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Franklin BSP BDCs Complete Merger

Franklin BSP BDCs Complete Merger. Alternative investments, Benefit Street Partners, Franklin, merger, business development company

Franklin BSP Lending Corporation and Franklin BSP Capital Corporation, non-traded business development companies managed by affiliates of Benefit Street Partners LLC, announced the completion of their previously announced merger. Franklin BSP Capital Corporation is the surviving company in the merger and will continue to be advised by Franklin BSP Capital Adviser LLC, an affiliate of BSP. Based on Sept. 30, 2023, financial information, the combined company has more than $3.8 billion of total assets and approximately $2.1 billion of total net assets on a pro forma basis.

As previously announced and reported by The DI Wire in October 2023, FBCC’s stockholders approved an amended and restated investment advisory agreement with FBCA. This became effective Jan. 24, 2023, upon the closing of the merger.

In connection with the merger, former FBLC stockholders will receive 0.4647 shares of newly issued FBCC common stock for each share of FBLC common stock. As a result of the merger, legacy FBCC stockholders and former FBLC stockholders own approximately 19.3% and 80.7%, respectively, of the combined company.

“We are pleased to announce the completion of the merger between FBLC and FBCC. We believe this transaction will be immediately accretive to stockholders and unlock nearly $700 million of capital that we can deploy into a very attractive origination environment,” said Richard Byrne, president of BSP and CEO and chairman of FBCC. “We look forward to capitalizing on the combined company’s synergies and will continue to deliver strong growth and long-term value for our stockholders,” Byrne added.

Benefit Street Partners LLC, is a credit-focused alternative asset management firm with approximately $76 billion in assets under management as of Sept. 30, 2023. The combined BSP-Alcentra platform has over 400 employees in multiple locations across the globe. BSP manages assets across a broad range of complementary credit strategies, including private/opportunistic debt, structured credit, high yield, special situations, long-short liquid credit, and commercial real estate debt. Based in New York, the BSP platform was established in 2008.

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