Medley Management Inc. (MDLM)

[Enterprising Investor]

Sierra Income Corp. Agrees to Merger With Barings BDC (9/21/21)

By Stephen Nakrosis

Business development company Sierra Income Corp. on Tuesday said it agreed to a deal which will see it merge with and into Barings BDC Inc.

The combined company will be managed by Barings LLC.

Under the terms of the deal, Sierra stockholders will receive 0.44973 share of Barings BDC common stock for each share of Sierra common stock, the companies said, adding that Barings BDC will also pay $100 million in cash, or about 98 cents a share, to Sierra stockholders at the close of the deal.

According to the companies, the deal represents a total consideration for Sierra stockholders of about $588.6 million, or about $5.76 per Sierra share, based on the $10.63 closing price of Barings BDC shares on Sept. 20.

At the close of the deal, Barings BDC will increase the size of its board and two current independent members of Sierra's board will be selected for the Barings BDC board.

The boards of directors of both companies unanimously approved the deal, which is currently expected to close in the first quarter of next year, the companies said.

https://www.marketwatch.com/story/sierra-income-corp-agrees-to-merger-with-barings-bdc-271632257912