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Beaten Down BDCs: Medley Capital

Medley Capital (NYSE:MCC) is probably one of the most badly beaten down BDCs. It closed Monday at $8.91, which is a 28.3% discount from net asset value (NAV) of $12.43 calculated as of the close of the most recently reported quarter -- September 30, 2014. It has paid a dividend of 37 cents per quarter for five quarters, which produces an annual dividend of $1.48, creating a dividend yield of 16.6%. MCC had a follow on offering to raise more capital for expansion last summer and sold 5,750,000 shares at an average price of $13.02. In addition, MCC has a very conservative asset mix consisting of 60% first lien secured loans and 29% second lien secured loans. In light of these statistics, it is clear that the enormous discount to NAV reflected in MCC's current price demonstrate that investors are concerned about MCC, anticipate write downs in its loan portfolio, and also anticipate a dividend…