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8-K - 8-K - Business Development Corp of Americav366250_8k.htm

 

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FOR IMMEDIATE RELEASE

 

BDCA Makes Direct Originated Investment in Boston Market

 

Refinancing Transaction for a Well-known Restaurant Chain in the Fast Casual Segment

 

New York, New York, January 24, 2014 ˗ Business Development Corporation of America (“BDCA”), a business development company primarily focused on senior debt investments in middle market private companies, closed on a direct originated financing transaction for Boston Market Corporation (“Boston Market”). Boston Market is a leader in the fast casual restaurant segment, with approximately 480 restaurants across the United States. Boston Market is owned by an affiliate of Sun Capital Partners.

 

The financing provided by BDCA consisted of a $54 million second lien senior secured credit facility, with a five-year term and one-year call premium. Proceeds from the financing were used to refinance an existing credit facility, provide working capital liquidity for new store buildouts and to distribute a small return of capital to the sponsor. BDCA retained $25 million of the financing.

 

“We see our investment in Boston Market as a great opportunity to provide capital to a leading player in the fast casual restaurant segment,” said Pete Budko, President and Chief Operating Officer of BDCA. “Our direct origination team continues to find and execute upon highly attractive middle market financing opportunities for our shareholders.”

 

About BDCA

 

A registration statement relating to the common stock of BDCA was filed with and has been declared effective by the U.S. Securities and Exchange Commission (the “SEC”). These securities have not been approved or disapproved by the SEC or any state securities commission, nor have they passed upon the accuracy or adequacy of the prospectus. The offering of BDCA’s common stock is being made solely by means of a written prospectus forming part of the effective registration statement. The prospectus, which is available at www.bdcofamerica.com and http://www.sec.gov and may be obtained by calling 1-888-518-8073, contains additional information about BDCA. The prospectus should be read carefully by an investor before investing. Investors are advised to consider the investment objectives, risks, charges and expenses of BDCA carefully before investing. This press release is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer and sale is not permitted.

 

Important Notice

 

The statements in this press release that are not historical facts may be forward-looking statements, including statements with regard to the future performance of BDCA. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different.

 

Performance data quoted herein represents past performance, and past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

 

Prospective investors should consider the investment objectives, risks, and charges and expenses of BDCA carefully before investing. BDCA’s prospectus contains information about these important issues as well as other information about BDCA. A prospectus for BDCA may be obtained by calling 877-373-2522 or writing us in care of: Realty Capital Securities, LLC, Three Copley Place, Suite 3300, Boston, MA 02116. You may also download a copy of BDCA’s prospectus by going to www.bdcofamerica.com. Please read the prospectus carefully before investing.

 

 
 

 

Contacts

 

Anthony J. DeFazio

 

Nicholas Radesca, CFO & Treasurer

DDCworks Business Development Corporation of America
tdefazio@ddcworks.com nradesca@arlcap.com
Ph: (484-342-3600) Ph: (212-415-6500)