Franklin BSP Capital Corporation Surveillance Report

Company Profile

Formed in January 2020, Franklin BSP Capital Corporation (“FBCC” or “the company”) is a closed-end, externally managed business development company (“BDC”) that primarily provides senior secured first lien loans to middle market U.S. companies. The company has elected to be treated as a regulated investment company (“RIC”) for federal income tax purposes.
FBCC is externally managed by Franklin BSP Capital Adviser L.L.C. (“Adviser”), an affiliate of Benefit Street Partners (“BSP”), a global alternative credit management firm and an affiliate of Franklin Templeton.
On January 24, 2024, Franklin BSP Lending Corporation (“FBLC”) merged with FBCC, the surviving entity. FBLC, which KBRA had rated since 2015, was a non-listed BDC with a $2.8 billion investment portfolio at fair value (FV) as of the merger date, while FBCC, also a non-listed BDC, had a $756 million portfolio at FV. The merged BDCs operate under the 150% regulatory asset coverage ratio…