THL Credit, Inc. is a business development company specializing in direct and fund of fund investments. The fund seeks to invest in debt and equity securities of middle market companies. It seeks to invest in PIPES, growth, acquisition, market or product expansion, recapitalization, mature, and change of control transactions in both sponsored and unsponsored issuers. The fund does not intend to invest in start-up companies, operationally distressed situations, or companies with speculative business plans. The fund invests primarily in debt securities, including unsecured subordinated or mezzanine debt and second lien secured debt, which may include an associated equity component such as warrants, preferred stock, options to buy minority interest, and other similar securities. Its investments may also include high-yield bonds, private equity investments, securities of public companies that are broadly traded, and securities of non-United States companies. It seeks to invest in outsourced business services, healthcare, financials, retailing, media, and consumer discretionary. The fund may make direct equity investments, including equity investments into or through funds, and also selectively invest in syndicated first lien secured loans, including unitranche investments. It seeks to invest between $10 million and $25 million of capital per transaction in companies with annual revenues ranging from $25 million to $500 million and annual EBITDA between $5 million and $25 million. The fund prefers to be a lead or sole investor in a transaction.
Industry, Sector and Symbol
Stock Exchange NASDAQ
Industry Investors, not elsewhere classified
Sub-IndustryAsset Management & Custody Banks
SectorFinance
SymbolNASDAQ:TCRD
CUSIP87243810
Phone800-450-4424
Debt
Debt-to-Equity Ratio0.43
Current Ratio0.29
Quick Ratio0.29
Price-To-Earnings
Trailing P/E Ratio6.47
Forward P/E Ratio6.81
P/E GrowthN/A
Sales & Book Value
Annual Sales$78.77 million
Price / Sales3.25
Cash Flow$1.1583 per share
Price / Cash6.76
Book Value$10.53 per share
Price / Book0.74
Profitability
EPS (Most Recent Fiscal Year)$1.21
Net Income$-7,900,000.00
Net Margins-8.89%
Return on Equity11.15%
Return on Assets6.15%
Miscellaneous
EmployeesN/A
Outstanding Shares32,670,000
Market Cap$255.83 million
THL Credit (NASDAQ:TCRD) Frequently Asked Questions
What is THL Credit's stock symbol?
THL Credit trades on the NASDAQ under the ticker symbol "TCRD."
How often does THL Credit pay dividends? What is the dividend yield for THL Credit?
THL Credit declared a quarterly dividend on Thursday, August 9th. Shareholders of record on Friday, September 14th will be given a dividend of $0.27 per share on Friday, September 28th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 13.79%. The ex-dividend date is Thursday, September 13th. View THL Credit's Dividend History.
How will THL Credit's stock buyback program work?
THL Credit declared that its board has authorized a share repurchase program on Thursday, April 6th 2017, which authorizes the company to repurchase $20,000,000.00 in outstanding shares, according to EventVestor. This repurchase authorization authorizes the company to repurchase up to 5.9% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's board of directors believes its shares are undervalued.
How were THL Credit's earnings last quarter?
THL Credit, Inc. (NASDAQ:TCRD) posted its quarterly earnings data on Wednesday, August, 8th. The investment management company reported $0.31 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.04. The investment management company had revenue of $18.36 million for the quarter, compared to analysts' expectations of $16.92 million. THL Credit had a positive return on equity of 11.15% and a negative net margin of 8.89%. View THL Credit's Earnings History.
When is THL Credit's next earnings date?
What price target have analysts set for TCRD?
4 equities research analysts have issued twelve-month price targets for THL Credit's stock. Their predictions range from $9.00 to $11.50. On average, they expect THL Credit's share price to reach $10.00 in the next twelve months. This suggests a possible upside of 27.7% from the stock's current price. View Analyst Price Targets for THL Credit.
What is the consensus analysts' recommendation for THL Credit?
4 Wall Street analysts have issued "buy," "hold," and "sell" ratings for THL Credit in the last year. There are currently 4 hold ratings for the stock, resulting in a consensus recommendation of "Hold." View Analyst Ratings for THL Credit.
What are Wall Street analysts saying about THL Credit stock?
Here are some recent quotes from research analysts about THL Credit stock:
- 1. According to Zacks Investment Research, "THL Credit Inc. is a newly-organized, externally-managed, non-diversified closed-end management investment company that has filed an election to be treated as a business development company. The Company's investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated debt and equity securities of middle market companies. The Company invests primarily in private subordinated debt, or mezzanine debt, in middle market companies that require capital for growth and acquisitions. Such investments in many cases include an associated equity component such as warrants, preferred stock or other similar securities. The Company's investment activities are managed by its investment adviser, THL Credit Advisors LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended. " (10/10/2018)
- 2. National Securities analysts commented, " TCRD earned NII/share of $0.31 for 2Q18, above our estimate of $0.28 and the quarterly dividend of $0.27. The beat was primarily driven by prepayment-related income as accretion of discounts and other fees increased to $1.2 million from $700,000 Q/Q and prepayment premiums increased to $300,000 from $100,00.
Non-accruals at cost decreased to $9.7 million or 1.7% of the portfolio from $42.6 million or 6.7% of the portfolio. Charming Charlie, Aerogroup, and Specialty Brands all came off non-accrual although the two remaining non-accruals, Tri Starr and Loadmaster Derrick, were marked down slightly more Q/Q.
Non-sponsor investments still comprise 15% of the portfolio and as a result we think that this will keep the valuation of shares muted even if no further non-accruals pop up until these legacy investments eventually roll off or get sold. We think that NAV/share will decrease to $10.07 at the end of 2018 before stabilizing through 2H19 to finish the year at $10.04.
When these investments do roll off or are sold which we expect to be largely complete by the end of 1H19, we expect the yield on on-balance sheet investments to decline. However, an offset to the decline in yield we model from fewer legacy investments and more of a first lien focus should be increases in the Logan JV which finished 6/30/18 at 15.0% of the portfolio at cost and a yield of 14.4%. We expect Logan to comprise 18.4% of the portfolio at cost in 4Q18 and 28.4% in 4Q19. We model the quarterly dividend to be cut to $0.23/share from $0.27/share in 3Q19 upon resumption of the incentive fee.
We are revising 2018 NII/share estimate to $1.13 from $1.12 and our 2019 NII/share estimate to $1.04 from $1.05. We are maintaining our NEUTRAL rating and our $10 price target." (8/14/2018)
- 3. Maxim Group analysts commented, "While TCRD covered the dividend with core NII (even with a smaller investment portfolio), investment losses reduced EPS to below the dividend, so net asset value (NAV) was down 1.2%. Based on core NII of $0.28 covering the dividend in 3Q17, and on TCRD’s agreement to waive up to 25% of incentive fees in 2018 to the extent necessary to cover its $0.27 quarterly dividend, we are introducing 2018 dividend and EPS estimates of $1.08. Our price target equates to 1.0x NAV, which is inline with relevant peers." (11/10/2017)
Who are some of THL Credit's key competitors?
Some companies that are related to THL Credit include New Mountain Finance (NMFC), PennantPark Investment (PNNT), Pennantpark Floating Rate Capital (PFLT), Gladstone Investment (GAIN), Capital Southwest (CSWC), Oaktree Strategic Income (OCSI), Arlington Asset Investment (AI), Triplepoint Venture Growth BDC (TPVG), Stellus Capital Investment (SCM), Safeguard Scientifics (SFE), OFS Capital (OFS), Capitala Finance (CPTA), Garrison Capital (GARS), Amern Cap Sr Fl/COM (ACSF) and Firsthand Technology Value Fund (SVVC).
Who are THL Credit's key executives?
THL Credit's management team includes the folowing people:
- Mr. Christopher J. Flynn, Chief Exec. Officer (Age 45)
- Mr. Terrence William Olson, Assistant Sec., Treasurer, CFO & COO (Age 51)
- Ms. Sabrina Rusnak-Carlson, Gen. Counsel and Chief Compliance Officer
- Mr. Howard H. Wu, Co-Head of Direct Lending and Director (Age 39)
- Mr. Brian W. Good, Co-Head, Sr. Managing Director and Sr. Portfolio Mngr for Tradable Credit Platform
How do I buy shares of THL Credit?
Shares of TCRD can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Scottrade, Fidelity and Charles Schwab.
What is THL Credit's stock price today?
One share of TCRD stock can currently be purchased for approximately $7.83.
How big of a company is THL Credit?
THL Credit has a market capitalization of $255.83 million and generates $78.77 million in revenue each year. The investment management company earns $-7,900,000.00 in net income (profit) each year or $1.21 on an earnings per share basis.
What is THL Credit's official website?
How can I contact THL Credit?
THL Credit's mailing address is 100 FEDERAL STREET 31ST FLOOR, BOSTON MA, 02110. The investment management company can be reached via phone at 800-450-4424 or via email at jhunt@thlcredit.com.
MarketBeat Community Rating for THL Credit (NASDAQ TCRD)
MarketBeat's community ratings are surveys of what our community members think about THL Credit and other stocks. Vote "Outperform" if you believe TCRD will outperform the S&P 500 over the long term. Vote "Underperform" if you believe TCRD will underperform the S&P 500 over the long term. You may vote once every thirty days.
