Dechert Advised Alcentra Capital Corporation on Shareholder Activism Matters, Strategic Alternatives Process and Subsequent Merger with Crescent Capital BDC, Inc.

February 07, 2020

Dechert advised Alcentra Capital Corporation on shareholder activism matters and in connection with its strategic alternatives process and subsequent merger with Crescent Capital BDC, Inc. The combined company has a portfolio in excess of $900 million and trades on the NASDAQ under the ticker symbol “CCAP”.

Under the terms of the merger agreement, in exchange for approximately 12.9 million shares of Alcentra Capital common stock, Alcentra Capital’s stockholders received: (i) 5.2 million shares of Crescent BDC common stock, or 0.4041 shares of Crescent BDC common stock per share, (ii) $19.3 million in cash, or $1.50 per share, from Crescent BDC (less $10.3 million or $0.80 per share in final dividends paid by Alcentra Capital on January 31, 2020) and (iii) $21.6 million in cash, or $1.68 per share, in transaction support provided by Crescent Cap Advisors, LLC, Crescent BDC’s investment adviser.

The Dechert team that advised Alcentra Capital was led by corporate partners Harry Pangas and Gregory Schernecke, with assistance from corporate associates Ross MacConnell, Clay Douglas, Madeleine Williams, Yitian Jin and Carly Robinson, as well as tax partner Ari Zak and tax associate Mansi Seth.

About Dechert’s Permanent Capital Practice

Dechert’s multidisciplinary permanent capital team is actively engaged in advising asset managers in all aspects of their capital strategies. We have particularly deep experience in BDCs, having worked with this structure since it was first authorized by law in 1980. We also act for 41 of the top 50 global private debt firms as identified by Private Debt Investor in 2019. Our lawyers possess a detailed understanding of the most current trends and developments, the latest regulatory hurdles, up-to the-minute market terms and an insider’s perspective when it comes to regulatory compliance. We are committed to turning our experience and expertise into value for our clients. 

About Dechert

Dechert is a leading global law firm with 26 offices around the world. We advise on matters and transactions of the greatest complexity, bringing energy, creativity and efficient management of legal issues to deliver commercial and practical advice for clients.