Docoh
Loading...

HCAP Harvest Capital Credit

Harvest Capital Credit Corp. is a closed-end, non-diversified management investment company, which engages in the provision of customized financing solutions to small and mid-sized businesses. Its products include senior secured debt, unitranche term loans, junior secured loans, subordinated debt investments, and minority equity co-investments. The company was founded by Richard Paul Buckanavage on November 14, 2012 and is headquartered in New York, NY.

Company profile

Ticker
HCAP
Exchange
CEO
Joseph Andrew Jolson
Employees
Incorporated
Location
SEC CIK

HCAP stock data

(
)

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

7 May 21
16 Oct 21
Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
9 Jun 21 Richard Anthony Sebastiao Common Stock Sale back to company Dispose D No No 0 14,570 0 0
9 Jun 21 William Edwin Alvarez Jr Common Stock Sale back to company Dispose D Yes No 0 1,190 0 0
9 Jun 21 William Edwin Alvarez Jr Common Stock Sale back to company Dispose D No No 0 3,658 0 0
9 Jun 21 Jolson Joseph A Common Stock Sale back to company Dispose D Yes No 0 35,768 0 0
9 Jun 21 Jolson Joseph A Common Stock Sale back to company Dispose D No No 0 30,000 0 0
9 Jun 21 Jolson Joseph A Common Stock Sale back to company Dispose D Yes No 0 864,273 0 0
9 Jun 21 Richard Paul Buckanavage Common Stock Sale back to company Dispose D No No 0 47,566 0 0
7 Aug 20 Jolson Joseph A Common Stock Buy Acquire P Yes No 3.95 2,800 11.06K 864,273

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

38.8% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 13 2 +550.0%
Opened positions 11 2 +450.0%
Closed positions 0 11 EXIT
Increased positions 0 0
Reduced positions 0 0
13F shares
Current Prev Q Change
Total value 14.71M 10.7M +37.4%
Total shares 2.32M 1.86M +25.0%
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners
Shares Value Change
JMP JMP 990.86K $5.72M 0.0%
Joseph A. Jolson Trust dtd 6/4/91 864.27K $4.99M 0.0%
Gables Capital Management 186.04K $1.61M NEW
Punch & Associates Investment Management 89.7K $776K NEW
Bulldog Investors 60.99K $528K NEW
BAC Bank Of America 54.56K $472K NEW
Citadel Advisors 23.17K $200K NEW
RY Royal Bank Of Canada 22.35K $193K NEW
Eastern Bank 14.57K $126K NEW
Advisor 10.52K $91K NEW
Largest transactions
Shares Bought/sold Change
Gables Capital Management 186.04K +186.04K NEW
Punch & Associates Investment Management 89.7K +89.7K NEW
Bulldog Investors 60.99K +60.99K NEW
BAC Bank Of America 54.56K +54.56K NEW
Citadel Advisors 23.17K +23.17K NEW
RY Royal Bank Of Canada 22.35K +22.35K NEW
Eastern Bank 14.57K +14.57K NEW
Advisor 10.52K +10.52K NEW
Geneos Wealth Management 950 +950 NEW
Covington Capital Management 459 +459 NEW

Financial report summary

?
Risks
  • We are dependent upon our investment adviser’s key personnel for our future success.
  • Our business model depends to a significant extent upon strong referral relationships of the principals of our investment adviser, and their inability to maintain or develop these relationships, as well as the failure of these relationships to generate investment opportunities, could adversely affect our business.
  • Our financial condition and results of operations depend on our ability to manage our business and our future growth effectively.
  • We provide debt and equity capital primarily to small and mid-sized companies, which may present a greater risk of loss than providing debt and equity capital to larger companies.
  • Because the majority of the loans we make and equity securities we receive are not publicly traded, there is uncertainty regarding the value of our privately held securities that could adversely affect our determination of our net asset value.
  • There are significant potential conflicts of interest which could impact our investment returns.
  • Our incentive fee may induce our investment adviser to pursue speculative investments.
  • Our base management fee may induce our investment adviser to incur leverage.
  • PIK interest earned increases our assets under management and, as a result, will increase the amount of base management fees and potential incentive fees payable by us to HCAP Advisors.
  • Regulations governing our operations and capital structure affect (and could limit) our ability to raise, and the way in which we may raise, additional capital.
  • Because we borrow money in connection with our investment activities, the potential for gain or loss on amounts invested in us is magnified and may increase the risk of investing in us, and our operating and investment activities may be restricted by the terms of our borrowing arrangements.
  • All of our assets are subject to security interests under the Credit Facility, and if we default on our obligations under the Credit Facility, we may suffer materially adverse consequences, including foreclosure on our assets.
  • Changes in interest rates may affect our cost of capital and net investment income.
  • Changes relating to the LIBOR calculation process may adversely affect the value of the LIBOR-indexed, floating rate debt securities in our portfolio and adversely affect our debt financing, which could have an adverse effect on our business, financial condition and results of operations.
  • The investment advisory and management agreement and the administration agreement with our investment adviser were not negotiated on an arm’s length basis and may not be as favorable to us as if they had been negotiated with an unaffiliated third party.
  • The involvement of our investment adviser’s investment professionals in our valuation process may create conflicts of interest.
  • Our investment adviser has the right to resign on 60 days’ notice, and we may not be able to find a suitable replacement within that time, resulting in a disruption in our operations that could adversely affect our financial condition, business and results of operations.
  • If we do not invest a sufficient portion of our assets in qualifying assets, we could fail to qualify as a BDC or be precluded from investing according to our current business strategy.
  • A failure on our part to maintain our qualification as a BDC would significantly reduce our operating flexibility.
  • We may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such income.
  • HCAP Equity Holdings, LLC, one of our wholly-owned taxable subsidiaries, has elected to be taxed as a C-Corporation, and future wholly-owned tax subsidiaries may elect to be taxed as C-Corporations, and may incur federal income tax expense.
  • Our operations and infrastructure are dependent on information systems, and systems failures could significantly disrupt our business, which may, in turn, negatively affect our liquidity, financial condition or results of operations.
  • We may expose ourselves to risks if we engage in hedging transactions.
  • Events outside of our control, including public health crises, may negatively affect our portfolio companies and the results of our operations.
  • We are currently operating in a period of capital markets disruption and economic uncertainty, which could limit our access to capital and result in a decision by lenders, including existing lenders, not to extend credit to us or decline to renew, extend or expand existing credit facilities.
  • If the current period of capital markets disruption and instability continues for an extended period of time, there is a risk that investors in our equity securities may not receive distributions consistent with historical levels or at all or that our distributions may not grow over time and a portion of our distributions may be a return of capital.
  • Our investments may be risky, and we could lose all or part of our principal.
  • The lack of liquidity in our investments may adversely affect our business.
  • Our failure to make follow-on investments in our portfolio companies could impair our investment in a portfolio company.
  • Because we generally do not hold controlling equity interests in our portfolio companies, we may not be in a position to exercise control over our portfolio companies or to prevent decisions by the management of our portfolio companies that could decrease the value of our investments.
  • Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and ability to make stockholder distributions and result in a decline in the market price of our shares.
  • An investment strategy focused primarily on privately held companies presents certain challenges, including the lack of available information about these companies, a dependence on the talents and efforts of only a few key portfolio company personnel and a greater vulnerability to economic downturns.
  • Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies.
  • There may be circumstances where our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims.
  • Second priority liens on collateral securing loans that we make to our portfolio companies may be subject to control by senior creditors with first priority liens. If there is a default, the value of the collateral may not be sufficient to repay in full both the first priority creditors and us.
  • Our portfolio is concentrated in a limited number of portfolio companies and industries, which will subject us to a risk of significant loss if any of these companies defaults on its obligations under any of its debt instruments or if there is a downturn in a particular industry.
  • Any unrealized depreciation we experience on our investment portfolio may be an indication of future realized losses, which could reduce our income available for distribution.
  • We may be subject to risks associated with "covenant-lite" loans.
  • We may be unable to invest a significant portion of the net proceeds from an offering of our securities, or from repayments by portfolio companies, on acceptable terms within an attractive time frame.
  • We may allocate the net proceeds from an offering and other cash on hand in ways with which you may not agree.
  • Shares of closed-end investment companies, including BDCs, may trade at a discount to their net asset value.
  • If our investments do not meet our performance expectations, our stockholders may not receive distributions or a portion of our distributions may be a return of capital.
  • The market price of our common stock may fluctuate significantly.
  • Sales of substantial amounts of our common stock in the public market may have an adverse effect on the market price of our common stock.
  • Stockholders may experience dilution in their ownership percentage if they do not participate in our dividend reinvestment plan.
  • You may receive shares of our common stock through the Company's dividend reinvestment plan, and we may otherwise choose to pay dividends in our common stock, in which case you may be required to pay tax in excess of the cash you receive.
  • Investing in our securities may involve an above average degree of risk.
  • If we issue preferred stock and/or debt securities, the net asset value and market value of our common stock may become more volatile or otherwise adversely affected.
  • The issuance of shares of preferred stock with dividend or conversion rights, liquidation preferences or other economic terms favorable to the holders of preferred stock could also adversely affect the market price for our common stock by making an investment in our common stock less attractive. In addition, except in limited circumstances, the 1940 Act imposes certain features onto any preferred stock we issue that may make an investment in our common stock less attractive or otherwise limit our operational flexibility, including:
  • The trading market or market value of our debt securities or any convertible debt securities, if issued to the public, may be volatile.
  • Terms relating to redemption may materially adversely affect the return on any debt securities.
  • The issuance of subscription rights, warrants or convertible debt that are exchangeable for our common stock, may cause your interest in us to be diluted as a result of any such rights, warrants or convertible debt offering.
  • Future offerings of debt securities, which would be senior to our common stock upon liquidation, or equity securities, which could dilute our existing stockholders and may be senior to our common stock for the purposes of distributions, may harm the value of our common stock.
  • The 2022 Notes are structurally subordinated to the indebtedness and other liabilities of our existing and future subsidiaries.
  • Economic recessions or downturns could impair our portfolio companies and harm our operating results.
  • Portfolio company litigation or other litigation or claims against us or our personnel could result in additional costs and the diversion of our management’s time and resources.
Management Discussion
  • depreciation. Net investment income is the difference between our income from interest, distributions, fees and other investment income and our operating expenses, including interest on borrowed funds. Net realized gain or loss on investments is generally the difference between the proceeds received from dispositions of portfolio investments and their amortized cost. Net change in unrealized appreciation or depreciation on investments is the net unrealized change in the fair value of our investment portfolio.
Content analysis
?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. senior Avg
New words: abetting, abstained, aforementioned, al, allege, alleged, allegedly, alleging, assign, award, Benchmark, billed, captioned, Chancery, complaint, concurrently, consent, consummate, consummation, convene, convey, correct, court, Crest, deadline, defend, dispose, District, Eastern, encumber, enjoin, false, fiduciary, foregoing, Greg, holder, IBA, ICE, incomplete, indirectly, ix, Kruchok, Kyle, Locked, member, merge, misleading, monetary, opportunity, pendency, phase, Portman, product, PTMN, purporting, putative, quotient, receipt, refinance, reimburse, reimbursed, reimbursement, requisite, rescissory, respond, Ridge, Ronald, Rye, Safety, satisfaction, sentence, show, Sierra, solicit, stage, Stewart, strategic, suffered, Superior, Supreme, surviving, swap, thereon, Thompson, timeline, Tornese, true, Trust, validly, verified, vigorously, volume, wrongdoing, York
Removed: Aid, alongside, amendment, Apr, authorized, cancelled, carryforward, Choice, corporate, CP, created, dated, Deluxe, DESG, detailed, easier, Entertainment, executed, expired, extinguished, fifteen, Finally, forgiven, formula, Granting, historically, holding, illiquidity, increasing, incurring, Intermediate, Media, Metal, mitigate, mortgage, newly, Northeast, partially, Paycheck, payroll, Pet, PPP, priority, producing, Protection, protective, rapidly, reclassified, redeem, referencing, refinancing, Release, repurchased, reversed, SBA, subordinate, subordination, support, transferred, utility, utilize, viewed, waived