BDCA Reinstates Distribution Reinvestment Program, Amends Share Repurchases
The board of Business Development Corporation of America, a non-traded business development company affiliated with Benefit Street Partners, has reinstated the company’s distribution reinvestment program, which had been temporarily suspended.
The board of Business Development Corporation of America, a non-traded business development company affiliated with Benefit Street Partners, has reinstated the company’s distribution reinvestment program, which had been temporarily suspended.
BDCA declared a regular quarterly cash dividend of $0.10 per share, paid on July 6, 2020 to stockholders of record as of June 30, 2020.
The board also amended the share repurchase program so that tender offers will be conducted on an annual basis, instead of on a semi-annual basis as was done previously. The BDC expects to begin its next tender offer under the share repurchase program in December 2020.
In late April, BDCA changed the timing of its dividend payments from a monthly to a quarterly basis, as reported by The DI Wire.
BDCA primarily invests in senior secured loans, and to a lesser extent, mezzanine loans, unsecured loans and equity of private middle-market companies. The company commenced its initial public offering in January 2011 and raised $1.9 billion before closing the offering in April 2015. Combined with distribution reinvestment plan proceeds, the company has raised $2.3 billion as of December 31, 2019.
Franklin Resources Inc. [NYSE: BEN], a global investment management organization operating as Franklin Templeton Investments, purchased Benefit Street Partners, an affiliate of the BDCA’s advisor, in February 2019. Benefit Street acquired all of the outstanding interests of BDCA’s adviser from AR Global in November 2016 by purchasing $10 million of company common stock.
