| Item 1.01 | Entry into a Material Definitive Agreement. |
On May 25, 2021, First Eagle Alternative Capital BDC, Inc. (the “Company”) and U.S. Bank National Association (“Trustee”) entered into a Fourth Supplemental Indenture (the “Fourth Supplemental Indenture”) to the Indenture (the “Indenture”), dated as of November 18, 2014, between the Company and the Trustee. The Fourth Supplemental Indenture relates to the Company’s issuance, offer and sale of $60,000,000 aggregate principal amount of its 5.00% Notes due 2026 (the “Notes”). The Company also granted the underwriters a 30-day option to purchase up to an additional $9.0 million in aggregate principal amount of the Notes to cover overallotments, if any.
The Notes will mature on May 25, 2026. The Notes bear interest at a rate of 5.00% per year payable on March 30, June 30, September 30 and December 30 of each year, commencing September 30, 2021. The Notes are direct unsecured obligations of the Company.
The Notes may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after May 25, 2023, at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption.
The Company intends to use the net proceeds from this offering, together with other available funds, to repay certain of its indebtedness, including the redemption of its outstanding 6.75% Notes due 2022, in its entirety, and the repayment of a portion of the outstanding indebtedness under its revolving credit facility.
The Indenture, as supplemented by the Fourth Supplemental Indenture, contains certain covenants including covenants requiring the Company to comply with Section 18(a)(1)(A) as modified by Section 61(a) of the Investment Company Act of 1940, as amended (“the 1940 Act”), or any successor provisions, whether or not the Company continues to be subject to such provisions of the 1940 Act, but giving effect, in either case, to any exemptive relief granted to us by the U.S. Securities and Exchange Commission, and to provide financial information to the holders of the Notes and the Trustee if the Company should no longer be subject to the reporting requirements under the Securities Exchange Act of 1934. These covenants are subject to important limitations and exceptions that are described in the Indenture, as supplemented by the Fourth Supplemental Indenture.
The Notes were offered and sold pursuant to the Company’s effective shelf registration statement on Form N-2 (File No. 333-238621), as supplemented by a preliminary prospectus supplement dated May 18, 2021 and a final prospectus supplement dated May 18, 2021. The transaction closed on May 25, 2021.
The Company may maintain banking relationships in the ordinary course of business with the Trustee and its affiliates.
The foregoing descriptions of the Fourth Supplemental Indenture and the Notes do not purport to be complete and are qualified in their entirety by reference to the full text of the Fourth Supplemental Indenture and the Notes, respectively, each filed as exhibits hereto and incorporated by reference herein.
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of the Registrant. |
The disclosures set forth in Item 1.01 pertaining to the Notes are incorporated by reference into this Item 2.03.
| Item 9.01 | Financial Statements and Exhibits. |
