Publicly-traded business development companies can expect growing pressure next year, with payment-in-kind volume predicted to rise as spreads tighten further, according to a Fitch Ratings report https://t.co/ZJVKKVL9l6 ...

Core Viewpoint - Advanced Flower Capital Inc. has received shareholder approval to convert from a real estate investment trust (REIT) to a business development company (BDC), which is expected to enhance its growth potential and shareholder value [1][2]. Group 1: Conversion Details - The conversion plan includes a new investment advisory agreement compliant with the Investment Company Act of 1940 and reduced asset coverage requirements for BDCs, aligning the company's leverage with industry standards [1]. - The conversion is anticipated to be completed in the first quarter of 2026, with the company continuing to trade under its existing Nasdaq ticker symbol, AFCG [3]. Group 2: Strategic Implications - The conversion to a BDC will enable the company to broaden its investment scope beyond real estate-backed loans, allowing it to pursue a wider range of market opportunities, which is expected to improve its ability to generate consistent, risk-adjusted returns [2]. Group 3: Company Background - Advanced Flower Capital Inc. specializes in originating, structuring, underwriting, and managing senior secured mortgage loans, particularly in the cannabis industry, with loans typically ranging from $10 million to over $100 million [4].

Core Viewpoint - Stellus Capital Investment Corporation has announced a public offering of $50.0 million aggregate principal amount of 7.25% notes due 2030, which will increase the total outstanding amount of these notes to $125.0 million [1][2]. Group 1: Offering Details - The new notes are an additional issuance of the 7.25% notes due 2030, which were initially issued on April 1, 2025, in an aggregate principal amount of $75.0 million [2]. - The new notes will be treated as a single series with the existing notes and will have the same terms, CUSIP number, and ranking [2]. - The closing of the transaction is subject to customary closing conditions, with expected delivery on or about September 25, 2025 [2]. Group 2: Use of Proceeds - The net proceeds from this offering are intended to repay a portion of the company's 4.875% notes due 2026, of which $100.0 million aggregate principal amount was outstanding as of September 19, 2025 [4]. Group 3: Management and Advisors - Raymond James & Associates, Inc. is acting as the lead book-running manager for this offering, with Goldman Sachs & Co. LLC, Keefe, Bruyette & Woods, Inc., and Oppenheimer & Co. Inc. serving as lead managers [3]. - Additional co-managers include Ladenburg Thalmann & Co. Inc., Academy Securities Inc., East West Markets, LLC, and TCBI Securities, Inc. [3]. Group 4: Company Overview - Stellus Capital Investment Corporation is an externally managed, closed-end, non-diversified investment management company regulated as a business development company under the Investment Company Act of 1940 [8]. - The company's investment objective is to maximize total return to stockholders through current income and capital appreciation by investing primarily in private lower middle-market companies [8].

Group 1 - The Company, Chicago Atlantic BDC, Inc., has declared a cash dividend of $0.34 per share for the quarter ending September 30, 2025 [1] - Key dates for the dividend include a record date of September 29, 2025, and a payment date of October 10, 2025 [1] - The Company has a dividend reinvestment plan (DRIP) that allows stockholders to reinvest dividends into additional shares unless they opt to receive cash [1] Group 2 - Chicago Atlantic BDC, Inc. is a specialty finance company regulated as a business development company under the Investment Company Act of 1940 [2] - The Company's investment objective is to maximize risk-adjusted returns on equity by primarily investing in direct loans to privately held middle-market companies, focusing on the cannabis sector [2] - The Company is managed by Chicago Atlantic BDC Advisers, LLC, which specializes in the cannabis industry and other niche sectors [2]

Core Insights - Portman Ridge Finance Corporation completed its merger with Logan Ridge Finance Corporation, enhancing its scale with total assets exceeding $600 million as of July 11, 2025 [5][8] - The company reported net investment income of $4.6 million, or $0.50 per share, for the second quarter of 2025, an increase from $4.3 million, or $0.47 per share, in the previous quarter [7][10] - A quarterly base distribution of $0.47 per share and a supplemental distribution of $0.02 per share were announced for the third quarter of 2025 [5][10] Financial Performance - Total investment income for the second quarter of 2025 was $12.6 million, up from $12.1 million in the first quarter of 2025 [5][10] - Net asset value (NAV) as of June 30, 2025, was $164.7 million, or $17.89 per share, compared to $173.5 million, or $18.85 per share, as of March 31, 2025 [5][10] - The company experienced net repayments and sales of approximately $6.1 million during the quarter, with deployments of about $10.9 million and sales and repayments of approximately $17.0 million [5][10] Investment Portfolio - The investment portfolio at fair value as of June 30, 2025, was $395.1 million, comprised of 96 different portfolio companies [10][12] - The debt investment portfolio, excluding investments in CLO Funds, equities, and joint ventures, totaled $323.1 million at fair value, spread across 25 different industries [10][12] - As of June 30, 2025, debt investments on non-accrual represented 2.1% of the company's investment portfolio at fair value [10][12] Merger and Rebranding - The merger with Logan Ridge is viewed as a transformational milestone, expected to provide increased scale, broader portfolio diversification, and enhanced financial flexibility [8][9] - Following the merger, the company will rebrand as BCP Investment Corporation and trade under the new ticker symbol "BCIC" [5][9] - The merger is anticipated to deliver compelling risk-adjusted returns for shareholders through cost savings and improved stock trading liquidity [5][8] Management Commentary - The CEO emphasized the focus on maintaining a high-quality portfolio and delivering long-term value to shareholders [7][8] - The company aims to leverage its enhanced scale and diversified portfolio to support stronger operating efficiency and improved shareholder outcomes over time [8][9]

Core Viewpoint - Golub Capital BDC reported steady earnings in Q3 FY2025, with adjusted net investment income per share at $0.39, aligning with analyst expectations, while the investment portfolio reached $8.96 billion, indicating active capital management and portfolio expansion despite some caution on unrealized depreciation and risk ratings [1][4]. Company Overview and Key Focuses - Golub Capital BDC specializes in customized financing solutions for middle-market companies in the U.S., primarily offering loans to businesses sponsored by private equity firms, focusing on senior secured, "one-stop," and equity investments [2]. - The company's growth is driven by consistent access to proprietary deal flow, rigorous underwriting and risk management, and strong relationships with private equity sponsors, supported by its affiliation with the broader Golub Capital platform [3]. Quarterly Highlights and Business Trends - The investment portfolio at fair value was $8.96 billion, with the number of portfolio companies increasing to 401. "One-stop" loans accounted for 86.9% of total assets, with $486.9 million committed in new loans [4]. - Non-GAAP adjusted net investment income per share matched analyst projections, while GAAP net income per share rose to $0.34 from $0.30 in the previous quarter, driven by higher interest and dividend income [5]. Shareholder Returns - Golub Capital BDC maintained a quarterly dividend of $0.39 per share, with the board declaring this distribution payable on September 29, 2025. The company also repurchased approximately 2.4 million shares for about $34.3 million [6]. Risk Metrics - Net asset value per share was $15.00, with a GAAP leverage ratio of 1.30x, slightly up from earlier in the year. Portfolio risk ratings showed a small increase in assets rated "below expectation," with the proportion rising from 8.9% to 9.0%, alongside unrealized depreciation of $15.0 million [7]. Outlook and Future Considerations - Management did not provide numeric guidance for future earnings or revenue but emphasized maintaining strong liquidity, disciplined origination, and continued shareholder returns through dividends and share buybacks [8]. - Future performance may depend on the company's ability to maintain disciplined underwriting, access high-quality deal flow, and manage risk-rated assets effectively, with investors monitoring trends in portfolio growth and risk metrics [9].

Core Points - Saratoga Investment Corp. is urging stockholders to vote their shares immediately to reduce solicitation costs associated with the upcoming Annual Meeting on September 25, 2025 [1][3] - The Company has distributed proxy materials for the Annual Meeting and stockholders as of July 29, 2025, are eligible to vote [1][2] Company Overview - Saratoga Investment is a specialty finance company that provides customized financing solutions primarily to U.S. middle-market businesses [4] - The Company invests mainly in senior and unitranche leveraged loans and mezzanine debt, with a focus on generating attractive risk-adjusted returns through current income and long-term capital appreciation [4] - Saratoga Investment is regulated as a business development company and is externally managed by Saratoga Investment Advisors, LLC [4] - The Company manages a $650 million collateralized loan obligation (CLO) fund that is in wind-down and co-manages a joint venture fund owning a $400 million CLO [4]

Core Insights - Gladstone Capital reported steady net investment income per share at $0.50, slightly above expectations, while GAAP revenue was $21.7 million, just below the consensus of $21.88 million [1][2] - The company experienced significant realized losses of $3.62 million, marking an $11.33 million swing from the previous quarter's gain [1][7] - Net Asset Value (NAV) per share decreased by 0.7% quarter over quarter, indicating pressure on asset values [1][2] Financial Performance - Net investment income remained stable at $11.3 million, with a slight increase of 0.9% from the previous quarter [2] - Total investments at fair value decreased by $11.38 million, or 1.5%, despite a $72.95 million investment in new portfolio companies, a 60% increase from the prior quarter [5][7] - The weighted average yield on interest-bearing investments rose to 12.8% from 12.6% in the prior quarter, reflecting improved portfolio returns [6] Dividend Policy - The quarterly dividend distribution was maintained at $0.495 per share, resulting in a 100% payout ratio, indicating a commitment to income stability for shareholders [12][13] - Monthly distributions of $0.165 per share were declared for Q4 FY2025, showing consistency in shareholder returns [13] Business Overview - Gladstone Capital focuses on providing debt and equity financing to lower middle market companies, primarily through secured first lien and second lien loans [3][10] - The company emphasizes credit quality, with over 70% of debt investments being first lien loans, which offer a layer of protection against credit losses [4][10] Strategic Developments - Management expanded its credit facility to $320 million to enhance flexibility and support future investments [8] - Following the quarter-end, the company closed $76.7 million in new investments and $16.6 million in add-ons, indicating confidence in capital redeployment [9][8] Future Outlook - Management did not provide explicit forward guidance but highlighted a strong deal pipeline and the expectation of reduced portfolio repayments, which could support future earnings growth [14]

Core Viewpoint - SLR Investment Corp. is set to release its financial results for Q2 2025 on August 5, 2025, with a conference call scheduled for August 6, 2025 [1][2][3] Company Overview - SLR Investment Corp. is a closed-end investment company classified as a business development company under the Investment Company Act of 1940 [4] - The company specializes in niche markets, primarily investing in leveraged U.S. middle market companies through cash flow senior secured loans, including first lien and second lien debt instruments, as well as asset-based loans [4]

Financial Performance - For the first quarter ended March 31, 2025, total investment income was approximately $11.9 million, with net investment income of approximately $7.6 million, or $0.34 per weighted average share [6][19]. - The net asset value (NAV) per share was $13.19 as of March 31, 2025, slightly down from $13.20 as of December 31, 2024, primarily due to dividend payments [7][9]. - Total net assets as of March 31, 2025, were $301.0 million, compared to $301.2 million as of December 31, 2024 [9]. Investment Activity - The company committed $32.3 million for four new credit facilities, with $20.8 million in aggregate par value advanced in the first quarter of 2025 [8]. - The investment portfolio had an aggregate fair value of approximately $289.3 million across 31 portfolio companies as of March 31, 2025 [8]. - The company funded $7.2 million in investments across four borrowers subsequent to the quarter end [7]. Credit Facility - On February 11, 2025, the company closed a new $100 million senior secured revolving credit facility, maturing in March 2028, with an interest rate of SOFR plus 3.00% and a floor of 6.00% [4]. Dividends - The company declared a cash dividend of $0.34 per share for the quarter ended March 31, 2025, payable on April 11, 2025, to shareholders of record as of March 28, 2025 [10]. - A similar dividend of $0.34 per share for the quarter ended June 30, 2025, is scheduled for payment on July 11, 2025 [10]. Management Commentary - The CEO noted a measured deployment strategy, with gross fundings by principal value reaching $52.8 million since October 1, 2024, and emphasized the focus on senior-secured lending in the lower-middle and middle markets [3].