Crescent Capital BDC Inc., a business development company offering capital services to middle-market companies, has acquired First Eagle Alternative Capital BDC Inc., a closed-end management investment company.
With the deal, Crescent BDC expects that the combined company will create strategic and financial benefits for stockholders due to its size and scale, as well as position the combined company to capitalize on market conditions. The combined company will be externally managed by Crescent Cap Advisors LLC and is expected to have approximately $1.6 billion of investments on a pro forma basis. Following the transaction, Crescent BDC stockholders are expected to own approximately 83 percent, and First Eagle BDC stockholders are expected to own 17 percent, of the combined company.
“We expect this combination will be accretive to core earnings and provide many financial and strategic benefits to our stockholders as we further enhance our scale and position,” comments Jason Breaux, president and chief executive officer of Crescent BDC. “Similar to the strategy we successfully utilized in our acquisition of Alcentra Capital in 2020, we plan to leverage our robust origination platform to selectively rotate legacy First Eagle BDC’s portfolio into Crescent directly originated investments over time. We are confident in our ability to maximize long-term value for both Crescent BDC and First Eagle BDC stockholders.”
Wells Fargo Securities served as financial advisor and Kirkland & Ellis LLP served as legal counsel to Crescent BDC. Keefe, Bruyette and Woods served as financial advisor and Simpson Thacher & Bartlett LLP served as legal counsel to First Eagle BDC.