NEW YORK, N.Y. – January 24, 2024 – Franklin BSP Lending Corporation (“FBLC”)
and Franklin BSP Capital Corporation (“FBCC”), business development companies
(“BDCs”) managed by affiliates of Benefit Street Partners L.L.C. (“BSP”),
today announced the completion of their previously announced merger. FBCC is
the surviving company in the merger and will continue to be advised by
Franklin BSP Capital Adviser L.L.C., an affiliate of BSP (“FBCA”). Based on
September 30, 2023 financial information, the combined company has over $3.8
billion of total assets and approximately $2.1 billion of total net assets on
a pro forma basis.
As previously announced, FBCC’s stockholders have approved an amended and
restated investment advisory agreement with FBCA, which became effective today
upon the closing of the merger.
Richard Byrne, President of BSP and CEO & Chairman of FBCC, said, “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. 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.”
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.
Keefe, Bruyette & Woods, A Stifel Company, served as financial advisor and
Sullivan & Worcester LLP as legal counsel to the special committee of FBCC.
J.P. Morgan served as financial advisor and Sullivan & Worcester LLP as legal
counsel to the special committee of FBLC.
Simpson Thacher & Bartlett LLP served as legal counsel to FBCC and FBLC with
respect to the merger. Dechert LLP served as legal counsel to FBCC and FBLC.
About Benefit Street Partners
Benefit Street Partners L.L.C. is a leading credit-focused alternative asset
management firm with approximately $76 billion in assets under management as
of September 30, 2023. The combined BSP-Alcentra platform has over 400
employees, including 170 investment professionals, 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. BSP offers investors deep industry and structuring expertise,
demonstrated credit discipline, access to sponsor and non-sponsor deal flow,
and a 15+ year track record in the private credit markets. Based in New York,
the BSP platform was established in 2008. BSP is a wholly owned subsidiary of
Franklin Templeton. For further information, please visit
www.benefitstreetpartners.com.
About Franklin BSP Capital Corporation
FBCC is a non-listed BDC with a $759 million investment portfolio at fair
value as of September 30, 2023, prior to the merger. Post-merger, based on
September 30, 2023 financial information, FBCC has over $3.8 billion of total
assets and approximately $2.1 billion of total net assets on a pro forma
basis. FBCC’s investment portfolio primarily consists of loans to
middle-market companies. FBCC has elected to be regulated as a BDC under the
Investment Company Act of 1940, as amended (the “1940 Act”). FBCC is managed
by FBCA. For further information, please visit
www.fbccbdc.com. This press release is not an
offer to sell any securities issued by FBCC and is not soliciting an offer to
buy such securities.
Forward-Looking Statements
Some of the statements in this press release constitute forward-looking
statements because they relate to future events, future performance or
financial condition or the anticipated merger of FBLC with and into FBCC (the
“Merger”). The forward-looking statements may include statements as to: future
operating results of FBCC and FBLC and distribution projections; business
prospects of FBCC and FBLC and the prospects of their portfolio companies; the
impact of the investments that FBCC and FBLC expect to make; and the impact
and effects of the Merger. In addition, words such as “anticipate,” “believe,”
“expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend”
indicate forward-looking statements, although not all forward-looking
statements include these words. The forward-looking statements contained in
this press release involve risks and uncertainties. FBCC and FBLC have based
the forward-looking statements included in this press release on information
available to them on the date of this press release, and they assume no
obligation to update any such forward-looking statements. Although FBCC and
FBLC undertake no obligation to revise or update any forward-looking
statements, whether as a result of new information, future events or
otherwise, you are advised to consult any additional disclosures that they may
make directly to you or through reports that FBCC and FBLC in the future may
file with the Securities and Exchange Commission.
Investor Relations Contact:
Amy Theaumont
A.Theaumont@benefitstreetpartners.com
(617) 433-2543
For media inquiries:
Travis Fishstein
Travis.Fishstein@franklintempleton.com
(917) 822-1857