Franklin BSP Capital Corporation reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company, which operates as a business development company (BDC), experienced a substantial increase in total assets, rising to $4.4 billion from $946.6 million at the end of 2023, largely due to the merger with Franklin BSP Lending Corporation (FBLC) completed on January 24, 2024. This merger resulted in the acquisition of approximately $2.8 billion in investments at fair value.
Total investment income for the third quarter of 2024 reached $106.2 million, a dramatic increase from $24.3 million in the same period of 2023. For the nine months ended September 30, 2024, total investment income was $307.4 million, compared to $70.6 million in the prior year. The increase in investment income was attributed to the expanded asset base following the merger, which also led to a rise in net investment income to $44.4 million for the third quarter, up from $14.1 million in 2023.
Despite the positive revenue growth, the company reported a net realized loss of $21.1 million for the nine months ended September 30, 2024, compared to a loss of $0.3 million in the previous year. This loss was primarily driven by restructuring activities related to first lien debt investments. Additionally, the net change in unrealized depreciation on investments was $(32.0) million for the nine months, compared to $(2.3) million in 2023.
The company’s total liabilities surged to $2.0 billion as of September 30, 2024, from $366.2 million at the end of 2023, reflecting the increased debt load associated with the merger. The net asset value per share attributable to common stock decreased to $14.44 from $15.10 year-over-year, while total net assets attributable to common stock rose to $1.95 billion from $390.6 million.
Management fees for the third quarter of 2024 were reported at $14.6 million, significantly higher than $1.1 million in the same quarter of 2023, reflecting the larger asset base post-merger. Incentive fees also increased to $8.8 million for the third quarter, compared to $2.1 million in the prior year.
As of September 30, 2024, the company had $135.4 million in cash and cash equivalents, up from $70.0 million a year earlier, and maintained a strong asset coverage ratio of 198%. The company declared distributions totaling $100.5 million for the nine months ended September 30, 2024, compared to $32.5 million in the same period of 2023.
About Franklin BSP Capital Corp
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