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Fifth Street Finance Corp. Message Board

  • keltus1952 keltus1952 Jun 13, 2013 9:41 AM Flag

    Why the tumble...?

    After about 8 minutes, trading down about .36, @ 9.78. I read thru the news release for the acquisition. Didn't see anything there particularly troubling except perhaps the size of the investment. Alot to put in one company. Anyone else see anything or "hear" anything.

    Is finally below Mar. 31 posted NAV of 9.90.


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    • In stead of taking the time to start this thread 8 minutes after the open I should have been hammering away in my Fidelity account loading up on FSC. Foiled again Batman.......(:^).....At least I still have my sense of humor.


    • One seller 435,000 shares. Goes to show you how well your money is managed by some funds.

      The HFG will be immediately accretive to NII. Go figure.

      That said, FSC did use its credit facility to make the acquisition, and that does increase the chances that they would need to raise cash. But FSC isn't a BDC that would sell stock at a discount to NAV. I see plenty of reason to hold; this is not a sell.

      FYI: I had my finger on the "buy" button. But I'm at full position here and I have to stick with my "rules." It would have been a short-term flip; that's really not part of my long-term plan. I'll stick with my plan and build some cash and acquire something else later this Summer. I have my eye on pipeline MLPs -- if they come down in price.

    • More........this investment does represent a little more than 10% of FSC's equity. Could be concerns about that. Not sure though, just guessing so far.


      • 1 Reply to keltus1952
      • Yea, saw the news too:
        "Fifth Street Finance Corp. (Nasdaq:FSC) ("Fifth Street") today announced that it has successfully closed its portfolio company acquisition of Healthcare Finance Group, LLC ("HFG"). Fifth Street invested $114 million to effect the acquisition, financing the purchase with available liquidity, including operating cash and borrowings under Fifth Street's existing credit facilities. Fifth Street expects the acquisition to be immediately accretive to net investment income."
        Also, according to BDC Reporter:

        "Here's a story about the number of private mezzanine funds being raised to invest in the U.S. market, based on data supplied by Private Equity industry data gatherer Prequin. The BDC Reporter goes on to speculate about what all this new dosh coming to town will mean for the existing Leveraged Finance players, and more specifically for the Business Development Company industry."

5.69+0.06(+1.07%)Oct 25 4:00 PMEDT