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TCG BDC: 11.5% Yield And 17% Below Book

Published Sun, 08 Sep 2019 09:12:00 -0400 on Seeking Alpha

TCG BDC (CGBD) is a business development company ("BDC") that's externally managed by Carlyle GMS Investment Management and part of the Carlyle Group, which is a global alternative asset manager with $216 billion of AUM across ~360 investment vehicles providing CGBD access to scale, relationships and expertise, which has advantages including incremental fee income and higher investment yields.
CGBD was formerly known as Carlyle GMS Finance, Inc. and closed its IPO on June 19, 2017, selling 9 million shares with four lockup periods each releasing 25% of an additional ~52 million pre-IPO shares. Obviously, this puts “enormous technical pressure on the stock” as discussed by management in previous reports. Release dates have occurred on December 11, 2017, June 9, 2018 and December 6, 2018. Following approval by the Board, the final Release Date was changed from June 4, 2019, to May 13, 2019. Clearly, there are still some pre-IPO investors looking for liquidity, and now that all shares are available some will continue to sell each time the stock rallies.

CGBD Share Repurchases
On November 5, 2018, the Board approved a $100 million stock repurchase program at prices below reported NAV per share through November 5, 2019, and in accordance with the guidelines specified in Rule 10b-18 of the Exchange Act. The company has repurchased around $58 million worth of shares representing approximately $0.14 in NAV accretion for shareholders.
As of today, we have $58... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
MONROE CAPITAL 10.48   18.4 0.57 1.40 13.60
PENNANTPARK INVESTMENT 6.32   21.8 0.29 0.72 11.32
PROSPECT CAPITAL 6.71   16.8 0.40 0.72 10.76
APOLLO INVESTMENT 16.78   14.2 1.18 1.80 10.73
FIDUS INVESTMENT 14.84   8.8 1.69 1.56 10.53
HERCULES TECH GROWTH CAP 13.26   10.0 1.32 1.28 9.55
GLADSTONE CAPITAL 9.50   63.3 0.15 0.84 8.84
ARES CAPITAL 19.19   10.5 1.82 1.60 8.39
CAPITAL SOUTHWEST 21.81   12.2 1.78 1.60 7.21
GOLUB CAPITAL BDC 18.55   15.7 1.18 1.28 6.89
GLADSTONE INVESTMENT 12.34   7.4 1.67 0.82 6.73
MAIN STREET CAPITAL 43.18   16.8 2.57 2.46 5.69

MONROE CAPITAL - MRCC
MONROE CAPITAL - MRCC  


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