Deal Details

Initial Public Offering

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Summary

About

Alcentra Capital Corporation (“Alcentra” or the “Company”) (NASDAQ-GS: ABDC) recently completed an initial public offering of 6,666,666 common shares at a price of $15.00 per share, generating gross proceeds of approximately $100.0 million. The Company intends to use the net proceeds from the offering to repay its outstanding debt under its senior secured term loan credit agreement, which it took on as part of the purchase of its initial portfolio of debt and equity investments. The remaining proceeds will be used to make investments in portfolio companies and for general corporate purposes.

Alcentra is an externally-managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's investment objective is to generate both current income and capital appreciation primarily by making direct investments in lower middle-market companies in the form of subordinated debt and, to a lesser extent, senior debt and minority equity investments. The Company seeks to invest primarily in lower middle-market companies, which the Company defines as companies having annual earnings before interest, taxes, depreciation and amortization, or EBITDA, of between $5 million and $15 million, and/or revenues of between $10 million and $100 million, although the Company may opportunistically make investments in larger or smaller companies. The Company's investment activities are managed by its investment adviser, Alcentra NY, LLC. Alcentra is headquartered in New York, New York.

INVESTORS SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE COMPANY CAREFULLY BEFORE INVESTING. THIS AND OTHER INFORMATION IS AVAILABLE IN THE PROSPECTUS, WHICH CAN BE OBTAINED FROM YOUR FINANCIAL ADVISOR. THE PROSPECTUS SHOULD BE READY CAREFULLY BEFORE INVESTING.

There can be no assurance that the investment objectives will be attained. Shares of closed-end investment companies, including business development companies, frequently trade at a discount to their net asset value. If shares trade at a discount to the
net asset value, it may increase the risk of loss for purchasers.

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