BDC Reporter

BDC Reporter Premium Feature Article: We compare Capital Southwest's $CSWC IIQ 2026 performance metrics against its IQ 2026 actual results to determine if the BDC is performing as expected. We also discuss our investment view and whether we should make any changes in light of what we have just learned.bdcreporter.com/capital-southw…

BDC Credit Reporter Adds: We track all significant troubled companies in the Business Development Company ("BDC") sector, and you're right that old-fashioned Chapter 11s have become very rare. Usually, when that happens, both the sponsor and the lenders have given up any hope of turning the business around. In most cases, a liquidation follows, which is sad for everyone involved, including the company's employees and creditors. The bankruptcies that still occur tend to be pre-packaged, with a plan of action already laid out. There are still plenty of those, especially when unsecured creditors are involved and lawsuits and such. Most of the time - we'd say about two-thirds - the "debt-for-equity swap" is the chosen formula. In those cases, the lender-owners will often charge PIK to give their restructured companies the best chance at survival. They often inject new capital as well and extend loan maturities after converting most loans to equity. Given that many of these companies still have viable businesses and have typically been felled by excessive debt, exacerbated by the unexpected rise in rates from 2022, it seems perfectly reasonable to us that the BDCs would do what they can to turn them around. The alternative, in most cases, would be crystallizing a significant loss, putting employees out of work, and causing suppliers to lose valuable counterparties.

BDC Reporter Is Always Happy To Comment: We can only speak to private credit in its public wrapper - Business Development Companies ("BDCs"). Still, we're talking about $600bn plus of AUM... Maybe missing from your deal list are all the smaller add-ons that PE-sponsored borrowers have been busy with since the new-deal market went sour. For the sponsor, these are cheaper, involve fewer dollars, and take less time to book. The sponsors love them, and so do the lenders, since they have already underwritten the buyer. For some BDCs, more than half of the new dollars added are from financing these add-ons. Then, in an entirely different vein, BDC managers are keeping busy booking deals in segments of the market that used to be verboten before or of little interest. These include equipment leasing, sports teams, and even real estate. As a result of these two phenomena, the BDCs are staying busy and are helped by higher spreads on new loans and general anxiety, which have kept their existing portfolios from being refinanced at the pace they used to. BDCs have many challenges, but a shortage of new lending opportunities is not one of them as yet.

BDC Reporter Feature Article - Available To All: Stelllus Capital $SCM has cut its dividend for a second time in 6 months. The BDC Reporter, though, had anticipated the latest cut based on comments management made months ago. Our investment view has been amended, but the conclusion remains the same.

New post: Cubic Corp: IQ 2026 Update Read more: bdccreditreporter.com/cubic-corp-iq-…

BDC Reporter Premium Feature Article: Main Street Capital $MAIN has published its preliminary results for the IIQ 2026, which our AI Assistant has compared with the disappointing IQ 2026 results. We offer our own view on MAIN's most recent performance and our updated investment view. bdc-reporter.ghost.io/ghost/#/site

New post: Long Term Trends In the Golub Capital-Altman Middle Market Index Read more: bdccreditreporter.com/long-term-tren…

BDC Publications Article - Available To Anyone Interested: The Golub Capital-Altman Index of middle market company sales and EBITDA performance has just been published. We review the latest results and look at the longer-term historical trends, and shiver a little at what we find. Published in both the BDC Credit Reporter and BDC Reporter. bdccreditreporter.com/long-term-tren…

BDC Reporter Is Intrigued: Thanks for the heads up on the latest Golub Capital Altman Index, which we also turn to on occasion for insights into what's happening to mid-sized companies, the kind that don't get much press coverage on Bloomberg and X. You inspired us to have a look at 5-year trends in the data. (AI makes this so easy these days). Unfortunately, the numbers are not inspiring. We'll write a Feature article on the subject and make it available on X to anyone interested.

The BDC Reporter Begs To Differ: The big drop in the S&P BDC Index is not "implying recession". There's a much more pedestrian explanation. BDC earnings/dividends were buoyed in 2022-2024 by high SOFR rates and wide loan spreads. Since then, though, rates have dropped, and margins have narrowed, so earnings/dividends have declined. We calculate that by the end of 2026, BDC earnings will have dropped (39%) from their peak in 2023, and still have a little further to go in 2027. This has caused public BDC prices to drop correspondingly. This is an earnings story, not an early sign of a recession. If interest rates rose materially tomorrow (we should be so lucky!), most BDC prices would increase.

BDC Reporter Premium Feature Article: The BDC Dividend Outlook Table has just been updated following two dividend announcements. The BDC Reporter keeps track of the dividends of every BDC and projects the likely payouts for 2026 and 2027. This is one of our Subscriber Tools and a great way to determine what you're likely to be paid for any of the 45 public BDCs covered. bdcreporter.com/bdc-dividend-o…

BDC Reporter Premium Feature Article: Runway Growth Finance $RWAY has issued an update on its most recent investment activity and strategic direction, with stock purchases looming large. Will this convince us to change our investment view from a DON'T BUY to a BEST IDEA? bdcreporter.com/runway-growth-…

BDC Reporter Premium Feature Article: On the one hand, Saratoga Investment $SAR has few non-accruals and few seriously underperforming investments. On the other hand, we've identified 4 software companies that are cause for concern and which impact our investment approach. bdcreporter.com/saratoga-inves…

New post: Proofpoint, Inc.: Seeking Loan Maturity Extension Read more: bdccreditreporter.com/proofpoint-inc…

BDC Credit Reporter Premium Feature Article: A Thomas-Bravo-sponsored cybersecurity SaaS company that has been performing well, nonetheless wants to "amend and extend" a major Term Loan due in 2028 and is willing to pay up for the privilege. Good sign or worrying? bdccreditreporter.com/proofpoint-inc…

BDC Reporter Premium Feature Article-BDC Common Stocks Market Recap For The Week Ended July 10, 2026. According to its ETF, the BDC sector rose for a third week in a row. Underneath the hood, though, the metrics are more confusing. Are we at the beginning of a BDC rally after 18 months of decline? We tackle that thorny subject head-on in this week's review.bdcreporter.com/bdc-common-sto…

BDC Credit Reporter Appreciates the Heads-Up: We were unaware of this pending transaction because the company was valued close to par by its lenders as of IQ 2026. Also, Fitch rates the Term Loan BB-, and we mostly deal with underperforming BDC-financed companies valued below 80% of cost and - typically - rated CCC or less. (If they have a rating). According to Solve, BDC exposure - mostly non-traded payers - amounts to $775mn, with an aggregate FMV of $748mn. We're not sure if this transaction makes us more or less worried about the ultimate repayment, but the large amounts involved make this one worth watching for BDCs.

New post: ATX Networks: IQ 2026 Update Read more: bdccreditreporter.com/atx-networks-i…

New post: Senior Loan JV Fund I, LLC: IQ 2026 Update Read more: bdccreditreporter.com/senior-loan-jv…

BDC Credit Reporter Premium Feature Article: One of Oaktree Specialty Lending's $OCSL senior-loan joint ventures marches on for its 12th year. However, the value of the BDC's position continues to gradually erode. One day, Oaktree may need to book a realized loss in excess of ($80mn). bdccreditreporter.com/senior-loan-jv…