10-Q | 2020-09-30 | Filed 2020-11-04 |
10-Q | 2020-06-30 | Filed 2020-08-06 |
10-Q | 2020-03-31 | Filed 2020-05-07 |
10-K | 2019-12-31 | Filed 2020-03-05 |
10-Q | 2019-09-30 | Filed 2019-11-04 |
10-Q | 2019-06-30 | Filed 2019-08-08 |
10-Q | 2019-03-31 | Filed 2019-05-09 |
10-K | 2018-12-31 | Filed 2019-03-06 |
10-Q | 2018-09-30 | Filed 2018-11-07 |
10-Q | 2018-06-30 | Filed 2018-08-08 |
10-Q | 2018-03-31 | Filed 2018-05-02 |
10-K | 2017-12-31 | Filed 2018-03-06 |
10-Q | 2017-09-30 | Filed 2017-11-09 |
10-Q | 2017-06-30 | Filed 2017-08-03 |
10-Q | 2017-03-31 | Filed 2017-05-04 |
10-K | 2016-12-31 | Filed 2017-03-09 |
10-Q | 2016-09-30 | Filed 2016-11-09 |
10-Q | 2016-06-30 | Filed 2016-08-04 |
10-Q | 2016-03-31 | Filed 2016-05-05 |
10-K | 2015-12-31 | Filed 2016-03-10 |
10-Q | 2015-09-30 | Filed 2015-11-05 |
10-Q | 2015-06-30 | Filed 2015-08-06 |
10-Q | 2015-03-31 | Filed 2015-05-11 |
10-K | 2014-12-31 | Filed 2015-03-10 |
10-Q | 2014-09-30 | Filed 2014-11-06 |
10-Q | 2014-06-30 | Filed 2014-08-11 |
10-Q | 2014-03-31 | Filed 2014-05-12 |
10-K | 2013-12-31 | Filed 2014-03-07 |
10-Q | 2013-09-30 | Filed 2013-11-04 |
10-Q | 2013-06-30 | Filed 2013-08-06 |
10-Q | 2013-03-31 | Filed 2013-05-06 |
10-K | 2012-12-31 | Filed 2013-03-04 |
10-Q | 2012-09-30 | Filed 2012-11-06 |
10-Q | 2012-06-30 | Filed 2012-07-30 |
10-Q | 2012-03-31 | Filed 2012-05-03 |
10-K | 2011-12-31 | Filed 2012-03-08 |
10-Q | 2011-09-30 | Filed 2011-11-01 |
10-Q | 2011-06-30 | Filed 2011-08-01 |
10-Q | 2011-03-31 | Filed 2011-05-09 |
10-K | 2010-12-31 | Filed 2011-03-14 |
10-Q | 2010-09-30 | Filed 2010-11-09 |
10-Q | 2010-06-30 | Filed 2010-08-09 |
8-K | 2020-11-04 | |
8-K | 2020-10-20 | |
8-K | 2020-08-03 | |
8-K | 2020-07-23 | |
8-K | 2020-06-23 | |
8-K | 2020-06-22 | |
8-K | 2020-05-28 | |
8-K | 2020-05-07 | |
8-K | 2020-04-20 | |
8-K | 2020-04-17 | |
8-K | 2020-04-17 | |
8-K | 2020-04-15 | |
8-K | 2020-03-13 | |
8-K | 2020-03-05 | |
8-K | 2020-01-31 | |
8-K | 2019-12-17 | |
8-K | 2019-12-08 | |
8-K | 2019-11-04 | |
8-K | 2019-08-08 | |
8-K | 2019-06-17 | |
8-K | 2019-05-09 | |
8-K | 2019-03-26 | |
8-K | 2019-03-06 | |
8-K | 2019-01-10 | |
8-K | 2018-11-07 | |
8-K | 2018-11-05 | |
8-K | 2018-10-05 | |
8-K | 2018-08-08 | |
8-K | 2018-06-07 | |
8-K | 2018-05-02 | |
8-K | 2018-04-02 | |
8-K | 2018-03-12 | |
8-K | 2018-03-06 |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |
Item 3. Quantitative and Qualitative Disclosures About Market Risk |
Item 4. Controls and Procedures |
Part II. Other Information |
Item 1. Legal Proceedings |
Item 1A. Risk Factors |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. Defaults Upon Senior Securities |
Item 4. Mine Safety Disclosures |
Item 5. Other Information |
Item 6. Exhibits |
EX-31.1 | tcrd-ex311_7.htm |
EX-31.2 | tcrd-ex312_6.htm |
EX-31.3 | tcrd-ex313_106.htm |
EX-32.1 | tcrd-ex321_8.htm |
EX-32.2 | tcrd-ex322_9.htm |
EX-32.3 | tcrd-ex323_107.htm |
Balance Sheet | Income Statement | Cash Flow |
---|---|---|
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 September 30, 2020
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 |
6.75% Senior Notes due 2022 | FCRZ |
| The New York Stock Exchange |
6.125% Senior Notes due 2023 | FCRW |
| 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 November 4, 2020 was 30,109,384.
FIRST EAGLE ALTERNATIVE CAPITAL BDC, INC.
FORM 10-Q FOR THE QUARTER ENDED September 30, 2020
Table of Contents
|
| INDEX |
| PAGE |
PART I. |
| FINANCIAL INFORMATION |
|
|
|
|
|
|
|
Item 1. |
| Financial Statements |
|
|
|
|
|
|
|
|
|
| 4 | |
|
|
|
|
|
|
|
| 5 | |
|
|
|
|
|
|
|
| 6 | |
|
|
|
|
|
|
|
| 7 | |
|
|
|
|
|
|
| Consolidated Schedules of Investments as of September 30, 2020 (unaudited) and December 31, 2019 |
| 8 |
|
|
|
|
|
|
|
| 24 | |
|
|
|
|
|
Item 2. |
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |
| 67 |
|
|
|
|
|
Item 3. |
|
| 101 | |
|
|
|
|
|
Item 4. |
|
| 102 | |
|
|
|
|
|
PART II. |
|
| 103 | |
|
|
|
|
|
Item 1. |
|
| 103 | |
|
|
|
|
|
Item 1A. |
|
| 103 | |
|
|
|
|
|
Item 2. |
|
| 104 | |
|
|
|
|
|
Item 3. |
|
| 104 | |
|
|
|
|
|
Item 4. |
|
| 104 | |
|
|
|
|
|
Item 5. |
|
| 104 | |
|
|
|
|
|
Item 6. |
|
| 105 | |
|
|
|
|
|
| 106 |
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 or financial and capital markets, 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 current novel coronavirus ("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)
| September 30, 2020 (unaudited) |
|
| December 31, 2019 |
| ||
Assets: |
|
|
|
|
|
|
|
Investments at fair value: |
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments (cost of $239,803 and $263,444, respectively) | $ | 226,667 |
|
| $ | 242,189 |
|
Controlled investments (cost of $160,446 and $178,769, respectively) |
| 116,695 |
|
|
| 141,932 |
|
Non-controlled, affiliated investments (cost of $2 and $2, respectively) |
| 2 |
|
|
| 4 |
|
Cash |
| 10,536 |
|
|
| 5,890 |
|
Escrows and other receivables |
| 4,745 |
|
|
| 12,353 |
|
Interest, dividends, and fees receivable |
| 3,860 |
|
|
| 4,623 |
|
Deferred tax assets |
| 2,063 |
|
|
| 2,267 |
|
Deferred financing costs |
| 1,009 |
|
|
| 1,619 |
|
Prepaid expenses and other assets |
| 808 |
|
|
| 829 |
|
Due from affiliate |
| 223 |
|
|
| 192 |
|
Total assets | $ | 366,608 |
|
| $ | 411,898 |
|
Liabilities: |
|
|
|
|
|
|
|
Loans payable | $ | 64,661 |
|
| $ | 66,161 |
|
Notes payable ($111,607 and $111,607 face amounts, respectively, reported net of deferred financing costs of $2,136 and $2,742, respectively) |
| 109,471 |
|
|
| 108,866 |
|
Accrued expenses and other liabilities |
| 2,538 |
|
|
| 3,434 |
|
Deferred tax liability |
| 1,532 |
|
|
| 1,927 |
|
Base management fees payable |
| — |
|
|
| 1,103 |
|
Accrued incentive fees |
| 156 |
|
|
| 568 |
|
Accrued interest and fees |
| 158 |
|
|
| 384 |
|
Total liabilities |
| 178,516 |
|
|
| 182,443 |
|
Commitments and contingencies (Note 8) |
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
Common stock, par value $.001 per share, 100,000 common shares authorized, 30,109 and 30,022 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively |
| 30 |
|
|
| 30 |
|
Paid-in capital in excess of par |
| 423,739 |
|
|
| 415,596 |
|
Accumulated deficit |
| (235,677 | ) |
|
| (186,171 | ) |
Total net assets | $ | 188,092 |
|
| $ | 229,455 |
|
Total liabilities and net assets | $ | 366,608 |
|
| $ | 411,898 |
|
Net asset value per share | $ | 6.25 |
|
| $ | 7.64 |
|
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 September 30, |
|
| For the nine months ended September 30, |
| ||||||||||
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
| ||||
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From non-controlled, non-affiliated investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash interest income |
| $ | 4,217 |
|
| $ | 6,935 |
|
| $ | 13,298 |
|
| $ | 23,162 |
|
PIK interest income |
|
| 338 |
|
|
| 329 |
|
|
| 806 |
|
|
| 676 |
|
Other income |
|
| 102 |
|
|
| 276 |
|
|
| 224 |
|
|
| 2,475 |
|
From non-controlled, affiliated investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash interest income |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 57 |
|
Other income |
|
| 48 |
|
|
| 101 |
|
|
| 189 |
|
|
| 493 |
|
From controlled investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash interest income |
|
| 2 |
|
|
| 1,120 |
|
|
| (247 | ) |
|
| 3,550 |
|
PIK interest income |
|
| — |
|
|
| 381 |
|
|
| — |
|
|
| 730 |
|
Dividend income |
|
| 2,579 |
|
|
| 3,610 |
|
|
| 7,873 |
|
|
| 11,087 |
|
Other income |
|
| 43 |
|
|
| 41 |
|
|
| 113 |
|
|
| 116 |
|
Total investment income |
|
| 7,329 |
|
|
| 12,793 |
|
|
| 22,256 |
|
|
| 42,346 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on borrowings |
|
| 2,439 |
|
|
| 3,047 |
|
|
| 7,687 |
|
|
| 9,688 |
|
Base management fees |
|
| 895 |
|
|
| 1,215 |
|
|
| 2,795 |
|
|
| 4,940 |
|
Incentive fees |
|
| — |
|
|
| — |
|
|
| (411 | ) |
|
| — |
|
Administrator expenses |
|
| 268 |
|
|
| 373 |
|
|
| 882 |
|
|
| 1,215 |
|
Other general and administrative expenses |
|
| 598 |
|
|
| 375 |
|
|
| 1,323 |
|
|
| 1,107 |
|
Amortization of deferred financing costs |
|
| 319 |
|
|
| 340 |
|
|
| 1,516 |
|
|
| 1,370 |
|
Professional fees |
|
| 347 |
|
|
| 281 |
|
|
| 1,171 |
|
|
| 1,230 |
|
Directors' fees |
|
| 191 |
|
|
| 169 |
|
|
| 543 |
|
|
| 533 |
|
Total expenses |
|
| 5,057 |
|
|
| 5,800 |
|
|
| 15,506 |
|
|
| 20,083 |
|
Management fee waiver |
|
| (895 | ) |
|
| — |
|
|
| (895 | ) |
|
| (525 | ) |
Total expenses, net of management fee waivers |
|
| 4,162 |
|
|
| 5,800 |
|
|
| 14,611 |
|
|
| 19,558 |
|
Excise and other taxes |
|
| (15 | ) |
|
| 121 |
|
|
| 71 |
|
|
| 359 |
|
Net investment income |
|
| 3,182 |
|
|
| 6,872 |
|
|
| 7,574 |
|
|
| 22,429 |
|
Realized (Loss) Gain and Change in Unrealized Appreciation (Depreciation) on Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized (loss) gain on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
| (84 | ) |
|
| 280 |
|
|
| (25,589 | ) |
|
| (26,203 | ) |
Non-controlled, affiliated investments |
|
| (19 | ) |
|
| (24,652 | ) |
|
| (2,493 | ) |
|
| (24,652 | ) |
Controlled investments |
|
| (17,387 | ) |
|
| 16,701 |
|
|
| (17,650 | ) |
|
| 17,143 |
|
Foreign currency transactions |
|
| — |
|
|
| (191 | ) |
|
| — |
|
|
| (189 | ) |
Net realized loss on investments |
|
| (17,490 | ) |
|
| (7,862 | ) |
|
| (45,732 | ) |
|
| (33,901 | ) |
Net change in unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
| 6,375 |
|
|
| (4,972 | ) |
|
| 8,119 |
|
|
| 2,935 |
|
Non-controlled, affiliated investments |
|
| — |
|
|
| 24,652 |
|
|
| (2 | ) |
|
| 12,752 |
|
Controlled investments |
|
| 23,017 |
|
|
| (18,694 | ) |
|
| (6,914 | ) |
|
| (13,323 | ) |
Translation of assets and liabilities in foreign currencies |
|
| — |
|
|
| 251 |
|
|
| — |
|
|
| (391 | ) |
Net change in unrealized appreciation on investments |
|
| 29,392 |
|
|
| 1,237 |
|
|
| 1,203 |
|
|
| 1,973 |
|
Net realized and unrealized gain (loss) from investments |
|
| 11,902 |
|
|
| (6,625 | ) |
|
| (44,529 | ) |
|
| (31,928 | ) |
Benefit for taxes on unrealized loss on investments |
|
| 165 |
|
|
| 64 |
|
|
| 192 |
|
|
| 335 |
|
Net increase (decrease) in net assets resulting from operations |
| $ | 15,249 |
|
| $ | 311 |
|
| $ | (36,763 | ) |
| $ | (9,164 | ) |
Net investment income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
| $ | 0.10 |
|
| $ | 0.22 |
|
| $ | 0.24 |
|
| $ | 0.71 |
|
Net increase (decrease) in net assets resulting from operations per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
| $ | 0.49 |
|
| $ | 0.01 |
|
| $ | (1.16 | ) |
| $ | (0.29 | ) |
Weighted average shares of common stock outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
| 31,237 |
|
|
| 30,992 |
|
|
| 31,785 |
|
|
| 31,679 |
|
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)
|
| 2020 |
|
| 2019 |
| ||
Net assets at January 1, |
| $ | 229,455 |
|
| $ | 295,681 |
|
Decrease in net assets from operations: |
|
|
|
|
|
|
|
|
Net investment income |
|
| 2,661 |
|
|
| 6,704 |
|
Net realized loss on investments |
|
| (1,614 | ) |
|
| (1,972 | ) |
Net change in unrealized depreciation on investments |
|
| (67,673 | ) |
|
| (4,645 | ) |
Benefit for taxes on unrealized loss on investments |
|
| 470 |
|
|
| 107 |
|
Net (decrease) increase in net assets resulting from operations |
|
| (66,156 | ) |
|
| 194 |
|
Distributions to stockholders: |
|
|
|
|
|
|
|
|
Distributions to stockholders from net investment income |
|
| (6,233 | ) |
|
| (6,768 | ) |
Total distributions to stockholders |
|
| (6,233 | ) |
|
| (6,768 | ) |
Capital share transactions: |
|
|
|
|
|
|
|
|
Repurchase of common stock |
|
| (2,161 | ) |
|
| (1,323 | ) |
Net decrease in net assets from capital share transactions |
|
| (2,161 | ) |
|
| (1,323 | ) |
Total decrease in net assets |
|
| (74,550 | ) |
|
| (7,897 | ) |
Net assets at March 31, |
| $ | 154,905 |
|
| $ | 287,784 |
|
Increase (decrease) in net assets from operations: |
|
|
|
|
|
|
|
|
Net investment income |
|
| 1,731 |
|
|
| 8,851 |
|
Net realized loss on investments |
|
| (26,628 | ) |
|
| (24,067 | ) |
Net change in unrealized appreciation on investments |
|
| 39,483 |
|
|
| 5,382 |
|
(Provision) benefit for taxes on unrealized loss on investments |
|
| (443 | ) |
|
| 164 |
|
Net increase (decrease) in net assets resulting from operations |
|
| 14,143 |
|
|
| (9,670 | ) |
Distributions to stockholders: |
|
|
|
|
|
|
|
|
Distributions to stockholders from net investment income |
|
| (3,530 | ) |
|
| (6,633 | ) |
Total distributions to stockholders |
|
| (3,530 | ) |
|
| (6,633 | ) |
Capital share transactions: |
|
|
|
|
|
|
|
|
Issuance of common stock |
|
| 30,000 |
|
|
| — |
|
Repurchase of common stock |
|
| — |
|
|
| (4,696 | ) |
Net increase (decrease) in net assets from capital share transactions |
|
| 30,000 |
|
|
| (4,696 | ) |
Total increase (decrease) in net assets |
|
| 40,613 |
|
|
| (20,999 | ) |
Net assets at June 30, |
| $ | 195,518 |
|
| $ | 266,785 |
|
Increase in net assets from operations: |
|
|
|
|
|
|
|
|
Net investment income |
|
| 3,182 |
|
|
| 6,872 |
|
Net realized loss on investments |
|
| (17,490 | ) |
|
| (7,862 | ) |
Net change in unrealized appreciation on investments |
|
| 29,392 |
|
|
| 1,237 |
|
Benefit for taxes on unrealized loss on investments |
|
| 165 |
|
|
| 64 |
|
Net increase in net assets resulting from operations |
|
| 15,249 |
|
|
| 311 |
|
Distributions to stockholders: |
|
|
|
|
|
|
|
|
Distributions to stockholders from net investment income |
|
| (3,011 | ) |
|
| (6,453 | ) |
Total distributions to stockholders |
|
| (3,011 | ) |
|
| (6,453 | ) |
Capital share transactions: |
|
|
|
|
|
|
|
|
Repurchase of common stock |
|
| — |
|
|
| (5,571 | ) |
Purchase of common stock in tender offer |
|
| (19,664 | ) |
|
| — |
|
Net decrease in net assets from capital share transactions |
| $ | (19,664 | ) |
| $ | (5,571 | ) |
Total decrease in net assets |
| $ | (7,426 | ) |
| $ | (11,713 | ) |
Net assets at September 30, |
| $ | 188,092 |
|
| $ | 255,072 |
|
Common shares outstanding at end of period |
|
| 30,109 |
|
|
| 30,587 |
|
Capital share activity: |
|
|
|
|
|
|
|
|
Shares issued |
|
| 5,618 |
|
|
| — |
|
Shares repurchased |
|
| 341 |
|
|
| 1,730 |
|
Shares purchased in tender offer |
|
| 5,189 |
|
|
| — |
|
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 nine months ended September 30, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net decrease in net assets resulting from operations |
| $ | (36,763 | ) |
| $ | (9,164 | ) |
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Net change in unrealized appreciation on investments |
|
| (1,203 | ) |
|
| (1,973 | ) |
Net realized loss on investments |
|
| 44,339 |
|
|
| 42,818 |
|
Net realized gain on foreign exchange currency transactions |
|
| — |
|
|
| 189 |
|
Increase in investments due to interest paid-in-kind |
|
| (699 | ) |
|
| (2,049 | ) |
Amortization of deferred financing costs |
|
| 1,516 |
|
|
| 1,370 |
|
Accretion of discounts on investments and other fees |
|
| (505 | ) |
|
| (918 | ) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Purchases of investments |
|
| (50,319 | ) |
|
| (99,368 | ) |
Proceeds from sales and paydowns of investments |
|
| 54,480 |
|
|
| 151,906 |
|
Decrease in interest, dividends and fees receivable |
|
| 763 |
|
|
| 610 |
|
Decrease (increase) in escrow and other receivables |