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Non-Traded BDC May Want More Time to Raise Capital

AR Capital’s Business Development Corporation of America (BDCA), a business development company (BDC) that is focused on senior debt investments in middle-market companies, recently announced a possible extension of its continuous offering.

BDCA has filed a preliminary registration statement and amendments with the U.S. Securities and Exchange Commission, which relate to a possible extension of its continuous offering. BDCA’s board of directors approved the extension and it was recommended by the non-traded BDC’s adviser, BDCA Adviser. It was determined that the extension would be in the best interests of BDCA and holders of BDCA’s common shares. An extension could potentially increase the assets of BDCA available for investment, as well as make additional Shares available for BDCA’s dividend reinvestment plan.

If the extension becomes effective, BDCA will offer up to 101,100,000 Shares on a continuous basis and BDCA’s registration for its initial public offering of $1.5 billion in shares will terminate. The company will request from the SEC that registration statement become effective July 1, 2014. The transition to the extension would give selling group participants and their financial advisors the option of offering prospective investors the chance to invest in BDCA and gain exposure to its growing investment portfolio.

Launched in 2011, BDCA had issued 94.1 million shares of common stock for gross proceeds of $1.0 billion, including the shares purchased by its sponsor and shares issued under its distribution reinvestment plan.