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
Industry Investors, not elsewhere classified
Sub-IndustryAsset Management & Custody Banks
SectorFinance
Phone800-450-4424
Debt
Price-To-Earnings
Sales & Book Value
Annual Sales$66.94 million
Profitability
Miscellaneous
EmployeesN/A
Next Earnings Date5/1/2019 (Estimated)
OptionableOptionable
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 announced a quarterly dividend on Thursday, March 7th. Shareholders of record on Wednesday, March 20th will be given a dividend of $0.21 per share on Friday, March 29th. This represents a $0.84 dividend on an annualized basis and a yield of 12.90%. The ex-dividend date of this dividend is Tuesday, March 19th. View THL Credit's Dividend History.
How will THL Credit's stock buyback program work?
THL Credit announced that its Board of Directors has approved a stock repurchase program on Thursday, April 6th 2017, which allows the company to repurchase $20,000,000.00 in outstanding shares, according to EventVestor. This repurchase authorization allows the company to buy up to 5.9% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.
How were THL Credit's earnings last quarter?
THL Credit, Inc. (NASDAQ:TCRD) posted its earnings results on Wednesday, March, 6th. The investment management company reported $0.23 earnings per share for the quarter, missing the Zacks' consensus estimate of $0.27 by $0.04. The investment management company earned $15.80 million during the quarter, compared to analysts' expectations of $15.97 million. THL Credit had a negative net margin of 15.79% and a positive return on equity of 10.69%. View THL Credit's Earnings History.
When is THL Credit's next earnings date?
What price target have analysts set for TCRD?
2 brokerages have issued 12-month price targets for THL Credit's shares. Their predictions range from $8.00 to $8.00. On average, they expect THL Credit's share price to reach $8.00 in the next year. This suggests a possible upside of 22.9% from the stock's current price. View Analyst Price Targets for THL Credit.
What is the consensus analysts' recommendation for THL Credit?
2 Wall Street analysts have issued "buy," "hold," and "sell" ratings for THL Credit in the last year. There are currently 2 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. " (3/13/2019)
- 2. National Securities analysts commented, "▪ THL’s NAV/share declined to $9.15 from $10.10 Q/Q and $10.51 Y/Y. The company had $6.4mm of net realized gains versus unrealized depreciation of $36.7mm in 4Q18. Charming Charlie and LAI accounted for over 60% of the quarterly NAV decline and Charming Charlie had its term loans placed on non-accrual status.
▪ Charming Charlie had a liquidity crunch for the 12/31/18 quarter that was remedied in part by THL refinancing a loan to them and providing an extended runway for management to perform while LAI is in an active sales process expected to be concluded in the next 45-60 days.
▪ The non-sponsor portion of THL’s book was 10% at 12/31/18 compared to 15% Q/Q and 16% Y/Y. We expect that despite the significant progress made by the company in exiting legacy investments, there is still a decent amount of inherent risk left in the portfolio that could potentially be subject to further write-downs. In our opinion, this should keep shares at a decent discount to NAV.
▪ The quarterly dividend was cut to $0.21/share from $0.27/share previously. We expected the cut to occur in 3Q19 but also expected to be more severe to $0.19/share. The advisor will now waive any earned incentive fees for all of 2019. At the June shareholders meeting, THL will seek two separate votes that are not conditional on each other. One is to lower the base fee to 100 bps from 150 bps of gross assets less cash and the incentive fee to 17.5% from 20.0% while maintaining the 8% hurdle. The other vote will be to permit THL to reduce its asset coverage to 150% from 200%.
▪ We expect shareholders to vote in approval for both of these measures. Despite the poor performance of TCRD the past few years, the reduced asset coverage should free up the 30% basket and allow Logan to grow further which would enhance the overall yield of the portfolio as well as the Sharpe ratio as we see it. THL is also implementing a $15mm 10b5-1 repurchase program. We respect that the company is doing the right thing with fee reductions and capital management, but for the time being we expect these to be eclipsed by the fear of further NAV declines stemming from more credit issues potentially popping up.
▪ We are revising our 2019 NII/share estimate to $0.99 from $0.95 as a result of no incentive fee being taken during the year and our expectation of lower base fees in 2H19. We are rolling out our 2020 NII/share estimate of $0.86." (3/11/2019)
Has THL Credit been receiving favorable news coverage?
Media headlines about TCRD stock have trended somewhat negative recently, according to InfoTrie Sentiment Analysis. InfoTrie identifies negative and positive news coverage by analyzing more than six thousand blog and news sources in real time. The firm ranks coverage of publicly-traded companies on a scale of negative five to positive five, with scores nearest to five being the most favorable. THL Credit earned a news sentiment score of -1.1 on InfoTrie's scale. They also gave news articles about the investment management company a news buzz of 10.0 out of 10, indicating that recent news coverage is extremely likely to have an effect on the company's share price in the next several days.
Who are some of THL Credit's key competitors?
Some companies that are related to THL Credit include Pennantpark Floating Rate Capital (PFLT), PennantPark Investment (PNNT), Gladstone Investment (GAIN), Capital Southwest (CSWC), Triplepoint Venture Growth BDC (TPVG), Arlington Asset Investment (AI), Oaktree Strategic Income (OCSI), Stellus Capital Investment (SCM), Safeguard Scientifics (SFE), OFS Capital (OFS), KCAP Financial (KCAP), Capitala Finance (CPTA), Garrison Capital (GARS), CM Finance (CMFN) and Firsthand Technology Value Fund (SVVC).
What other stocks do shareholders of THL Credit own?
Who are THL Credit's key executives?
THL Credit's management team includes the folowing people:
- Mr. Christopher J. Flynn, Chief Exec. Officer (Age 46)
- Mr. Terrence William Olson, Assistant Sec., Treasurer, CFO & COO (Age 52)
- Ms. Sabrina Rusnak-Carlson, Gen. Counsel and Chief Compliance Officer
- Mr. Howard H. Wu, Co-Head of Direct Lending and Director (Age 40)
- Mr. Brian W. Good, Co-Head, Sr. Managing Director and Sr. Portfolio Mngr for Tradable Credit Platform
Who are THL Credit's major shareholders?
THL Credit's stock is owned by many different of institutional and retail investors. Top institutional investors include Fiera Capital Corp (3.66%), LSV Asset Management (2.93%), Confluence Investment Management LLC (2.60%), West Family Investments Inc. (2.34%), Fort Washington Investment Advisors Inc. OH (1.21%) and Athena Capital Advisors LLC (0.98%). Company insiders that own THL Credit stock include Christopher J Flynn, James R Fellows, Jane Musser Nelson, Sabrina Rusnak-Carlson, Sam W Tillinghast and Terrence W Olson. View Institutional Ownership Trends for THL Credit.
Which major investors are selling THL Credit stock?
TCRD stock was sold by a variety of institutional investors in the last quarter, including Advisors Asset Management Inc., Confluence Investment Management LLC, Shikiar Asset Management Inc., Nuveen Fund Advisors LLC, Bank of America Corp DE, BB&T Securities LLC, Cliffwater LLC and Raymond James Financial Services Advisors Inc.. View Insider Buying and Selling for THL Credit.
Which major investors are buying THL Credit stock?
TCRD stock was purchased by a variety of institutional investors in the last quarter, including Fiera Capital Corp, LSV Asset Management, West Family Investments Inc., Fort Washington Investment Advisors Inc. OH, Two Sigma Investments LP, HRT Financial LLC, Two Sigma Advisers LP and B. Riley Wealth Management Inc.. Company insiders that have bought THL Credit stock in the last two years include Christopher J Flynn, James R Fellows, Jane Musser Nelson, Sabrina Rusnak-Carlson, Sam W Tillinghast and Terrence W Olson. View Insider Buying and Selling for THL Credit.
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 $6.51.
How big of a company is THL Credit?
THL Credit has a market capitalization of $212.68 million and generates $66.94 million in revenue each year. The investment management company earns $-10,600,000.00 in net income (profit) each year or $1.07 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 [email protected]
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.
