Griffin Capital BDC Names Interim Sub-Advisor to Replace Benefit Street
Griffin Capital BDC Corp, a publicly registered non-traded business development company formerly known as Griffin-Benefit Street Partners BDC Corp., appointed Bain Capital Credit affiliate BCSF Advisors LP as the company’s interim sub-advisor, according to a filing with the Securities and Exchange Commission.
Last week, Benefit Street Partners informed the company of its intention to resign as sub-advisor at the end of July, as they were unable to extend the terms of an agreement with the BDC’s advisor, Griffin Capital BDC Advisor. The agreement was previously revised so that Benefit Street would no longer have an obligation to share certain expense or distribution support obligations.
Griffin Capital BDC Corp., which suspended its offering last year due to unfavorable market conditions and a preference for the interval fund structure, is currently seeking shareholder approval for a plan of reorganization that would allow the BDC to transfer all of its assets to an affiliated interval fund in exchange for fund shares.
“We could not be more pleased to have Bain Capital Credit stand in as the interim subadvisor of Griffin Capital BDC Corp,” said chairman and CEO Kevin Shields in a statement. “It will allow for a much more elegant transition as we navigate the last few weeks of the merger (subject to shareholder approval) of the BDC into the Griffin Institutional Access Credit Fund, which is also sub-advised by Bain Capital Credit. In the end, both the switch of sub-advisors and merger will drive a more favorable shareholder outcome.”
According to the filing, the terms of the interim sub-advisory agreement are substantially similar to the previous agreement with Benefit Street.
Griffin Capital BDC Corp’s $1.5 billion offering was declared effective in January 2015 and later suspended in March 2016 after raising $45 million, according to Summit Investment Research. The company oversees a $35.2 million portfolio with investments in 32 portfolio companies.