On March 17, 2020 – according to news sources – Internap Network Services Corp (“Internap”) – filed for Chapter 11. The publicly traded “colocation company” reported assets of $724m and debts of $785m. A restructuring agreement is already in place and – as usual – a debt for equity swap planned. Lenders holding at least 77% of the company’s debt have agreed to supply an additional $75mn in capital and greatly reduce debt outstanding in return for an unstated amount of equity.
We don’t know exactly where that leaves the only BDC with exposure, non-traded Business Development Corporation of America (BDCA). Total investment at cost is $11.8mn in the 2022 Term Loan. At 12/31/2019 that was already valued at (36%) discount. Now – according to Advantage Data – the market value is only 25% – a (75%) discount. This debt might be converting entirely into equity or partly. BDCA may be part of the new $75mn capital infusion, or not. What does seem certain, though, is that the BDC will be writing off about ($8mn) of its capital very shortly, given that the restructuring could be resolved shortly.