tcrd-10q_20220331.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from                       to                     

Commission file number 814-00789

FIRST EAGLE ALTERNATIVE CAPITAL BDC, INC.

(Exact Name of Registrant as Specified in Its Charter)  

 

 

 

Delaware

 

27-0344947

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

500 Boylston St., Suite 1200, Boston, MA

 

02116

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: 800-450-4424

 

Securities registered pursuant to 12(b) of the Act:

 

Title of Each Class

Trading Symbols

 

Name of Each Exchange on Which Registered

Common Stock, par value $0.001 per share

FCRD

 

NASDAQ Global Select Market

5.00% Senior Notes due 2026

FCRX

 

The New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

Non-Accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).    Yes      No  

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding at May 9, 2022 was 29,922,028.

 

 

 


 

FIRST EAGLE ALTERNATIVE CAPITAL BDC, INC.

FORM 10-Q FOR THE QUARTER ENDED March 31, 2022

Table of Contents

 

 

 

INDEX

 

PAGE
NO.

PART I.

  

FINANCIAL INFORMATION

  

 

 

 

 

 

 

Item 1.

 

Financial Statements

 

 

 

 

 

 

 

 

 

Consolidated Statements of Assets and Liabilities as of March 31, 2022 (unaudited) and December 31, 2021

 

4

 

 

 

 

 

 

 

Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021 (unaudited)

 

5

 

 

 

 

 

 

 

Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2022 and 2021 (unaudited)

 

6

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021 (unaudited)

 

7

 

 

 

 

 

 

 

Consolidated Schedules of Investments as of March 31, 2022 (unaudited) and December 31, 2021

 

8

 

 

 

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

 

28

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

71

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

103

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

104

 

 

 

 

 

PART II.

 

OTHER INFORMATION

 

105

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

105

 

 

 

 

 

Item 1A.

 

Risk Factors

 

105

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

105

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

105

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

105

 

 

 

 

 

Item 5.

 

Other Information

 

105

 

 

 

 

 

Item 6.

 

Exhibits

 

106

 

 

 

 

 

SIGNATURES

 

107

 

 

2


 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This report, and other statements that we may make, may contain forward-looking statements with respect to future financial or business performance, strategies or expectations, anticipated share repurchases or lack thereof, our plans and expectations about future investments, amount and timing of distributions, if any, and the future liquidity of the company. Forward-looking statements are typically identified by words or phrases such as “trend,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “potential,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and we assume no duty to and do not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously identified elsewhere in this filing, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance:

 

the introduction, withdrawal, success and timing of business initiatives and strategies;

 

changes in political, economic or industry conditions, the interest rate environment, financial and capital markets, and other external factors, including the current novel coronavirus (“COVID-19”) pandemic, related COID-19 variants, inflation and recent supply chain disruptions as well as recent turmoil in Ukraine and Russia, which could result in changes in the value of our assets;

 

the relative and absolute investment performance and operations of our investment adviser;

 

the impact of increased competition;

 

the impact of future acquisitions and divestitures;

 

the resolution of legal proceedings;

 

our business prospects and the prospects of our portfolio companies;

 

the impact, extent and timing of technological changes and the adequacy of intellectual property protection;

 

the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to us or First Eagle Alternative Credit, LLC (the “Advisor”);

 

the ability of the Advisor to identify suitable investments for us and to monitor and administer our investments;

 

our contractual arrangements and relationships with third parties;

 

any future financings by us;

 

the ability of the Advisor to attract and retain highly talented professionals;

 

fluctuations in foreign currency exchange rates;

 

the impact of changes to tax legislation and, generally, our tax position;

 

the impact of pandemics or other serious public health epidemics, such as the COVID-19 pandemic on our operations, our portfolio companies' business, or the global economy;

 

our ability to exit a control investment in a timely manner; and

 

the ability to fund Logan JV’s unfunded commitments to the extent approved by each member of the Logan JV investment committee.

 

3


 

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Assets and Liabilities

(in thousands, except per share data)

 

 

 

 

March 31, 2022

(unaudited)

 

 

December 31, 2021

 

Assets:

 

 

 

 

 

 

 

Investments at fair value:

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments (cost of $312,012 and $297,497,

   respectively)

$

305,013

 

 

$

294,807

 

Controlled investments (cost of $150,989 and $149,664, respectively)

 

95,685

 

 

 

97,272

 

Non-controlled, affiliated investments (cost of $1 and $1, respectively)

 

 

 

 

 

Cash

 

6,099

 

 

 

16,276

 

Escrows and other receivables

 

1,392

 

 

 

1,566

 

Interest, dividends, and fees receivable

 

4,150

 

 

 

3,265

 

Deferred tax assets

 

2,359

 

 

 

2,261

 

Deferred financing costs

 

2,271

 

 

 

1,496

 

Prepaid expenses and other assets

 

1,274

 

 

 

769

 

Due from affiliate

 

59

 

 

 

49

 

Total assets

$

418,302

 

 

$

417,761

 

Liabilities:

 

 

 

 

 

 

 

Loans payable

$

121,500

 

 

$

114,100

 

Notes payable ($111,600 and $111,600 face amounts, respectively, reported net of

   deferred financing costs of $2,658 and $2,807, respectively)

 

108,942

 

 

 

108,793

 

Accrued expenses and other liabilities

 

1,010

 

 

 

1,033

 

Deferred tax liability

 

1,354

 

 

 

1,556

 

Base management fees payable

 

629

 

 

 

1,063

 

Due to affiliate

 

1,188

 

 

 

116

 

Accrued interest and fees

 

274

 

 

 

276

 

Accrued administrator expenses

 

155

 

 

 

118

 

Total liabilities

$

235,052

 

 

$

227,055

 

Commitments and contingencies (Note 8)

 

 

 

 

 

 

 

Net Assets:

 

 

 

 

 

 

 

Common stock, par value $.001 per share, 100,000 common shares authorized, 29,964

   and 30,076 shares issued and outstanding at March 31, 2022 and December 31, 2021,

   respectively

 

30

 

 

 

30

 

Paid-in capital in excess of par

 

417,721

 

 

 

418,227

 

Accumulated deficit

 

(234,501

)

 

 

(227,551

)

Total net assets

$

183,250

 

 

$

190,706

 

Total liabilities and net assets

$

418,302

 

 

$

417,761

 

Net asset value per share attributable to First Eagle Alternative Capital BDC, Inc.

$

6.12

 

 

$

6.34

 

 

 

 

 

 

 

 

 

 

See accompanying notes to these consolidated financial statements.

 

4


 

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

 

 

 

For the three months ended

March 31,

 

 

 

2022

 

 

2021

 

Investment Income:

 

 

 

 

 

 

 

 

From non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

Cash interest income

 

$

5,221

 

 

$

5,113

 

PIK interest income

 

 

54

 

 

 

123

 

Other income

 

 

222

 

 

 

155

 

From non-controlled, affiliated investments:

 

 

 

 

 

 

 

 

Other income

 

 

8

 

 

 

41

 

From controlled investments:

 

 

 

 

 

 

 

 

Cash interest income

 

 

199

 

 

 

188

 

Dividend income

 

 

1,680

 

 

 

1,568

 

Total investment income

 

 

7,384

 

 

 

7,188

 

Expenses:

 

 

 

 

 

 

 

 

Interest and fees on borrowings

 

 

2,376

 

 

 

2,366

 

Base management fees

 

 

1,029

 

 

 

879

 

Administrator expenses

 

 

295

 

 

 

221

 

Other general and administrative expenses

 

 

285

 

 

 

299

 

Amortization of deferred financing costs

 

 

286

 

 

 

408

 

Professional fees

 

 

395

 

 

 

416

 

Directors' fees

 

 

169

 

 

 

169

 

Total expenses

 

 

4,835

 

 

 

4,758

 

Management fee waiver

 

 

(400

)

 

 

(879

)

Total expenses, net of fee waivers

 

 

4,435

 

 

 

3,879

 

Income tax provision, excise and other taxes

 

 

25

 

 

 

26

 

Net investment income

 

 

2,924

 

 

 

3,283

 

Realized Gain (Loss) and Change in Unrealized (Depreciation) Appreciation on Investments:

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

44

 

 

 

(3,144

)

Net realized gain (loss) on investments

 

 

44

 

 

 

(3,144

)

Net change in unrealized (depreciation) appreciation on investments:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(4,308

)

 

 

5,594

 

Controlled investments

 

 

(2,911

)

 

 

4,087

 

Net change in unrealized (depreciation) appreciation on investments

 

 

(7,219

)

 

 

9,681

 

Net realized and unrealized (loss) gain from investments

 

 

(7,175

)

 

 

6,537

 

Benefit of (provision for) taxes on unrealized loss on investments

 

 

300

 

 

 

(331

)

Net (decrease) increase in net assets resulting from operations

 

$

(3,951

)

 

$

9,489

 

Net investment income per common share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.10

 

 

$

0.11

 

Net (decrease) increase in net assets resulting from operations per common share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.13

)

 

$

0.32

 

Weighted average shares of common stock outstanding:

 

 

 

 

 

 

 

 

Basic and diluted

 

 

30,012

 

 

 

30,109

 

 

See accompanying notes to these consolidated financial statements.

5


First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Changes in Net Assets

(in thousands)

(unaudited) 

 

 

 

 

For the three months ended March 31,

 

 

 

2022

 

 

2021

 

(Decrease) increase in net assets from operations:

 

 

 

 

 

 

 

 

Net investment income

 

$

2,924

 

 

$

3,283

 

Net realized gain (loss) on investments

 

 

44

 

 

 

(3,144

)

Net change in unrealized (depreciation) appreciation on investments

 

 

(7,219

)

 

 

9,681

 

Benefit of (provision for) taxes on unrealized loss on investments

 

 

300

 

 

 

(331

)

Net (decrease) increase in net assets resulting from operations

 

 

(3,951

)

 

 

9,489

 

Distributions to stockholders:

 

 

 

 

 

 

 

 

Distributions to stockholders from net investment income

 

 

(2,999

)

 

 

(3,011

)

Total distributions to stockholders

 

 

(2,999

)

 

 

(3,011

)

Capital share transactions:

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

(506

)

 

 

 

Net decrease in net assets from capital share transactions

 

 

(506

)

 

 

 

Total (decrease) increase in net assets

 

 

(7,456

)

 

 

6,478

 

Net assets at beginning of period

 

 

190,706

 

 

 

185,195

 

Net assets at end of period

 

$

183,250

 

 

$

191,673

 

Common shares outstanding at end of period

 

 

29,964

 

 

 

30,109

 

Capital share activity:

 

 

 

 

 

 

 

 

Shares repurchased

 

 

112

 

 

 

 

 

 

See accompanying notes to these consolidated financial statements.

6


First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

 

For the three months ended March 31,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net (decrease) increase in net assets resulting from operations

 

$

(3,951

)

 

$

9,489

 

Adjustments to reconcile net (decrease) increase in net assets resulting from operations to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Net change in unrealized depreciation (appreciation) on investments

 

 

7,219

 

 

 

(9,681

)

Net realized gain on investments

 

 

(51

)

 

 

1,888

 

Increase in investments due to interest paid-in-kind

 

 

(54

)

 

 

(132

)

Amortization of deferred financing costs

 

 

286

 

 

 

408

 

Accretion of discounts on investments and other fees

 

 

(229

)

 

 

(300

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Purchases of investments

 

 

(19,482

)

 

 

(25,206

)

Proceeds from sale and paydown of investments

 

 

3,978

 

 

 

8,154

 

Increase in interest, dividends and fees receivable

 

 

(885

)

 

 

(143

)

Decrease in escrows and other receivables

 

 

174

 

 

 

1,151

 

(Increase) decrease in due from affiliates

 

 

(10

)

 

 

(2

)

Increase in deferred tax asset

 

 

(98

)

 

 

(7

)

Increase in prepaid expenses and other assets

 

 

(505

)

 

 

(57

)

Decrease in accrued expenses and other liabilities

 

 

(23

)

 

 

14,883

 

Increase (decrease) in due to affiliate

 

 

1,072

 

 

 

(326

)

(Decrease) increase in accrued credit facility fees and interest

 

 

(2

)

 

 

(75

)

Decrease in deferred tax liability

 

 

(202

)

 

 

338

 

(Decrease) increase in base management fees payable, net

 

 

(434

)

 

 

 

Increase in accrued administrator expenses

 

 

37

 

 

 

 

Decrease in accrued incentive fees payable, net

 

 

 

 

 

(156

)

Net cash provided by operating activities

 

 

(13,160

)

 

 

226

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

(506

)

 

 

 

Borrowings under credit facility

 

 

19,400

 

 

 

18,000

 

Repayments under credit facility

 

 

(12,000

)

 

 

(9,500

)

Distributions paid to stockholders

 

 

(2,999

)

 

 

(3,011

)

Financing and offering costs paid

 

 

(912

)

 

 

(133

)

Net cash provided by financing activities

 

 

2,983

 

 

 

5,356

 

Net (decrease) increase in cash

 

 

(10,177

)

 

 

5,582

 

Cash, beginning of period

 

 

16,276

 

 

 

7,615

 

Cash, end of period

 

$

6,099

 

 

$

13,197

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

 

 

 

Cash interest paid

 

$

2,363

 

 

$

2,280

 

PIK income earned

 

$

54

 

 

$

123

 

 

 

Non-cash Operating Activities:

See Note 5 in the notes to consolidated financial statements for non-cash restructurings.

See accompanying notes to these consolidated financial statements.

 

 

7


First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

March 31, 2022

(dollar amounts in thousands)

 

 

 

 

 

 

 

Initial

 

Maturity/

 

Principal(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition

 

Dissolution

 

No. of Shares /

 

 

 

 

 

 

 

 

 

Type of Investment/Portfolio company (1)(2)(3)

 

Industry

 

Interest Rate(4)

 

Date

 

Date

 

No. of Units

 

 

Amortized Cost

 

 

Fair Value (6)

 

Non-controlled/non-affiliated investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First lien senior secured debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—161.83% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—7.71% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hudson's Bay Company ULC (7)

 

Retail

 

8.3% (LIBOR + 7.3%)

 

9/30/2021

 

9/29/2026

 

$

6,928

 

 

$

6,802

 

 

$

6,791

 

PDFTron Systems Inc. (7)

 

Services: Business

 

6.5% (LIBOR + 5.5%)

 

7/15/2021

 

7/13/2027

 

 

1,633

 

 

 

1,603

 

 

 

1,607

 

PDFTron Systems Inc. (7)(8)

 

Services: Business

 

6.5% (LIBOR + 5.5%)

 

7/15/2021

 

7/15/2026

 

 

298

 

 

 

293

 

 

 

294

 

PDFTron Systems Inc. (7)(22)

 

Services: Business

 

6.5% (LIBOR + 5.5%)

 

7/15/2021

 

7/13/2027

 

 

522

 

 

 

513

 

 

 

514

 

PDFTron Systems Inc. (7)

 

Services: Business

 

6.5% (SOFR + 5.5%)

 

3/24/2022

 

7/15/2027

 

 

5,000

 

 

 

4,900

 

 

 

4,925

 

 

 

 

 

 

 

 

 

Subtotal Canada

 

$

14,381

 

 

$

14,111

 

 

$

14,131

 

Midwest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—15.99% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Web Technologies

 

Containers, Packaging, & Glass

 

6.8% (LIBOR + 5.8%)

 

12/17/2020

 

12/17/2026

 

$

2,027

 

 

$

1,994

 

 

$

2,026

 

Advanced Web Technologies (8)

 

Containers, Packaging, & Glass

 

6.8% (LIBOR + 5.8%)

 

12/17/2020

 

12/17/2026

 

 

46

 

 

 

39

 

 

 

45

 

Advanced Web Technologies (22)

 

Containers, Packaging, & Glass

 

6.8% (LIBOR + 5.8%)

 

12/17/2020

 

12/17/2026

 

 

797

 

 

 

785

 

 

 

796

 

Doxa Insurance Holdings, LLC

 

Insurance

 

7.3% (LIBOR + 6.3%)

 

12/4/2020

 

12/4/2026

 

 

1,580

 

 

 

1,549

 

 

 

1,580

 

Doxa Insurance Holdings, LLC (8)(9)

 

Insurance

 

7.3% (LIBOR + 6.3%)

 

12/4/2020

 

12/4/2026

 

 

 

 

 

(7

)

 

 

 

Doxa Insurance Holdings, LLC(22)

 

Insurance

 

7.3% (LIBOR + 6.3%)

 

12/4/2020

 

12/4/2026

 

 

1,911

 

 

 

1,874

 

 

 

1,911

 

Doxa Insurance Holdings, LLC(22)

 

Insurance

 

7.3% (LIBOR + 6.3%)

 

8/16/2021

 

12/4/2026

 

 

719

 

 

 

680

 

 

 

719

 

1-800 Hansons, LLC (11)

 

Services: Consumer

 

10.5% (LIBOR + 9.5%) (9.5% Cash  + 1.0% PIK)

 

10/19/2017

 

10/19/2022

 

 

3,310

 

 

 

3,303

 

 

 

3,243

 

1-800 Hansons, LLC (8)

 

Services: Consumer

 

9.5% (LIBOR + 8.5%)

 

10/19/2017

 

10/19/2022

 

 

209

 

 

 

209

 

 

 

205

 

IRC Opco LLC

 

Healthcare & Pharmaceuticals

 

6.5% (LIBOR + 5.5%)

 

1/4/2019

 

1/4/2023

 

 

5,271

 

 

 

5,261

 

 

 

5,219

 

IRC Opco LLC (8)(9)

 

Healthcare & Pharmaceuticals

 

6.5% (LIBOR + 5.5%)

 

1/4/2019

 

1/5/2026

 

 

 

 

 

(2

)

 

 

 

IRC Opco LLC

 

Healthcare & Pharmaceuticals

 

6.5% (LIBOR + 5.5%)

 

7/1/2021

 

1/4/2023

 

 

993

 

 

 

983

 

 

 

983

 

IRC Opco LLC

 

Healthcare & Pharmaceuticals

 

6.3% (LIBOR + 5.3%)

 

10/21/2021

 

1/4/2026

 

 

249

 

 

 

245

 

 

 

246

 

Matilda Jane Holdings, Inc.

 

Consumer Goods: Non-Durable

 

9.5% (LIBOR + 8.5%)

 

4/28/2017

 

5/1/2022

 

 

11,049

 

 

 

11,044

 

 

 

8,287

 

Matilda Jane Holdings, Inc. (8)

 

Consumer Goods: Non-Durable

 

9.5% (LIBOR + 8.5%)

 

10/30/2020

 

5/1/2022

 

 

652

 

 

 

652

 

 

 

489

 

Tricor Borrower, LLC

 

Banking

 

6.3% (LIBOR + 5.3%)

 

10/22/2021

 

10/22/2026

 

 

3,215

 

 

 

3,170

 

 

 

3,167

 

Tricor Borrower, LLC(8)(9)

 

Banking

 

6.3% (LIBOR + 5.3%)

 

10/22/2021

 

10/22/2026

 

 

 

 

 

(4

)

 

 

 

Tricor Borrower, LLC(22)

 

Banking

 

6.3% (LIBOR + 5.3%)

 

10/22/2021

 

10/22/2026

 

 

401

 

 

 

386

 

 

 

395

 

 

 

 

 

 

 

 

 

Subtotal Midwest

 

$

32,429

 

 

$

32,161

 

 

$

29,311

 

Northeast

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—44.99% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3SI Security Systems

 

Services: Consumer

 

6.8% (LIBOR + 5.8%)

 

12/17/2019

 

6/16/2023

 

$

3,905

 

 

$

3,891

 

 

$

3,825

 

Alcanza Clinical Research

 

Healthcare & Pharmaceuticals

 

6.3% (LIBOR + 5.3%)

 

12/21/2021

 

12/15/2027

 

 

500

 

 

 

493

 

 

 

493

 

Alcanza Clinical Research(8)(9)

 

Healthcare & Pharmaceuticals

 

6.3% (LIBOR + 5.3%)

 

12/21/2021

 

12/15/2027

 

 

 

 

 

(2

)

 

 

 

Alcanza Clinical Research(9)(22)

 

Healthcare & Pharmaceuticals

 

6.3% (LIBOR + 5.3%)

 

12/21/2021

 

12/15/2027

 

 

 

 

 

(1

)

 

 

 

See accompanying notes to these consolidated financial statements.

 

8


First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

March 31, 2022

(dollar amounts in thousands)

 

 

 

 

 

 

Initial

 

Maturity/

 

Principal(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition

 

Dissolution

 

No. of Shares /

 

 

 

 

 

 

 

 

 

Type of Investment/Portfolio company (1)(2)(3)

 

Industry

 

Interest Rate(4)

 

Date

 

Date

 

No. of Units

 

 

Amortized Cost

 

 

Fair Value (6)

 

Alcanza Clinical Research

 

Healthcare & Pharmaceuticals

 

6.3% (LIBOR + 5.3%)

 

3/23/2022

 

12/15/2027

 

 

6,625

 

 

 

6,510

 

 

 

6,526

 

Aurotech, LLC (19)

 

High Tech Industries

 

8.0% (LIBOR + 7.0%)

 

10/30/2020

 

10/30/2025

 

 

2,939

 

 

 

2,880

 

 

 

1,077

 

Aurotech, LLC (8)(9)(19)

 

High Tech Industries

 

8.0% (LIBOR + 7.0%)

 

10/30/2020

 

10/30/2025

 

 

 

 

 

(9

)

 

 

 

Automated Control Concepts, Inc.

 

High Tech Industries

 

6.5% (LIBOR + 5.5%)

 

10/22/2021

 

10/22/2026

 

 

2,653

 

 

 

2,616

 

 

 

2,614

 

Automated Control Concepts, Inc.(8)

 

High Tech Industries

 

6.5% (LIBOR + 5.5%)

 

10/22/2021

 

10/22/2026

 

 

167

 

 

 

155

 

 

 

164

 

Cedar Services Group, LLC

 

Sovereign & Public Finance

 

7.0% (LIBOR + 6.0%)

 

6/9/2021

 

6/11/2027

 

 

2,896

 

 

 

2,858

 

 

 

2,875

 

Cedar Services Group, LLC (8)(9)

 

Sovereign & Public Finance

 

7.0% (LIBOR + 6.0%)

 

6/9/2021

 

6/11/2027

 

 

 

 

 

(11

)

 

 

 

Cedar Services Group, LLC (22)

 

Sovereign & Public Finance

 

7.0% (LIBOR + 6.0%)

 

6/9/2021

 

6/11/2027

 

 

1,274

 

 

 

1,255

 

 

 

1,264

 

Cedar Services Group, LLC

 

Sovereign & Public Finance

 

7.0% (LIBOR + 6.0%)

 

3/1/2022

 

6/11/2027

 

 

1,000

 

 

 

980

 

 

 

993

 

Cedar Services Group, LLC (9)(22)

 

Sovereign & Public Finance

 

7.0% (LIBOR + 6.0%)

 

3/1/2022

 

6/11/2027

 

 

 

 

 

(14

)

 

 

 

Certify, Inc.

 

Services: Business

 

6.5% (LIBOR + 5.5%)

 

2/28/2019

 

2/28/2024

 

 

1,544

 

 

 

1,535

 

 

 

1,544

 

Certify, Inc. (23)

 

Services: Business

 

6.5% (LIBOR + 5.5%)

 

2/28/2019

 

2/28/2024

 

 

211

 

 

 

209

 

 

 

211

 

Certify, Inc. (8)

 

Services: Business

 

6.5% (LIBOR + 5.5%)

 

2/28/2019

 

2/28/2024

 

 

18

 

 

 

17