December 4, 2022

by Chris Wack

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Shares of First Eagle Alternative Capital BDC Inc closed at $2.93 in early trading Tuesday after Crescent Capital BDC Inc. said it was buying First Eagle BDC.

The combined company, which will be externally managed by Crescent Cap Advisors LLC, a subsidiary of Crescent Capital Group, is expected to generate an investment of $1.6 billion on a pro forma basis.

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The boards of directors of both companies have approved the transaction, which is expected to close in the fourth quarter of 2022.

Assuming transactions based on the respective June 30 net asset values ​​for Crescent BDC and First Eagle BDC, First Eagle BDC shareholders would receive a 14% premium over First Eagle BDC’s net asset value of $5.30 per share.

Sun Life, which owns a majority interest in Crescent, has committed to providing secondary-market support and the acquisition of $20 million of the combined company’s common stock through a share purchase program over time following the conclusion of the transaction. Will buy

In connection with the closing of the proposed transaction, the 5.00% Senior Unsecured Note of First Eagle BDC is expected to remain outstanding as of May 25, 2026 and will be assumed by a subsidiary of Crescent BDC.

Write to Chris Wack at [email protected]

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