BOSTON, April 19, 2022 (GLOBE NEWSWIRE) — First Eagle Alternative Capital BDC, Inc. (NASDAQ: FCRD) (“First Eagle Alternative Capital BDC” or the “Company”) is pleased to announce First Eagle Logan JV, LLC (“Logan JV”), a joint venture with the Company and Perspecta Trident LLC, a subsidiary of Jordan Park, has closed LJV I MM CLO LLC (the “CLO”), a $300.6 million CLO with a period 3-year reinvestment.
“The closing of this CLO provides a more efficient and flexible source of leverage for the Logan Joint Venture,” said Chris Flynn, President of First Eagle Alternative Credit, LLC (the “Advisor”). “We anticipate this will help improve returns for both the company and Logan JV, while providing BDC with the opportunity to further improve portfolio diversification by decreasing equity investment in Logan JV and reinvesting the return of the capital in new direct loan investments.”
As a reminder, the advisor has voluntarily agreed to waive management fees up to an amount necessary to maintain at least $0.10 per share net investment income for the second quarter to partially offset the impact of one-time costs. related to the closing of the CLO. For more details, see the Advisor’s previous press release dated March 14, 2022.
Logan JV retained $36,600,000 of subordinated notes and $21,500,000 of Class E notes issued by the CLO. The Company’s advisor is the collateral manager for the CLO and Deutsche Bank Securities Inc. acted as arranger. The reinvestment period ends in April 2025 with a maturity of eleven years.
The CLO refinanced the JV Logan credit line. The debt issued in the CLO (the “Notes”) is structured as follows:
The Securities offered under the CLO have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) or any state or foreign securities laws. Accordingly, the Securities may not be offered or sold in the United States to, or for the account or benefit of, “US Persons” (as defined in Regulation S of the Securities Act) except pursuant to an exemption from , or in connection with a transaction not subject to the registration requirements of the Securities Act and applicable state securities laws. This press release will not constitute an offer to sell or a solicitation of an offer to buy and there will be no sale of the Securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or territory.
About First Eagle Alternative Capital BDC, Inc. First Eagle Alternative Capital BDC, Inc. (NASDAQ: FCRD) is a closed-end investment company that has elected to be treated as a business development company under the 1940 Act. The Company’s investment objective is to generate both current income and capital appreciation primarily through investment in privately traded debt and equity securities of middle market companies. The Company is a direct lender to middle market businesses and invests primarily in directly issued senior secured senior loans, including unitranche investments. In some cases, the Company also provides second lien secured loans and subordinated or mezzanine debt investments, which may include an associated equity component such as warrants, preferred shares or other similar securities and co -direct investments in shares. The Company targets investments primarily in mid-market companies with annual EBITDA typically between $5 million and $25 million. The company is headquartered in Boston, with additional assembly crews in Chicago, Dallas, Los Angeles and New York. The Company’s investment activities are managed by First Eagle Alternative Credit, LLC (the “Advisor”), a registered investment adviser under the Investment Advisers Act of 1940. For more information, please visit www.feac.com.
Forward-Looking Statements Statements made in this press release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements reflect various assumptions of the Company regarding the expected results. and are not guarantees of future performance. These statements can be identified by the use of words such as “outlook”, “believe”, “expect”, “potential”, “continue”, “may”, “will”, “should”, “seek “, “approximately”. ,” “predicts”, “intends”, “plans”, “estimates”, “anticipates” or the negative version of these words or other comparable words. Such statements include, but are not limited to, projected financial performance, expected development of the business, planned share buybacks or lack thereof, plans and expectations regarding future investments, plans and expectations regarding future offerings by the Company, including offers takeover bids, anticipated dividends and future liquidity of the business. The accuracy of these statements involves known and unknown risks, uncertainties and other factors that, in some respects, are beyond the control of management, including the risk factors described from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”). These factors include: the introduction, withdrawal, success and timing of initiatives and strategy s commercial; changes in political, economic or industry conditions, the impact of COVID-19 and the availability of effective vaccines, the interest rate environment or financial and capital markets, which could cause variations in the value of our assets ; the relative and absolute investment performance and operations of our investment adviser; the impact of increased competition; the impact of future acquisitions and divestitures; adverse resolution of legal proceedings; our business prospects and the prospects of our portfolio companies; the impact, extent and timing of technological changes and the adequacy of intellectual property protection; the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of governmental agencies affecting us or the Advisor; the ability of the adviser to identify suitable investments for us and to monitor and administer our investments; our contractual arrangements and relationships with third parties; any future funding from us; the advisor’s ability to attract and retain highly talented professionals; fluctuations in foreign currency exchange rates; the impact of changes in tax laws and generally on our tax position; our ability to exit a controlling investment in a timely manner; and the ability to fund unfunded commitments of Logan JV to the extent approved by each member of the investment committee of Logan JV. The Company undertakes no obligation to update any forward-looking statements made herein. All forward-looking statements speak only as of the date of this press release.
Additional Information and Where to Find It This press release is provided for informational purposes only, does not constitute a recommendation to buy or sell securities of First Eagle Alternative Capital BDC, Inc., and does not constitute an offer to buy or a solicitation to sell any securities of First Eagle Alternative Capital BDC, Inc.
Investor Contact: First Eagle Alternative Credit, LLC Leigh Crosby (617) 790-6060 [email protected]
Media Contact: Stanton Public Relations and Marketing, LLC Charlyn Lusk (646) 502-3549 [email protected]