First Eagle Alternative Capital BDC to ‘Refi’ Baby Bonds

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.

7 thoughts on “First Eagle Alternative Capital BDC to ‘Refi’ Baby Bonds”

  1. 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

      1. 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.

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