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Cox Capital Begins Mini-Tender Offer for Franklin BSP Common Stock

Cox Capital Partners and its purchaser group (Cox) made a mini-tender offer for outstanding common stock shares of Franklin BSP Capital Corporation, a private business development company focused on lending to middle market companies.

Cox is offering $9.45 per share, while the BDC’s estimated net asset value per share was $14.88 as of Dec. 31, 2023. Its shares most recently traded on LODAS Markets, an online secondaries market, for $11.25.

Cox offered to purchase $21,550,000 of outstanding common stock shares, which constitutes 1.57% of the outstanding shares as of the date of the offer. The purchase price of the offer is equal to $9.45 per share, in cash, without interest. Cox said it reserves the right to increase the availability of capital for investment.

The tender offer will expire at the close of business on May 24, 2024, unless an extension is offered. If the number of shares tendered exceeds the capacity of the offer, Cox says shares will be accepted on a pro rata basis.

Franklin BSP Capital Corporation and Franklin BSP Lending Corporation, both non-traded BDCs managed by affiliates of Benefit Street Partners LLC, completed a merger in January 2024. FBLC was previously known as Business Development Corporation of America.

Cox Capital Partners is an investment management firm specializing in secondary liquidity solutions and alternative investment strategies. Based in Philadelphia, it provides direct liquidity to shareholders, fund sponsors, limited partners, and general partners of non-traded and private BDCs, non-traded and private real estate investment trusts, interval funds, and feeder funds.