BDCs
January Update: Private Credit and BDCs
BDC data provided by the Advantage Data Workstation, a SOLVE product. For more information about our BDC data or our other products please contact marketpulse@solvefixedincome.com.
Welcome to the monthly recap report on Private Credit and Business Development Companies (BDCs). This report will provide a concise overview of key developments in the Private Credit/BDC space over the past month. It will cover recent Initial Public Offerings (IPOs), debt issuance by BDCs, earnings announcements, a quick recap on Saratoga, and upcoming events to watch out for. Let’s dive into the highlights of the month.
Recent IPOs
Business Development Companies (BDCs) managed rate hikes well, benefiting from higher yields and reduced bank lending. With the rate environment easing, they are better positioned to maintain dividend payments. In January, the Private Credit and BDC sector saw four IPOs, signaling ongoing investor enthusiasm and presenting fresh avenues for growth and investment in the Private Credit space.
| IPO Date | Symbol | Company Name | IPO Price |
| Jan 18, 2024 | PSBD | Palmer Square Capital BDC Inc. | $16.45 |
| Jan 24, 2024 | MSDL | Morgan Stanley Direct Lending Fund | $20.67 |
| Jan 25, 2024 | OBDE | Blue Owl Capital Corp. III | $15.25 |
| Jan 25, 2024 | NCDL | Nuveen Churchill Direct Lending | $18.05
|
The table provides a summary of BDCs IPO in January, 2024
Debt Issuance by BDCs
BDCs have been active in debt issuance, tapping into various financing options to support their investment strategies and portfolio growth. 6 BDCs have issued Senior notes amounting to 3.3 billion USD.
| Issue | Announce Date | Collateral Type | Amount Issued |
| Golub Capital BDC Inc. (USD) 6% 7/15/2029 | 1/30/2024 | Senior Unsecured Notes | 600 |
| Ares Capital Corp. (USD) 5.875% 3/1/2029 | 1/16/2024 | Senior Unsecured Notes | 1000 |
| HPS Corporate Lending Fund (USD) 6.75% 1/30/2029 144A | 1/23/2024 | Senior Unsecured Notes | 550 |
| Main Street Capital Corp. (USD) 6.95% 3/1/2029 | 1/10/2024 | Senior Unsecured Notes | 350 |
| Blackstone Private Credit Fund (USD) 6.25% 1/25/2031 | 1/18/2024
|
Senior Unsecured Notes | 500 |
| New Mountain Finance Corp. (USD) 6.875% 2/1/2029 | 1/25/2024 | Senior Notes | 300 |
The table provides a summary of debt issuance by BDCs in January, 2024
Earnings Calendar
The earnings season for BDCs is approaching, during which they will report their financial results for the previous quarter. BDCs serve as a valuable indicator for the Private Credit sector, and investors carefully track these earnings releases to gain insights into the performance of individual BDCs and broader trends in the private credit market. Here is a table summarizing the earnings dates for BDCs:
| BDC | Earnings Date | Estimated (*) |
| Capital Southwest Corp. | 1/29/2024 | |
| Gladstone Investment Corporation | 1/30/2024 | |
| Oaktree Specialty Lending Corp. | 2/1/2024 | |
| Gladstone Capital Corp. | 2/5/2024 | |
| Golub Capital | 2/5/2024 | |
| Prospect Capital | 2/6/2024 | |
| Pennant Park Investment | 2/6/2024 | |
| Pennant Park Floating Rate Capital | 2/6/2024 | |
| Ares Capital | 2/7/2024 | |
| PhenixFIN Corp. | 2/7/2024 | |
| Golub Capital BDC 3 Inc. | 2/9/2024 | * |
| Oaktree Strategic Credit Fund | 2/9/2024 | * |
| Investcorp Credit Management BDC | 2/12/2024 | |
| Prospect Floating Rate & Alternative Income Fund, Inc. | 2/13/2024 | * |
| Golub Capital Direct Lending Corp | 2/13/2024 | * |
| Hercules Capital Inc. | 2/14/2024 | |
| Sixth Street Specialty Lending, Inc. | 2/14/2024 | |
| Wellings Real Estate Income Fund | 2/14/2024 | * |
| Sixth Street Lending Partners | 2/19/2024 | * |
| MidCap Financial Investment Corp | 2/19/2024 | |
| Crescent Capital BDC Inc. | 2/20/2024 | |
| Main Street Capital Corp. | 2/21/2024 | |
| Goldman Sachs BDC | 2/21/2024 | |
| Barings BDC | 2/21/2024 | |
| Blue Owl Capital Corp | 2/22/2024 | |
| Barings Capital Investment Corp | 2/23/2024 | * |
| Barings Private Credit LLC | 2/23/2024 | * |
| Horizon Technology Finance Corp. | 2/26/2024 | |
| Blackrock TCP Capital Corp. | 2/26/2024 | |
| New Mountain Finance | 2/26/2024 | |
| FS KKR | 2/26/2024 | |
| Bain Capital Specialty Finance Inc. | 2/26/2024 | |
| SLR Investment Corp. | 2/26/2024 | |
| Stellus Capital Investment Corp. | 2/26/2024 | |
| Carlyle Secured Lending ( | 2/26/2024 | |
| Blackstone Secured Lending Fund | 2/26/2024 | * |
| Blue Owl Capital Corp. III | 2/26/2024 | |
| TriplePoint Venture Growth BDC Corp. | 2/28/2024 | |
| SLR HC BDC LLC | 2/28/2024 | * |
| SCP Private Credit Income BDC LLC | 2/28/2024 | * |
| Monroe Capital | 2/28/2024 | |
| Trinity Capital Inc. | 2/29/2024 | |
| Great Elm Capital Corp. | 2/29/2024 | |
| Fidus Investment Corp | 2/29/2024 | |
| BlackRock Direct Lending Corp. | 2/29/2024 | * |
| Phillip Street Middle Market Lending Fund LLC | 2/29/2024 | * |
| BlackRock Capital Investment Corporation | 2/29/2024 | |
| WhiteHorse Finance | 2/29/2024 |
Earnings Calendar
Quick Recap of Saratoga
In January, Saratoga announced its earnings, reporting 122 investments valued at $1.15 billion. It reported four non-accruals totaling $49 million, representing 4.21% of the portfolio’s cost. The top 10 investments, valued at $498 million, constituted 43% of the portfolio’s cost. Additionally, investments worth $41 million, or 3.6% of the portfolio, are set to mature in the next 12 months.
BDC Filing Season Recaps are written by Sourav Srimal, Andrew Robartes, and Nayan Raj. For more information about our BDC data or our other products please contact marketpluse@solvefixedincome.com.
Sourav Srimal
Senior Vice President
ssrimal@solvefixedincome.com
Andrew Robartes
Data Analyst
arobartes@solvefixedincome.com
Nayan Raj
Data Analyst
nraj@solvefixedincome.com
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