Benefit StreetPartners LLC has agreed to acquire , the investmentadviser of Business DevelopmentCorp. of America.
American Realty Capital II Advisors LLC, BusinessDevelopment Corp. of America's sponsor, entered a membership interest purchaseagreement with Benefit Street on July 19. The membership interests in BDCA Adviserheld by American Realty would be sold to Benefit Street under the agreement.
If the transaction is completed, the investment advisoryagreement between BDCA Adviser and Business Development Corp. of America wouldbe reviewed by a special committee of Business Development Corp. of Americaindependent directors. Benefit Street would maintain the terms of the currentagreement, according to a regulatory filing.
Benefit Street would also make an investment in BusinessDevelopment Corp. of America at current net asset value and recommend four newdirectors to its board. It would also recommend replacing existing insiderdirectors with Thomas Gahan and/or Richard Byrne, who are respectively the CEOand president of Benefit Street.
The transaction requires approval from the BusinessDevelopment Corp. of America special committee and from stockholders.