First Eagle Alternative Capital BDC, Inc. (FCRD)

First Eagle Alternative Capital BDC was a business development company, a type of closed-end investment company that lends to and invests in middle-market private businesses. It made senior secured loans, second-lien loans and some equity investments. Like other BDCs, it paid out most of its income to shareholders as dividends. It was externally managed by an affiliate of First Eagle Investments.

The company went public on NASDAQ in 2010 as THL Credit, Inc., sponsored by the private equity firm Thomas H. Lee Partners. It traded for years under the ticker TCRD. In 2020 First Eagle acquired the business of its investment adviser, and the BDC was renamed First Eagle Alternative Capital BDC with the new ticker FCRD. The portfolio had suffered credit losses over the prior decade, and the stock traded well below net asset value.

In October 2022 Crescent Capital BDC agreed to acquire the company. The merger closed on March 9, 2023. For each FCRD share, holders received 0.20635 shares of Crescent Capital BDC, $0.29 in cash from Crescent BDC and $1.17 in cash paid by Crescent's adviser as transaction support. FCRD stock then stopped trading on NASDAQ.

The deal added scale to Crescent Capital BDC, which continues to trade on NASDAQ under the symbol CCAP. Former FCRD holders who kept their new shares became CCAP shareholders. FCRD's portfolio was folded into Crescent's middle-market lending book.