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

Cox Capital Partners and its purchaser group (Cox Capital) has extended the expiration date for its 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.

The tender offer will now expire at the close of business on June 14, 2024, instead of the aforementioned date, May 24. This change was made as a result of increasing stockholder interest and the upcoming Memorial Day holiday.

Due to a delay in shipping the documents, John Cox, chief executive officer of Cox Capital told The DI Wire that it wants to make sure sellers have enough time to submit their paperwork and that any follow-on paperwork issues can be resolved.

Cox Capital also may choose to increase the total capacity of the offer within regulatory limits as participation increases. No other terms of the offer have changed.

“Based on the flow so far, it’s very likely we’ll need to increase the offer beyond the initially stated $21 million, which we have the capacity to do without restating the offer or extending further,” said Cox.

The firm noted that as long as the offer stays below $48 million, they do not to restate or extend it.

Cox Capital 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.

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.

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