First Eagle Alternative Capital BDC Announces Redemption of 6.75% Notes due 2022

Rhea-AI Summary

First Eagle Alternative Capital BDC (NASDAQ: FCRD) has announced the redemption of all outstanding 6.75% Notes due 2022 at a price of 100% of principal, plus accrued interest, effective June 21, 2021. Each $25 note will receive approximately $0.38 in interest. The notes are traded on the NYSE under the symbol FCRZ. Investors must present the notes to U.S. Bank for redemption. First Eagle specializes in lending to middle-market companies, focusing primarily on first lien secured loans.

Positive

• Redemption of 6.75% Notes at 100% principal plus accrued interest demonstrates financial stability.
• Effective date of redemption indicates a structured approach for managing liabilities.

Negative

• Redemption may imply the company's reliance on debt instruments, impacting cash flow.
• The accrued interest payout could affect short-term liquidity.

BOSTON, May 19, 2021 (GLOBE NEWSWIRE) -- First Eagle Alternative Capital BDC, Inc. (NASDAQ: FCRD) (“First Eagle Alternative Capital BDC” or the “Company”), a direct lender to middle market companies, today announced that it will redeem all of its outstanding 6.75% Notes due 2022 (the “2022 Notes”), at a redemption price of 100% of the outstanding principal amount of the 2022 Notes, plus accrued and unpaid interest to, but excluding, the date of redemption, June 21, 2021, of approximately $0.38 on each $25 principal amount if redeemed on June 21, 2021.

The 2022 Notes are currently traded on the New York Stock Exchange under the symbol “FCRZ” (CUSIP No. 26943B308).

As specified in the notice of redemption relating to the redemption of the 2022 Notes, payment of the redemption price will be made upon the presentation and surrender of the 2022 Notes for redemption to the paying agent, U.S. Bank, Corporate Trust Services, by hand or mail (including overnight mail) at 111 Fillmore Avenue E, St. Paul, MN 55107.

About First Eagle Alternative Capital BDC, Inc.

First Eagle Alternative Capital BDC, Inc. (NASDAQ: FCRD) is a closed-end management 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 investments in privately negotiated debt and equity securities of middle market companies. The Company is a direct lender to middle market companies and invests primarily in directly originated first lien senior secured loans, including unitranche investments. In certain instances, the Company also makes second lien secured loans and subordinated or mezzanine, debt investments, which may include an associated equity component such as warrants, preferred stock or other similar securities and direct equity co-investments. The Company targets investments primarily in middle market companies with annual EBITDA generally between $5 million and $25 million. The Company is headquartered in Boston, with additional origination teams in Chicago, Dallas, Los Angeles and New York. The Company’s investment activities are managed by First Eagle Alternative Credit, LLC (the “Advisor” or the “Adviser”), an investment adviser registered under the Investment Advisers Act of 1940. For more information, please visit www.FEACBDC.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. Such statements reflect various assumptions by the Company concerning anticipated results and are not guarantees of future performance. These statements can be identified by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” ”should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. These statements include but are not limited to, projected financial performance, expected development of the business, anticipated share repurchases or lack thereof, plans and expectations about future investments, plans and expectations concerning future offerings by the Company, including any tender offers, anticipated dividends and the future liquidity of the company. The accuracy of such statements involves known and unknown risks, uncertainties and other factors that, in some ways, are beyond management’s control, including the risk factors described from time to time in filings by the Company with the Securities and Exchange Commission (the “SEC”). Such factors include: the introduction, withdrawal, success and timing of business initiatives and strategies; 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 result in changes 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; the unfavorable 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 government agencies relating to us or the Advisor; the ability of the Advisor to identify suitable investments for us and to monitor and administer our investments; our contractual arrangements and relationships with third parties; any future financings by us; the ability of the Advisor to attract and retain highly talented professionals; fluctuations in foreign currency exchange rates; the impact of changes to tax legislation and, generally, our tax position; our ability to exit a control investment in a timely manner; and the ability to fund Logan JV’s unfunded commitments to the extent approved by each member of the Logan JV investment committee.

The Company undertakes no duty to update any forward-looking statements made herein. All forward-looking statements speak only as of the date of this press release.

Investor Contact:
First Eagle Alternative Credit, LLC
Michael Herzig
(212) 829-3101
michael.herzig@feim.com

Media Contact:
Stanton Public Relations and Marketing, LLC
Kenneth Mintz
(516) 468-8019
kmintz@stantonprm.com

FAQ

What is the redemption price for the 6.75% Notes due 2022 from FCRD?

The redemption price is 100% of the outstanding principal amount plus accrued interest.

When is the redemption date for FCRD's 2022 Notes?

The redemption date is June 21, 2021.

How much interest will be accrued on FCRD's 2022 Notes by the redemption date?

Approximately $0.38 will be accrued on each $25 principal amount.

Which entity manages the investment activities of First Eagle Alternative Capital BDC?

The investment activities are managed by First Eagle Alternative Credit.

Where should investors present the 2022 Notes for redemption?

Investors should present the notes to U.S. Bank, Corporate Trust Services.