ARC’s Business Development Corporation of America Registers 55 Million DRIP Shares
Business Development Corporation of America, a publicly registered non-traded business development company sponsored by AR Global Investments – the successor business to AR Capital, registered 55 million shares of common stock for its distribution reinvestment plan. The shares are priced at $8.97 each, according to a filing with Securities and Exchange Commission.
The company commenced its initial public offering in January 2011 and raised approximately $1.95 billion before closing the offering in April 2015. The annualized yield for distributions was 7.78 percent based on its then public offering price of $11.15 per share.
Business Development Corporation of America invests primarily in first and second lien senior secured loans and mezzanine debt issued by middle market companies. The company’s investment portfolio totals approximately $2.3 billion and consists of $1.4 billion of senior secured first lien debt, $349 million of senior secured second lien debt, $92.3 million of subordinated debt, $261.8 million of collateralized securities, and $202.3 million of equity and other investments.
BDCA was the focus of a proxy fraud scandal late last year. Its then-sponsor, AR Capital, and dealer manager, Realty Capital Securities, were also involved in a series of scandals which led to the termination of all AR Capital-sponsored investment programs and an agreement by RCS to terminate its business.
