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BDC ACTIVIST: Is Alcentra Capital Raising Non Accretive Debt Capital ?

The BDC Activist reports on new issuance of medium term, unsecured Notes by Alcentra Capital (ABDC) at all-in rates around 6.5%. We question the benefits to shareholders-if any-from issuing this debt capital given the high interest rate paid, the ensuing cost in management and incentive fees and other factors. Part of a general trend in the BDC sector of raising Non Accretive Capital.

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BDC CREDIT REPORTER: BlackRock Capital And The Long Road Ahead

The BDC Credit Reporter discussed the credit problems at BlackRock Capital (BKCC) after the release of its quarterly filing but before the ensuing Conference Call. After listening to the management and spending more time with the data, we make some additional comments about BKCC’s under-performing AND performing investments, and discuss the likely way forward.

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BDC CREDIT REPORTER: Morning Update-Gymboree Corporation

The BDC Credit Reporter reviews a multitude of company filings every morning, looking for news about under-performing BDC borrowers. This article is about Gymboree Corporation-yet another retailer with problems-which has just borrowed from Peter to pay Paul. We discuss developments and look at BDC exposure to the Company.

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BDC CREDIT REPORTER: Update on the unraveling Sports Authority Chapter 11 bankruptcy.

The BDC Credit Reporter adds another sad story about Retail Gone Wrong. Unfortunately, Sports Authority-already in Chapter 11-has given up trying to emerge therefrom and is heading for liquidation. Thousands of employees will lose their jobs and $1.1bn in debt is in question. 4 BDCs have exposure to the Company. However, the BDC with the greatest to lose is TPG Specialty (TSLX)…

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