BOSTON, Nov. 04, 2020 (GLOBE NEWSWIRE) — First Eagle Different Capital BDC, Inc. (previously often known as THL Credit score, Inc.) (NASDAQ: FCRD) (“First Eagle Different Capital BDC” or the “Firm”), a direct lender to center market firms, at the moment introduced monetary outcomes for its third fiscal quarter ended September 30, 2020. Moreover, the Firm introduced that its Board of Administrators (the “Board”) has declared a fourth fiscal quarter 2020 dividend of $0.10 per share payable on December 31, 2020, to stockholders of report as of December 15, 2020.
|($ in hundreds of thousands, besides per share quantities)|
|Portfolio outcomes||As of September 30, 2020|
|Funding portfolio, at honest worth||$||343.4|
|Internet asset worth per share||$||6.25|
|Weighted common yield on investments||7.0||%|
|Quarter ended September 30, 2020||Quarter ended September 30, 2019|
|Complete portfolio investments made, at par||$||11.9||$||19.4|
|Complete portfolio investments made, at value||$||11.7||$||19.2|
|Variety of new portfolio investments||4||2|
|Variety of portfolio investments at finish of interval||47||47|
|Complete funding revenue||$||7.3||$||12.8|
|Internet funding revenue||$||3.2||$||6.9|
|Internet improve (lower) in internet belongings from operations||$||15.2||$||0.3|
|Internet funding revenue per share||$||0.10||$||0.22|
|Dividends declared per share||$||0.10||$||0.21|
PORTFOLIO AND INVESTMENT ACTIVITY
Within the third quarter, the Firm closed on 4 new investments totaling $11.1 million, and funded $0.8 million in follow-on investments, together with delayed draw and revolver fundings.
Notable investments for the quarter at par included:
- $3.1 million first lien senior secured time period mortgage in Quartermaster Newco, LLC;
- $3.0 million first lien senior secured time period mortgage in Lash Opco LLC;
- $3.0 million first lien senior secured time period mortgage in Neiman Marcus Group LTD LLC; and,
- $2.0 million first lien senior secured time period mortgage in Groundworks Operations, LLC.
Notable realizations for the quarter included:
- Reimbursement of a primary lien senior secured time period mortgage in It’s Simply Lunch Worldwide LLC at par, which resulted in proceeds of $5.5 million.
As of September 30, 2020, these transactions, coupled with adjustments in internet unrealized appreciation on the portfolio through the quarter, convey the whole honest worth of First Eagle Different Capital BDC’s funding portfolio to $343.4 million throughout 47 portfolio investments. The Firm’s funding portfolio as of September 30, 2020 by funding sort at honest worth is introduced under (in hundreds of thousands):
|Description||Truthful Worth||Proportion of
|First lien senior secured debt||$||222.5||64.8||%|
|Funding in Logan JV||62.9||18.3||%|
|Second lien debt||33.8||9.9||%|
|Investments in funds||2.8||0.8||%|
As of September 30, 2020, the weighted common yield of the debt and income-producing securities, together with the Firm’s funding in First Eagle Logan JV, LLC (the “Logan JV”), within the funding portfolio at their present value foundation was 7.0 p.c. As of September 30, 2020, First Eagle Different Capital BDC had loans on non-accrual standing with an combination amortized value of $20.4 million and honest worth of $9.7 million, or 5.1 p.c and a couple of.8 p.c of the portfolio’s amortized value and honest worth, respectively. As of September 30, 2020, 100% of the Firm’s income-producing debt investments bore curiosity primarily based on floating charges, which can be topic to rate of interest flooring, similar to London Interbank supply charge, or LIBOR.
This compares to the portfolio as of December 31, 2019, which had a good worth of $384.1 million throughout 52 portfolio investments. First Eagle Different Capital BDC’s funding portfolio by funding sort at honest worth as of December 31, 2019 in introduced under (in $ hundreds of thousands):
|Description||Truthful Worth||Proportion of
|First lien senior secured debt||$||263.6||68.7||%|
|Funding in Logan JV||83.4||21.7||%|
|Second lien debt||12.0||3.1||%|
|Investments in funds||3.6||0.9||%|
As of December 31, 2019, the weighted common yield of the debt and different income-producing securities within the funding portfolio, together with the Logan JV, at their value foundation was 8.7 p.c (excluding the Firm’s investments in broadly syndicated first lien senior secured time period loans, the weighted common yield on investments was 8.9 p.c). As of December 31, 2019, the Firm had loans on non-accrual standing with an combination amortized value of $36.0 million and honest worth of $15.1 million, or 8.1 p.c and three.9 p.c of the portfolio’s amortized value and honest worth, respectively. As of December 31, 2019, 100% of the Firm’s income-producing debt investments bore curiosity primarily based on floating charges, which can be topic to rate of interest flooring, similar to LIBOR.
RESULTS OF OPERATIONS
A breakdown of funding revenue for the three months ended September 30, 2020 and 2019 is introduced under (in $ hundreds of thousands):
|Three months ended September 30,|
|Curiosity revenue on debt securities|
|Internet accretion of reductions and different charges||0.2||0.3|
|Complete curiosity on debt securities||4.6||8.7|
|Curiosity revenue on different income-producing securities||—||0.1|
|Charges associated to non-controlled, affiliated investments||—||0.1|
|Complete funding revenue||$||7.3||$||12.8|
The lower in funding revenue between the three month durations was primarily as a result of contraction within the Firm’s total funding portfolio since September 30, 2019, the decline in LIBOR, and the extra loans placed on non-accrual standing subsequent to September 30, 2019. Moreover, dividend revenue decreased as a result of sale of Copperweld Bimetallics LLC in 2019.
A breakdown of bills for the three months ended September 30, 2020 and 2019 is introduced under (in $ hundreds of thousands):
|For the three months ended September 30,|
|Curiosity and costs on borrowings||$||2.8||$||3.4|
|Base administration charges||0.9||1.2|
|Administration charge waiver||(0.9||)||—|
|Complete bills, internet of charge waivers||4.2||5.8|
|Earnings tax provision, excise and different taxes||—||0.1|
|Complete bills after taxes||$||4.2||$||5.9|
The lower in working bills between the three month durations was due primarily to decrease curiosity and costs on borrowings as a result of a discount in borrowings excellent, a lower in LIBOR and decrease charges ensuing from a discount in credit score facility dimension. Moreover, the Firm waived base administration charges through the three months ended September 30, 2020.
Internet funding revenue
Internet funding revenue totaled $3.2 million and $6.9 million for the three months ended September 30, 2020 and 2019, respectively, or $0.10 and $0.22 per share, respectively, primarily based upon 31,237,433 and 30,991,585 weighted common frequent shares excellent, respectively.
The lower in internet funding revenue for the respective durations is primarily attributable to decrease dividend revenue and a lower in curiosity on debt and different income-producing investments as a result of portfolio contraction and extra loans placed on non-accrual standing, offset by decrease internet base administration charges (internet of waivers) and curiosity and costs on borrowings.
Internet realized positive aspects and losses on investments, internet of revenue tax provision
For the three months ended September 30, 2020, First Eagle Different Capital BDC acknowledged a internet realized loss on portfolio investments of $17.5 million, primarily associated to the $17.5 million loss from the restructuring of OEM Group, LLC. For the three months ended September 30, 2019, the Firm acknowledged a internet realized loss on portfolio investments of $7.7 million, primarily associated to a realized lack of $24.6 million in reference to the liquidation of Charming Charlie LLC, offset by a realized acquire of $16.7 million from a realization of a managed funding in Copperweld Bimetallics LLC.
Internet change in unrealized appreciation on investments
For the three months ended September 30, 2020 and 2019, First Eagle Different Capital BDC’s funding portfolio had a internet change in unrealized appreciation of $29.4 million and $1.0 million, respectively.
The online change in unrealized appreciation on investments through the three months ended September 30, 2020 was primarily as a result of a rise within the honest worth of the Logan JV, coupled with the reversal of prior interval unrealized depreciation into realized losses in reference to the restructuring of OEM Group, LLC.
Change in internet belongings ensuing from operations
Change in internet belongings ensuing from operations totaled $15.2 million and $0.3 million, or $0.49 and $0.01 per share primarily based upon 31,237,433 and 30,991,585 weighted common frequent shares excellent, for the three months ended September 30, 2020 and 2019, respectively.
The rise in internet belongings ensuing from operations for the respective durations is primarily as a result of internet lower of the unrealized losses within the portfolio through the three months ended September 30, 2020, offset by decrease dividend revenue, decrease curiosity revenue on account of portfolio contraction and extra loans positioned on non-accrual standing, and the rise of the realized losses within the portfolio.
FINANCIAL CONDITION, INCLUDING LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 2020, First Eagle Different Capital BDC had money of $10.5 million.
As of September 30, 2020, the Firm had $176.3 million in excellent borrowings, which was comprised of $64.7 million excellent on the revolving credit score facility and $111.6 million of notes payable excellent. As of September 30, 2020, borrowings excellent had a weighted common rate of interest of 5.3 p.c. For the 9 months ended September 30, 2020, the Firm borrowed $15.5 million and repaid $17.0 million below the revolving credit score facility.
For the 9 months ended September 30, 2020, First Eagle Different Capital BDC’s working actions offered money of $11.2 million primarily in reference to funding exercise. Financing actions included $1.5 million internet borrowings on its credit score facility, $12.8 million for distributions to stockholders, $2.2 million to repurchase frequent inventory below its inventory repurchase program, and $19.8 million to repurchase frequent inventory below its tender supply that closed in July 2020. Moreover, the Firm’s financing actions offered $30.0 million from the issuance of frequent inventory.
For the 9 months ended September 30, 2019, the Firm’s working actions used money of $78.3 million primarily in reference to funding exercise. Financing actions included $39.0 million used for internet repayments on its credit score facility, $19.9 million for distributions to stockholders, and $11.6 million to repurchase frequent inventory.
From October 1, 2020 by way of November 4, 2020, First Eagle Different Capital BDC made new investments totaling $12.2 million and follow-on investments, together with revolver and delayed draw fundings, totaling $0.9 million with a mixed weighted common yield of 8.3%.
On October 16, 2020, we entered into the Third Amended and Restated Senior Secured Revolving Credit score Settlement to our revolving credit score facility which, amongst different issues, (i) completely lowered the asset protection take a look at from a minimal of 165 p.c to a minimal of 150 p.c; (ii) completely lowered the shareholder’s fairness and obligor’s internet value take a look at from a minimal of $140,000 every to a minimal of $130,000 every; (iii) completely lowered the scale of the lender’s commitments below the revolving credit score facility from $120,000 to $100,000; (iv) completely elevated the rate of interest by 25 foundation factors, and (v) prolonged the maturity date from December 15, 2021 to October 16, 2023, and the termination date from December 15, 2022 to October 16, 2024.
On October 30, 2020, our board of administrators declared a dividend of $0.10 per share payable on December 31, 2020 to stockholders of report on the shut of enterprise on December 15, 2020.
First Eagle Different Capital BDC will host a convention name to debate these outcomes and its enterprise outlook on November 5, 2020, at 9:30 a.m. Jap Time.
For these wishing to take part by phone, please dial (877) 375-9141 (home) or (253) 237-1151 (worldwide). Use passcode 1398872. The Firm may also broadcast the convention name stay on the Investor Relations part of its web site at www.feacbdc.com. Beginning roughly two hours after the conclusion of the decision, a replay will likely be out there by way of November 15, 2020, by dialing (855) 859-2056 (home) or (404) 537-3406 (worldwide) and getting into passcode 1398872. The replay may also be out there on the Firm’s web site.
First Eagle Different Capital BDC’s filings with the Securities and Change Fee, press releases, earnings releases, investor presentation and different monetary data can be found on its web site at www.feacbdc.com.
FIRST EAGLE ALTERNATIVE CAPITAL BDC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in hundreds, besides per share information)
|September 30, 2020 (unaudited)||December 31,
|Investments at honest worth:|
|Non-controlled, non-affiliated investments (value of $239,803 and $263,444, respectively)||$||226,667||$||242,189|
|Managed investments (value of $160,446 and $178,769, respectively)||116,695||141,932|
|Non-controlled, affiliated investments (value of $2 and $2, respectively)||2||4|
|Escrows and different receivables||4,745||12,353|
|Curiosity, dividends, and costs receivable||3,860||4,623|
|Deferred tax belongings||2,063||2,267|
|Deferred financing prices||1,009||1,619|
|Pay as you go bills and different belongings||808||829|
|Due from affiliate||223||192|
|Notes payable ($111,607 and $111,607 face quantities, respectively, reported internet of deferred financing prices of $2,136 and $2,742, respectively)||109,471||108,866|
|Accrued bills and different liabilities||2,538||3,434|
|Deferred tax legal responsibility||1,532||1,927|
|Base administration charges payable||—||1,103|
|Accrued incentive charges||156||568|
|Accrued curiosity and costs||158||384|
|Commitments and contingencies|
|Frequent inventory, par worth $.001 per share, 100,000 frequent shares licensed, 30,109 and 30,022 shares issued and excellent at September 30, 2020 and December 31, 2019, respectively||30||30|
|Paid-in capital in extra of par||423,739||415,596|
|Complete internet belongings||$||188,092||$||229,455|
|Complete liabilities and internet belongings||$||366,608||$||411,898|
|Internet asset worth per share||$||6.25||$||7.64|
FIRST EAGLE ALTERNATIVE CAPITAL BDC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in hundreds, besides per share information)
|For the three months ended
|For the 9 months ended
|From non-controlled, non-affiliated investments:|
|Money curiosity revenue||$||4,217||$||6,935||$||13,298||$||23,162|
|PIK curiosity revenue||338||329||806||676|
|From non-controlled, affiliated investments:|
|Money curiosity revenue||—||—||—||57|
|From managed investments:|
|Money curiosity revenue||2||1,120||(247||)||3,550|
|PIK curiosity revenue||—||381||—||730|
|Complete funding revenue||7,329||12,793||22,256||42,346|
|Curiosity and costs on borrowings||2,439||3,047||7,687||9,688|
|Base administration charges||895||1,215||2,795||4,940|
|Different basic and administrative bills||598||375||1,323||1,107|
|Amortization of deferred financing prices||319||340||1,516||1,370|
|Administration charge waiver||(895||)||—||(895||)||(525||)|
|Complete bills, internet of administration charge waivers||4,162||5,800||14,611||19,558|
|Excise and different taxes||(15||)||121||71||359|
|Internet funding revenue||3,182||6,872||7,574||22,429|
|Realized (Loss) Acquire and Change in Unrealized Appreciation (Depreciation) on Investments:|
|Internet realized (loss) acquire on investments:|
|Non-controlled, non-affiliated investments||(84||)||280||(25,589||)||(26,203||)|
|Non-controlled, affiliated investments||(19||)||(24,652||)||(2,493||)||(24,652||)|
|Overseas forex transactions||—||(191||)||—||(189||)|
|Internet realized loss on investments||(17,490||)||(7,862||)||(45,732||)||(33,901||)|
|Internet change in unrealized appreciation (depreciation) on investments:|
|Non-controlled, non-affiliated investments||6,375||(4,972||)||8,119||2,935|
|Non-controlled, affiliated investments||—||24,652||(2||)||12,752|
|Translation of belongings and liabilities in foreign currency echange||—||251||—||(391||)|
|Internet change in unrealized appreciation on investments||29,392||1,237||1,203||1,973|
|Internet realized and unrealized acquire (loss) from investments||11,902||(6,625||)||(44,529||)||(31,928||)|
|Profit for taxes on unrealized loss on investments||165||64||192||335|
|Internet improve (lower) in internet belongings ensuing from operations||$||15,249||$||311||$||(36,763||)||$||(9,164||)|
|Internet funding revenue per frequent share:|
|Fundamental and diluted||$||0.10||$||0.22||$||0.24||$||0.71|
|Internet improve (lower) in internet belongings ensuing from operations per frequent share:|
|Fundamental and diluted||$||0.49||$||0.01||$||(1.16||)||$||(0.29||)|
|Weighted common shares of frequent inventory excellent:|
|Fundamental and diluted||31,237||30,992||31,785||31,679|
About First Eagle Different Capital BDC, Inc.
First Eagle Different Capital BDC, Inc. (NASDAQ: FCRD) is a closed-end administration funding firm that has elected to be handled as a enterprise growth firm below the Funding Firm Act of 1940. The Firm’s funding goal is to generate each present revenue and capital appreciation, primarily by way of investments in privately negotiated debt and fairness securities of center market firms. The Firm is a direct lender to center market firms and invests primarily in immediately originated first lien senior secured loans, together with unitranche investments. In sure cases, the Firm additionally makes second lien secured loans and subordinated or mezzanine, debt investments, which can embody an related fairness element similar to warrants, most well-liked inventory or different comparable securities and direct fairness co-investments. The Firm targets investments primarily in center market firms with annual EBITDA usually between $5 million and $25 million. The Firm is headquartered in Boston, with extra origination groups in Chicago, Dallas, Los Angeles and New York. The Firm’s funding actions are managed by First Eagle Different Credit score, LLC (the “Advisor”), an funding adviser registered below the Funding Advisers Act of 1940. For extra data on First Eagle Different Capital BDC, Inc., please go to www.feacbdc.com. For extra data on First Eagle Different Credit score, LLC, please go to www.feac.com.
Statements made on this press launch might represent forward-looking statements throughout the which means of Part 27A of the Securities Act of 1933 and Part 21E of the Securities Change Act of 1934. Such statements replicate numerous assumptions by the Firm regarding anticipated outcomes and should not ensures of future efficiency. These statements might be recognized by means of phrases similar to “outlook,” “believes,” “expects,” “potential,” “continues,” “might,” “will,” ”ought to,” “seeks,” “roughly,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the damaging model of those phrases or different comparable phrases. These statements embody however should not restricted to, projected monetary efficiency, anticipated growth of the enterprise, anticipated share repurchases or lack thereof, plans and expectations about future investments, anticipated dividends and the longer term liquidity of the Firm. The accuracy of such statements entails identified and unknown dangers, uncertainties and different components that, in some methods, are past administration’s management, together with the chance components described now and again in filings by the Firm with the Securities and Change Fee. Such components embody: the affect of COVID-19; the introduction, withdrawal, success and timing of enterprise initiatives and techniques; adjustments in political, financial or trade circumstances, the rate of interest atmosphere or monetary and capital markets, which may lead to adjustments within the worth of our belongings; the relative and absolute funding efficiency and operations of our funding adviser; the affect of elevated competitors; the affect of future acquisitions and divestitures; the unfavorable decision of authorized proceedings; our enterprise prospects and the prospects of our portfolio firms; the affect, extent and timing of technological adjustments and the adequacy of mental property safety; the affect of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of presidency businesses regarding us or the Advisor; the flexibility of the Advisor to determine appropriate investments for us and to watch and administer our investments; our contractual preparations and relationships with third events; any future financings by us; the flexibility of the Advisor to draw and retain extremely gifted professionals; fluctuations in international forex alternate charges; the affect of adjustments to tax laws and, usually, our tax place; our potential to exit a management funding in a well timed method; and the flexibility to fund Logan JV’s unfunded commitments to the extent accepted by every member of the Logan JV funding committee.
The Firm undertakes no responsibility to replace any forward-looking statements made herein. All forward-looking statements communicate solely as of the date of this press launch.
First Eagle Different Capital BDC, Inc.
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