Benefit Street Partners LLC has agreed to purchase the investment portfolio of Triangle Capital Corporation (NYSE: TCAP), a publicly traded business development company, for $981.2 million in cash. Certain Benefit Street-advised funds, including Business Development Corporation of America, intend to participate in the transaction.
BDCA, a non-traded business development company previously affiliated with AR Global, is currently managed by Benefit Street affiliate BDCA Adviser LLC. BDCA plans to purchase a portion of the portfolio, although the final asset allocation has yet to be determined. The transaction, which must still be approved by Triangle stockholders, is expected to close in June or July of 2018.
In other company news, BDCA increased the borrowing limit under its Wells Fargo credit facility from $400 million to $500 million, and subsequently borrowed $90.6 million to repay a debt financing facility with UBS AG, London Branch.
Benefit Street is the credit investment arm of Providence Equity Partners and has more than $23 billion in assets under management.
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. As of the fourth quarter of 2017, BDCA’s portfolio consisted of nearly $2.5 billion in investments, according to Summit Investment Research.