 BOSTON, Aug. 06, 2020 GLOBE NEWSWIRE -- First Eagle Alternative Capital BDC, Inc. formerly known as THL Credit, Inc. NASDAQ: FCRD First Eagle Alternative Capital BDC or the Company, a direct lender to middle market companies, today announced financial results for its second fiscal quarter ended June 30, 2020. Additionally, the Company announced that its Board of Directors the Board has declared a third fiscal quarter 2020 dividend of 0.10 per share payable on September 30, 2020, to stockholders of record as of September 15, 2020. With an improvement in the broader markets this quarter and more visibility into the impact of COVID-19 on portfolio company performance, we saw an improvement in our fair value marks which in turn resulted in a meaningful increase to our net asset value per share increase this quarter of 6, said Chris Flynn, President of First Eagle Alternative Credit. The increase was partially offset by net investment income per share that lagged our dividend. This was largely attributable to one-time and temporary items including our April equity raise and the impact of a smaller Logan portfolio in Q2. Our advisor has agreed to waive management fees for the next three quarters, and based on our NAV as of June 30th, the completion of our tender offer in July was accretive by 0.31 per share, or 6. We believe we are well positioned from both a leverage and liquidity standpoint to support the portfolio, to modestly grow our book in the coming quarters, and to cover our dividend going forward.HIGHLIGHTS in millions, except per share amounts Portfolio resultsAs of June 30, 2020 Total assets376.9 Investment portfolio, at fair value331.0 Net assets195.5 Net asset value per share5.54 Weighted average yield on investments6.8 Quarter ended June 30, 2020Quarter ended June 30, 2019 Portfolio activity Total portfolio investments made, at par5.5 46.5 Total portfolio investments made, at cost5.4 45.9 Number of new portfolio investments- 7 Number of portfolio investments at end of period44 48 Operating results Total investment income7.0 15.4 Net investment income1.7 8.9 Net increase decrease in net assets from operations14.1 9.7 Net investment income per share 10.05 0.28 Dividends declared per share0.10 0.21 1 For the quarter ended June 30, 2020, net investment income per share excluding the impact of the acceleration of deferred financing costs in connection with the reduction of commitments under our credit facility, and excluding the impact of the equity issuance and Tender Offer timing as defined below was 0.07 per share.PORTFOLIO AND INVESTMENT ACTIVITY In the second quarter, the Company funded 5.5 million in follow-on investments, including delayed draw and revolver fundings.Notable investments for the quarter at par included: 1.8 million follow-on investment in PDFTron Systems Inc., including a 0.4 million first lien senior secured term loan and 1.4 million in delayed draw and revolver fundings.Notable realizations for the quarter included: Repayment of a first lien senior secured term loan in Holland Intermediate Acquisition Corp. which resulted in proceeds received of 2.6 million and an additional 1.3 million in expected proceeds which are reflected as a receivable. The realized loss of 17.3 million was offset by a corresponding reversal of unrealized depreciation.As of June 30, 2020, these transactions, coupled with changes in net unrealized appreciation on the portfolio during the quarter, bring the total fair value of First Eagle Alternative Capital BDCs investment portfolio to 331.0 million across 44 portfolio investments. The Companys investment portfolio as of June 30, 2020 by investment type at fair value is presented below in millions:DescriptionFair Value Percentage of Total First lien senior secured debt234.1 70.8 Investment in Logan JV 57.7 17.4 Equity investments 24.9 7.5 Second lien debt 11.5 3.5 Investments in funds 2.8 0.8 Total investments331.0 100.0 As of June 30, 2020, the weighted average yield of the debt and income-producing securities, including the Companys investment in THL Credit Logan JV LLC the Logan JV and reflecting the impact of investments on non-accrual, in the investment portfolio at their current cost basis was 6.8 percent. As of June 30, 2020, First Eagle Alternative Capital BDC had loans on non-accrual status with an aggregate amortized cost of 67.5 million and fair value of 40.5 million, or 16.2 percent and 12.2 percent of the portfolios amortized cost and fair value, respectively. As of June 30, 2020, 100 percent of the Companys debt investments bore interest based on floating rates, which may be subject to interest rate floors, such as London Interbank offer rate, or LIBOR.This compares to the portfolio as of December 31, 2019, which had a fair value of 384.1 million across 52 portfolio investments. First Eagle Alternative Capital BDCs investment portfolio by investment type at fair value as of December 31, 2019 in presented below in millions:DescriptionFair Value Percentage of Total First lien senior secured debt263.6 68.7 Investment in Logan JV 83.4 21.7 Equity investments 21.5 5.6 Second lien debt 12.0 3.1 Investments in funds 3.6 0.9 Total investments384.1 100.0 As of December 31, 2019, the weighted average yield of the debt and other income-producing securities in the investment portfolio, including the Logan JV, and reflecting the impact of investments on non-accrual, at their cost basis was 8.7 percent excluding the Companys investments in broadly syndicated first lien senior secured term loans, the weighted average yield on investments was 8.9 percent. As of December 31, 2019, the Company had loans on non-accrual status with an aggregate amortized cost of 36.0 million and fair value of 15.1 million, or 8.1 percent and 3.9 percent of the portfolios amortized cost and fair value, respectively. As of December 31, 2019, 100 percent of the Companys debt investments bore interest based at floating rates, which may be subject to interest rate floors, such as LIBOR.RESULTS OF OPERATIONSInvestment income A breakdown of investment income for the three months ended June 30, 2020 and 2019 is presented below in millions: Three months ended June 30, 2020 2019 Interest income on debt securities Cash interest 3.9 8.2 PIK interest 0.4 0.7 Prepayment premiums 0.2 Net accretion of discounts and other fees 0.2 0.4 Total interest on debt securities 4.5 9.5 Dividend income 2.3 3.8 Interest income on other income-producing securities 0.1 Fees related to non-controlled, affiliated investments 0.1 0.2 Other income 0.1 1.8 Total investment income 7.0 15.4 The decrease in investment income between the periods was primarily due to the contraction in overall investment portfolio since June 30, 2019, the decline in LIBOR, and the additional loans put on non-accrual status subsequent to June 30, 2019. Additionally, dividend income decreased due to a smaller Logan JV portfolio and the sale of Copperweld Bimetallics LLC in September 2019.Expenses A breakdown of expenses for the three months ended June 30, 2020 and 2019 is presented below in millions: For the three months ended June 30, 2020 2019 Expenses Interest and fees on borrowings 3.1 3.6 Base management fees 0.9 1.8 Other expenses 1.0 1.1 Administrator expenses 0.3 0.4 Total expenses 5.3 6.9 Management fee waiver 0.5 Total expenses, net of fee waivers 5.3 6.4 Income tax provision, excise and other taxes 0.1 Total expenses after taxes 5.3 6.5 The decrease in operating expenses between the three month periods was due primarily to lower interest and fees on borrowings due to a reduction in borrowings outstanding, a decrease in LIBOR and lower fees resulting from a reduction in credit facility size. Additionally, the Company incurred lower base management fees during the three months ended June 30, 2020 as result of portfolio contraction.Net investment income Net investment income totaled 1.7 million and 8.9 million for the three months ended June 30, 2020 and 2019, respectively, or 0.05 and 0.28 per share, respectively, based upon 34,310,634 and 31,769,141 weighted average common shares outstanding, respectively.The decrease in net investment income for the respective periods is primarily attributable to lower dividend income and a decrease in interest on debt and other income-producing investments due to portfolio contraction and additional loans put on non-accrual status offset by lower net base management fees and interest and fees on borrowings.Net realized gains and losses on investments, net of income tax provision For the three months ended June 30, 2020, First Eagle Alternative Capital BDC recognized a net realized loss on portfolio investments of 26.6 million, primarily related to the 17.3 million loss from the realization of Holland Intermediate Acquisition Corp and the 5.3 million loss from the restructuring of the Companys investment in Allied Wireline Services, LLC, both of which were offset by corresponding reversals of unrealized depreciation. For the three months ended June 30, 2019, the Company recognized a net realized loss on portfolio investments of 24.1 million, primarily related to the LAI International Inc. exit.Net change in unrealized appreciation on investments For the three months ended June 30, 2020 and 2019, First Eagle Alternative Capital BDCs investment portfolio had a net change in unrealized appreciation of 39.5 million and 5.7 million, respectively. 