Public MLPs at an avereage yield of 16.2%; $20.0 million invested in Fixed Income investments with an average yield of 13.4%; and $2.8 million invested in Repurchase Agreements with an average yield of 0.3%. From the Conference Call: During a terrible Q4-08, Hedge funds sold MLPs to deleverage; CEFs sold MLPs to deleverage; and individual investors both delvereaged and reduced their exposure to equitiies. Lehman was a major holder of MLPs and their bankrupcy caused more selling. MLPs have strong capital needs to fund their growth cap ex, and that added risk and cost hurts equitiy pricing. Due to higher cost of debt, MLPs have slowed distribution growth as they use some DCFs that could have gone to higher distributions to fund growth - and slower distribution growth hurt equity pricing. KED now trades at larger discounts to NAV - as has almost all BDCs. KED reduced distribution from $.42/unit to $.35/unit. KED's prior distributions had contained realized gains, and now realized gains are being kept and not yet distributed. Top four private investments: [1]Direct Fuels - transmix refining, gas and diesel distributions. 16 day turnover period - and was hurt by fall in gas prices and this eroded all of their margins. Delayed IPO for company, and is close to being in violatin of some loan covenants. [2] Vanacor - asphalt MLP - had a good year. [3] IRP - coal surface mining and undergroun mining of coal for steel - had a great year. [4] ProPetro - oil field service - new management team. E&P companies are reducing drilling, hurting ProPetro. NAV as of 1-22-09 was $15.22 [which includes the effect of the distribution] vs $16.10 on 11-30-08. KED has $57 million in borrowings and the Debt/asset ratio was 26%. PNNT Reports NII of $0.27 compared to a Div of $0.24 Market Wire 2-04 PennantPark Investment Corporation reported Q4-08 Net investment income totaled $5.8 million [$0.27/share] compared with $4.7 million [$0.23/share] Q4-07. PNNT reported a Net Realized Loss of $887,000 compared with losses of $211,000 for Q4-07. Net Unrealized Depreciation totaled $114.4 million, primarily due to the continued downturn in the leveraged finance credit markets. The Net Decrease in Net Assets from Operations totaled $31.8 million [- $1.51/share] compared with $11.5 million [- $0.54/share] for Q4-07. Net asset value per share was $10.24. As of December 31, 2008, PNNT's portfolio totaled $328.8 million and consisted of $151.3 million of subordinated debt, $96.6 million of second lien secured debt, $9.3 million of preferred equity, $11.4 million of common equity and $60.2 million of senior secured loans. PNNT's core assets totaled $282.0 million and consisted of investments in nineteen different companies with an average investment size of $14.8 million per company and a weighted average yield of 11.9% on debt investments. With Long-term debt ['credit facility payable'] of $109.885 million and Shares outstanding of 21.069 million, the Debt/share was $5.21 and the Debt/NAV ratio was 50.93% [which is the way other BDCs ratios are calculated on this page. PNNT reported "Average debt per share" as being $7.80."]. Total expenses to average net assets ratio was 12.06%. The Ratio of net investment income to average net assets was 11.03%. "We believe that we are well positioned to deal with the challenging market and economic environment," said Arthur Penn, Chairman and Chief Executive Officer. "Our underlying portfolio companies generally have strong interest coverage that is paid to us as interest income and covers our dividend. We have substantial liquidity to make new investments in this opportunistic environment to generate more cash flow, to grow income, and cushion for potential defaults. All of this should translate into a stable dividend stream and over time, growth in Net Asset Value." PSEC Reports NII of $0.40 compared to a Div of $0.40375 Market Wire 2-10 Prospect Capital Corporation reported Q4-08 Net Investment Income of $11.960 million [$0.40/share]. Excluding special one-time items, net investment income for the fiscal second quarter was $12.4 million, or $0.42/share. [Analysts polled by Thomson Reuters, on average, forecast income of $0.46/share.] The Realized gain on investments was $0.016 million while the Unrealized appreciation was a loss of $5.452 million. The Net Increase in Net Assets Resulting from Operations was $6.524 million [$0.2201/share]. The net asset value per share on December 31, 2008 equaled $14.43. PSEC's portfolio generated a current yield of approximately 16.0% across all our long-term debt and equity investments. With Long-term debt ['credit facility payable'] of $138.667 million and Shares outstanding of 29.638 million, the Debt/share was $4.68 and the Debt/NAV ratio was 32.43%. Annualized ratio of operating expenses to average net assets was 9.34%. Annualized ratio of net operating income to average net assets was 11.33 %. At December 31, 2008, two loans extended to Integrated and one loan extended to WEPI were on non-accrual status. The two loans to Integrated were also on non-accrual status at June 30, 2008. The loan principal of these loans amounted to $55,742 and $14,803 as of December 31, 2008, and June 30, 2008, respectively. The fair values of these investments represent approximately 3.4% and 0.9% of our net assets as of December 31, 2008 and June 30, 2008, respectively. For the three months ended December 31, 2008, and December 31, 2007, the income foregone as a result of not accruing interest on these debt investments amounted to $2,528 and $682, respectively. For the six months ended December 31, 2008, and December 31, 2007, the income foregone as a result of not accruing interest on these debt investments amounted to $4,983 and $682, respectively. On 2-05 AINV declared a reduced dividend of $0.26/share payable on April 2, 2009 to stockholders of record as of March 19, 2009. On 2-12 HTGC declared a reduced stock and cash dividend of $0.32/share [down from $0.34/share] payable up to 90% or $0.29 per share, in common stock of the Company and up to 10%, or $0.03 per share, in cash, based on stockholder elections, and payable on March 30, 2009 to shareholders of record as of February 23, 2009. On 2-12 TTO declared a reduced distribution of $0.23/share [down $0.035 from the prior distribution] which represents an estimated 94% of DCF and will be paid on Mar. 02, 2009 to stockholders of record on Feb. 23, 2009. On 2-06 Stifel Nicolaus analyst Troy Ward maintained a "Sell" rating on AINV and said the dividend reduction probably would put additional pressure on Apollo's shares. The analysts noted that Apollo's book value dropped 28 percent to $9.87 from $13.73 last quarter, due in part to a poor performance by the company's investment in Innkeepers USA Trust. BMO Capital Markets analyst David J. Chiaverini maintained a "Market Perform" rating on AINV. Apollo said that the company was in compliance with all of its financial covenants as of Dec. 31. Chiaverini estimated that Apollo's book value would have to fall an additional 25 percent before the company is in danger of missing its minimum net worth covenants. On 1-13 GAIN declared their Q1-09 month dividends at $0.08/share with January's div having a record date of 1-22 and a payment date of 1-30, February's div having a record date of 2-19 and a payment date of 2-27, and March's div having a record date of 3-23 and a payment date of 3-31. On 1-13 GLAD declared their Q1-09 month dividends at $0.14/share with January's div having a record date of 1-22 and a payment date of 1-30, February's div having a record date of 2-19 and a payment date of 2-27, and March's div having a record date of 3-23 and a payment date of 3-31. On 1-13 GOOD declared their Q1-09 month dividends at $0.125/share with January's div having a record date of 1-22 and a payment date of 1-30, February's div having a record date of 2-19 and a payment date of 2-27, and March's div having a record date of 3-23 and a payment date of 3-31. On 1-09 Kayne Anderson Energy Development Company [KED] announced its unaudited net asset value of $150.2 million or $14.87/share as of November 30, 2008 [down from $22.19 in the prior quarter] and declared a reduced dividend of $0.35/share [down from $0.42/share in the prior quarter] will be payable on January 29, 2009 to common stockholders of record on January 16, 2009, with an ex-dividend date of January 14, 2009. [Note - the reduced NAV will be included in the Q4-08 data which is not yet displayed - thus this reduction of NAV is not reflected in the above spreadsheets.] On 1-05 shares of ALD jumped after an analyst upgraded the stock, citing a revised credit agreement that gives the investment firm greater near-term flexibility. Stifel Nicolaus analyst Greg Mason upgraded shares of Washington-based Allied Capital to "hold" from "sell." The move came five days after Allied Capital said it had amended terms of its revolving credit facility and private notes. The changes reduced the company's capital maintenance covenants. The amendments "provide us additional comfort on the near-term fundamental stability," Mason wrote in a research note to investors. Mason said he is "comfortable" with investors holding shares of Allied Capital, given the stock's recent decline. On 1-05 Stifel Nicolaus Upgraded ALD from Sell to Hold and Downgraded AINV from Hold to Sell. On 1-20 JP Morgan upgraded ARCC from Underweight to Neutral. On 1-20 JP Morgan Downgraded AINV from Overweight to Neutral. On 1-20 Stifel Nicolaus reiterated GNV as a Buy. On 1-29 Keefe Bruyette Downgraded AINV, ALD, ARCC and PNNT from Outperform to Market Perform and Downgraded ACAS from Market Perform to Underperform. On 1-20 JP Morgan Securities analyst Andrew Wessel cut his rating AINV to "Neutral" from "Overweight" and his price target to $9 from $14. "While we acknowledge AINV's comfortable liquidity ... our outlook is tempered as Apollo Investment takes a wait-and-see approach to capital deployment," Wessel wrote. He added that investment capacity at AINV is still available and liquidity remains ample. Wessel cut his 2009 and 2010 earnings per share estimates to $1.49 and $1.54 per share from $1.52 and $1.58, respectively. Analysts polled by Thomson Financial expect, on average, earnings of $1.47 per share for 2009, and $1.50 per share for 2010. AINV has a current div of $0.52/share and a forward div of $0.26/share Net Investment Income $52.787 million [divided by 142.221 million 'average' shares = $0.3712] Realized gain (loss) on investments = - $3.576 million [- $0.0251/share] Realized Earnings = $49.221 million [$0.3460/share] Unrealized appreciation = - $524.754 million [- $3.6897/share] Net Increase in Net Assets Resulting from Operations = - $475.534 million [- $3.3436/share] GAIN has a current dividend of $0.24/share/quarter Net Investment Income $3.587 million [divided by 22.080 million shares at end of period = $0.1624] Realized gain (loss) on investments = $0.000 million [ $0.0000/share] Realized Earnings = $3.587 million [$0.1624/share] Unrealized appreciation = - $7.527 million [- $0.3409/share] Net Increase in Net Assets Resulting from Operations = - $3.940 million [- $0.1784/share] GLAD has a current dividend of $0.42/share/quarter Net Investment Income $5.881 million [divided by 21.087 million shares = $0.2789] Realized gain (loss) on investments = - $1.713 million [- $0.0812/share] Realized Earnings = $4.168 million [$0.1976/share] Unrealized appreciation = - $13.253 million [- $0.6285/share] Net Increase in Net Assets Resulting from Operations = - $9.103 million [- $0.4317/share] GNV has a current dividend of $0.25/share Net Investment Income $3.887 million [divided by 8.291 million shares = $0.4688] Realized gain (loss) on investments = $7.294 million [- $0.8797/share] Realized Earnings = - $3.407 million [- $0.4109/share] Unrealized appreciation = - $4.144 million [- $0.4998/share] Net Increase in Net Assets Resulting from Operations = - $7.551 million [- $0.9107/share] KED has a current dividend of $0.350/share Net investment income = - $0.727 million [divided by 10.102 million shares = - $0.0720/share] Adjusted NII [which includes $3.566 million in ROC divs] = $2.829 million [$0.2800/share] Net realized gain on investments $9.292 million [$0.9198/share] Realized Earnings = $8.565 million [$0.8478xshare] ROC Adjusted Realized Earnings = $12.121 million [$1.1998/share] Unrealized appreciation = - $65.825 million [- $6.5160/share] Net Increase (Decrease) in Net Assets Resulting from Operations = - $57.260 million [$5.6682/share] ROC Adjusted Net Increase in Net Assets Resulting from Operations = - $53.704 million [$5.3162/share] PNNT has a current dividend of $0.24/share Net Investment Income $5.767 million [divided by 21.069 million 'average' shares = $0.2737] Realized gain (loss) on investments = - $0.887 million [- $0.0421/share] Realized Earnings = $4.880 million [$0.2316/share] Unrealized appreciation = - $36.637 million [- $1.7389/share] Net Increase in Net Assets Resulting from Operations = - $31.756 million [- $1.5072/share] PSEC has a current dividend of $0.40375/share Net Investment Income $11.960 million [divided by 29.638 million 'average' shares = $0.4035] Realized gain (loss) on investments = $0.016 million [$0.0005/share] Realized Earnings = $11.976 million [$0.4041/share] Unrealized appreciation = - $5.452 million [- $0.1839/share] Net Increase in Net Assets Resulting from Operations = $6.524 million [$0.2201/share] NOTE #1: This page is ment to be a supplement for those already getting monthly sector updates from another source. Data entry errors sporadically happen. There are other metrics not covered here that should not be ignored. NOTE #2: This page has a forcasting spreadsheet - and until that mathamatical model has had a year or two of testing, it is probably best for you to totally ignore it. NOTE #3: The owner of this site owns shares in GNV and NGPC - and this could distort the coverage of those BDCs. |