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BDCA Reduces Distribution Rate

July 20, 2017

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BDCA Reduces Distribution Rate

July 18, 2017 | Jared Schneider | Blue Vault

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On July 18, 2017, Business Development Corporation of America (BDCA) announced that the Company is reducing its annualized distribution rate to $0.65 per share from $0.87 per share. This reduces the annual distribution yield on the last available public offering price before the fund closed of $11.15 to 5.8% from 7.8%. The new distribution rate yield on NAV as of March 31, 2017 is 7.6%.

This reduction may be to align its distribution with Net Investment Income, something that is generally favored when a BDC lists on an exchange. Although there have been no official announcements about a listing, BDCA’s management has taken actions that would suggest they are preparing for a listing or liquidity event. BDCA managed $2.5 billion in assets as of March 31, 2017. The fund was originally sponsored and managed by AR Capital/AR Global, and the adviser is now Benefit Street Partners.

 

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