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Author: tytthus Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77395  
Subject: Re: MREIT selling for 60% of NAV Date: 3/17/2011 10:48 AM
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i've never heard of them. SBA loan programs can provide PCC with low cost, long tenured financing. many of the BDCs i follow have qualified as SBA lenders, though i've never heard of SBA 7(a) loans, perhaps a specific category?

aside from the small cap & low float issues that could lead to P/NAV discounts, they are hurt by the amount of floating rate debt they hold. i'm not sure about PCC, by BDCs that have SBA (SBIC) financing have fixed rates (around 5% currently) that reset yearly. i didn't see any info in PCC's PR about net spreads or terms of their debt, but if/when LIBOR rates start to go up, PCC should benefit pretty well.

best,
--tytthus
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