BDCA Sells $100 Million of 6.00% Senior Notes
Business Development Corporation of America, a non-traded business development company sponsored by AR Capital, entered into a purchase agreement relating to the company’s sale of $100 million aggregate principal amount of its 6.00 percent fixed rate senior notes due 2020 in a private placement and for initial resale to qualified institutional buyers.
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The purchasers are Sandler O’Neill & Partners LP, Keefe, Bruyette & Woods Inc., UBS Securities, William Blair & Company LLC, and Ladenburg Thalmann & Co. Inc, according to a filing with the Securities and Exchange Commission.
The net proceeds from the sale of the notes was approximately $97.9 million, after deducting initial purchasers’ discounts and commissions of approximately $1.6 million payable by the company and estimated offering expenses of approximately $500,000. The company intends to use the net proceeds to make investments in accordance with their investment objectives and for general corporate purposes.
The notes were issued pursuant to an indenture, dated as of August 31, 2015, between Business Development Corporation of America and U.S. Bank N.A. as trustee. The notes will mature on September 1, 2020, and may be redeemed in whole or in part at the company’s option at any time, or from time to time, at the redemption prices set forth in the Indenture. The notes bear interest at a rate of 6.00 percent per year payable semi-annually on March 1 and September 1 of each year, commencing on March 1, 2016.
In addition, if a change of control repurchase event occurs prior to maturity, note holders will have the right, at their option, to require the company to repurchase for cash some or all of the notes at a repurchase price equal to 100 percent of the principal amount of the notes being repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date.
Yesterday, The DI Wire reported the pricing of the senior notes. To read more, click here.
Business Development Corporation of America is a non-traded business development company that invests in both the debt and equity of private middle market companies. The company is closed to new investments.
