Accent Food Services LLC : IIIQ 2020 Update

Fidus Investment (FDUS), the only BDC with exposure to Accent Food Services LLC, has just reported IIIQ 2020 results. (See the IIQ 2020 update here). Accent is the only non performing company in the BDC’s portfolio and was the subject of very direct questions from analysts about what’s happening at the business. The BDC’s CEO artfully avoided providing any hard details. Nonetheless, we know that FDUS reduced its valuation sharply to $5.3mn from $16.1mn. That’s a worrisome sign and that the junior capital provided by the BDC might be at risk to an almost complete loss.

We are maintaining the BDC Credit Reporter’s CCR 5 rating and the loss outlook is for a Severe or Full Write-Off.