TICC Capital Corp’s investment adviser, TICC Management is to be acquired by Benefit Street Partners (BSP).
BSP intends to expand TICC's investment strategy to primarily focus on private debt investments. BSP is the credit investment arm of Providence Equity Partners, a leading global private equity firm. BSP and affiliates manage over USD10 billion in assets across a broad range of credit strategies including high yield, levered loans, private / opportunistic debt, liquid credit, structured credit and commercial real estate debt.
"We believe that the BSP relationship will allow the Company to realise value for our shareholders in new ways. With access to significant bilateral lending opportunities and with the resources of a much larger lending and investing platform, we expect this transaction to place TICC in a position of strength as the credit markets move through this and future cycles," says Jonathan Cohen (pictured), CEO of TICC Capital Corp.
Thomas Gahan, Founder and CEO of BSP, says: "We are very excited about the opportunity to leverage our proprietary sourcing network, disciplined investment process and credit expertise to drive attractive, risk-adjusted returns in the portfolio and continue to serve the Company and its investors."
The closing of the Transaction is contingent upon approval by the Company's stockholders of a new investment advisory agreement between the Company and TICC Management, LLC, the election of four new independent directors, and other conditions that will be described in a related proxy statement. All material terms under the new investment advisory agreement will remain unchanged.
The Company's Board of Directors has unanimously approved a new investment advisory agreement between the Company and TICC Management, LLC and the other proposals that will be described in a related proxy statement. Completion of the Transaction is expected to occur in the fourth quarter of 2015.
The Company intends to file a preliminary proxy statement with the US Securities and Exchange Commission (SEC) to solicit stockholder approval of the new investment advisory agreement and the election of four new independent directors.
UBS Investment Bank served as financial adviser to TICC Management, LLC and Houlihan Lokey served as financial adviser to BSP. K&L Gates LLP acted as legal counsel to TICC Management, LLC and Sutherland Asbill & Brennan LLP acted as legal counsel to BSP in connection with the Transaction.
