Business Development Corporation of America, a publicly registered non-traded business development company, has priced an offering of $60 million aggregate principal amount of 5.375 percent senior unsecured notes. The offering is expected to close on May 16, 2018.
The notes will mature on May 30, 2023 and bear interest at a rate of 5.375 percent per year payable semiannually in arrears on May 30 and November 30 of each year, beginning on November 30, 2018.
BDCA estimates that the net proceeds from the offering will be approximately $58.7 million, and plan to use the offering proceeds to repay outstanding debt, to make investments in portfolio companies, and for general corporate purposes.
The notes were sold to qualified institutional buyers under Rule 144A under the Securities Act of 1933, and to institutional accredited investors under Regulation D under the Securities Act.
BDCA, which primarily invests in senior secured loans, and to a lesser extent, mezzanine loans, unsecured loans and equity of private middle-market companies, commenced its initial public offering in January 2011 and raised $1.9 billion before closing the offering in April 2015. BDCA’s portfolio consisted of nearly $2.5 billion in debt investments, as of the fourth quarter of 2017, according to Summit Investment Research. BDCA is managed by its investment adviser, BDCA Adviser LLC, an affiliate of Benefit Street Partners.