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|
|HERCULES TECH GROWTH CAP||13.26||10.0||1.32||1.28||9.55|
|GOLUB CAPITAL BDC||18.55||15.7||1.18||1.28||6.89|
|MAIN STREET CAPITAL||43.18||16.8||2.57||2.46||5.69|
Older articles featuring Monroe Capital (MRCC):Digging Into The Credit Profile For 10.7% Yielding BlackRock TCP Capital
TLT Shorts Should Be Long This 10%+ Yielding Sector
Still Waiting For A Dividend Increase From Oaktree
Assessing Risk: Retirement Portfolio Using BDCs Yielding 10%+
Building A Retirement Portfolio With BDCs Currently Yielding 10.6%
Prospect Capital: Upcoming Credit Issues And 11%+ Yielding Replacement
Yield-Starved Investors Still Accumulating BDCs Paying More Than 10% Annually
10% Yielding New Mountain Finance Receives Fitch Rating
Apollo Investment: 12% Yield Supported By Improving Portfolio Quality
Strong Buy With 12% Yield With 30%+ Return Potential: TCG BDC