Business development company (BDC) First Eagle Alternative Capital BDC (FCRD) will be selling a new baby bond issue and will be using part of the proceeds to call another baby bond that is outstanding.
The company will call their 6.75% baby bonds (FCRZ) which have been redeemable since 2018 and have a maturity date of 12/30/2022.
The company has one other 6.125% baby bond outstanding which can be seen here.
The new issue will be and will have a maturity in 2026.
The preliminary prospectus can be read here.
J was on top of this one.
well I guess I have to say good bye to my FCRZ bonds.
I will NOT be buying this FCRX bond, yield is way too low for me.
-james
I am hearing 5.00%. That seems a bit low to me.
af—I wouldn’t think that low, but things are crazy so who knows for sure.
The broker indicated 5.00%. In addition, the recent conference call suggested that they were looking to save about 150 basis points refinancing the two existing bonds, which would increase earnings by 5 cents or 6 cents per share. A 150 bips reduction takes you to the indicated 5.00%. It feels like a bad deal for the buyer, but I feel obligated to participate after other allocations that I have received. It would take 5.50% for me to actually want it.
5.00% — all you can eat
af–good call. The silly gets sillier. I’ll pass.
And the sillier becomes silliest. FCRX up 50 cents.