3.7500 -0.01 (-0.27%)
After hours: 4:42PM EDT
|Bid||3.7100 x 1300|
|Ask||3.7600 x 2900|
|Day's Range||3.7010 - 3.7700|
|52 Week Range||1.9000 - 6.3800|
|Beta (5Y Monthly)||1.54|
|PE Ratio (TTM)||N/A|
|Earnings Date||May 06, 2020|
|Forward Dividend & Yield||0.60 (16.13%)|
|Ex-Dividend Date||Jun 16, 2020|
|1y Target Est||4.30|
(Bloomberg) -- Business development companies, the most visible pocket of the $800 billion private credit market, face more dividend cuts and possibly even restructurings later this year after the Covid-19 pandemic has bruised their portfolios.The companies this month released results for the quarter ended March 31, and the industry saw steep drop-offs in the value of investments and other headwinds caused by the new coronavirus. BDCs that wrote down the loans they own by about 6.5% ended up posting declines in their net asset value per share ranging between 6% and 30%, according to JMP Securities analyst Christopher York.Those writedowns make it harder for the companies to continue paying out as much to investors, York said. More than a dozen BDCs, including FS KKR Capital Corp. and New Mountain Finance Corp., slashed their dividend payments recently.In July, ahead of the next round of earnings “you may see some other BDCs that haven’t done so reduce their dividends,” York said in an interview. Lower dividends can punish BDCs, whose shareholders are often seeking income. BDC share prices fell an average of around 45% in the first quarter on investors’ expectations of dividend cuts.Requests for comment from FS KKR and New Mountain weren’t immediately returned.Managing LiabilitiesIn focus for many market watchers is how BDCs are contending with their own debt loads. Capitala Finance Corp., for example, said in early May it couldn’t draw on its senior secured credit facility due to its non-compliance with covenants.In an email, Capitala Chief Executive Officer Joseph Alala said the BDC has sufficient liquidity, due to its $55 million in cash and a new small business investment company license that allows it to borrow up to $175 million from the U.S. Small Business Administration at maximum leverage with funded equity.Ryan Lynch, an analyst at Keefe, Bruyette & Woods, scrutinized BDCs’ financials to evaluate how well the companies could weather the pandemic. Those that will fare best, according to Lynch, are those that have the lowest leverage; with the highest percentage of liabilities in unsecured debt, which provide more financial flexiblity; that have a high level of undrawn credit facility capacity and lower amounts of unfunded commitments.“That puts you in a better position to not only survive this downturn but also to take advantage of deals at the bottom,” Lynch said.For the second quarter, analysts will be watching to see how much portfolios recover from mark-to-market losses. Investors may be even less forgiving than they were for the first quarter.“I think the scrutiny will kick up in the second quarter,” said Richard Wheelahan, a founding partner at debt advisory firm Fund Finance Partners. “Extrapolate the themes from Q1 and increase the order of magnitude.”Investors will watch results closely for signs of more losses brewing in companies’ portfolios. This trend could play out over the rest of the year, said JMP’s York.“The second quarter you should see significant accelerations in non-accrual investment and then in the third quarter you should expect to see some restructures -- that will be the sequence,” York said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
FS KKR Capital (FSK) delivered earnings and revenue surprises of -9.52% and -5.29%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
FS KKR Capital (FSK) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
FS KKR Capital Corp. (NYSE: FSK) announced today plans to release its first quarter 2020 results after the close of trading on the New York Stock Exchange on Wednesday, May 6, 2020.
FS KKR Capital (FSK) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
As stock prices hit record lows, executives are taking advantage of the opportunity to scoop up shares on the cheap and show confidence in the future of their companies.
Coronavirus is probably the 1 concern in investors' minds right now. It should be. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW. We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […]
The business development company said it has $2.7 billion of cash and substantial secured credit facilities to weather the crisis.
FS KKR Capital (FSK) delivered earnings and revenue surprises of 5.00% and -4.23%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
FS KKR Capital (FSK) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Solid liquidity position and strength in the credit card business will likely aid Capital One (COF). Yet, higher expenses and deteriorating asset quality might hamper financials.
Hercules Capital (HTGC) remains well-positioned for growth based on its strong liquidity position, improving economy and robust loan originations.
The alternative investment manager combined four non-traded funds into one with $9.5 billion in assets called FS KKR Capital Corp. II.
FS Investments is making its first acquisition in the fast-growing firm's 12-year history while at the same time serving as its entry into the conventional investment management world. Financial terms for Chiron Investment Management were not disclosed. Chiron’s nearly $2 billion in assets under management represents about 8% of the $24 billion at FS.
FS KKR Capital Corp. (NYSE: FSK) announced that it has priced an underwritten public offering of an additional $45 million in aggregate principal amount of its 4.125% unsecured notes due 2025 (the "Notes") pursuant to a reopening of such Notes. The Notes will mature on February 1, 2025 and may be redeemed in whole or in part at FSK's option at any time at par plus a "make-whole" premium, provided that the Notes may be redeemed at par one month prior to their maturity. The offering is expected to close on December 17, 2019, subject to customary closing conditions.
PHILADELPHIA and NEW YORK, Nov. 20, 2019 /PRNewswire/ -- FS KKR Capital Corp. (FSK) today announced that its previously announced cash tender offer (the "Tender Offer") for any and all of its outstanding 4.250% Notes due 2020 (the "2020 Notes") expired at 5:00 p.m., New York City time, on November 19, 2019. As of the expiration of the Tender Offer, approximately $214 million or 52.9% of the $405 million outstanding aggregate principal amount of the 2020 Notes had been validly tendered and not validly withdrawn. No 2020 Notes were tendered pursuant to the guaranteed delivery procedures described in the Offer to Purchase dated November 13, 2019 (the "Offer to Purchase").
PHILADELPHIA , Nov. 13, 2019 /PRNewswire/ -- FS KKR Capital Corp. (NYSE: FSK) announced that it has priced an underwritten public offering of $425,000,000 in aggregate principal amount of its 4.125% unsecured ...
PHILADELPHIA, Nov. 13, 2019 /PRNewswire/ -- FS KKR Capital Corp. (FSK) today announced that it has commenced a cash tender offer (the "Tender Offer") for any and all of its outstanding 2020 Notes. The Tender Offer is being made on the terms and subject to the conditions set forth in the Offer to Purchase dated November 13, 2019 (the "Offer to Purchase") and the related notice of guaranteed delivery (collectively, the "Offer Documents"). The Tender Offer will expire at 5:00 p.m., New York City time, on November 19, 2019, unless extended or earlier terminated as described in the Offer to Purchase (such time and date, as they may be extended, the "Expiration Time").
WisdomTree's (WETF) divestiture of its Canadian subsidiary to CI Financial reflects the bank's streamlining activities in the Canadian market.
FS KKR Capital (FSK) delivered earnings and revenue surprises of 15.79% and 2.87%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?