Fidus to invest in middle-market company debt via stock proceeds

By Toni Weeks

San Luis Obispo, Calif., Aug. 22 – Fidus Investment Corp. announced plans to sell $50 million of its common stock in a public offering, according to a 497 filing with the Securities and Exchange Commission.

The externally managed, closed-end, non-diversified management investment company seeks to provide attractive risk-adjusted returns by generating current income from debt investments and capital appreciation from its equity-related investments. The company invests primarily in mezzanine, senior secured or unitranche loans and equity securities of lower middle-market companies throughout the United States.

The investment committee is comprised of Edward H. Ross, Thomas C. Lauer, B. Bragg Comer III, John J. Ross II, Paul E. Tierney Jr., John H. Grigg and W. Andrew Worth.

The company will offer the shares in negotiated or at-the-market transactions via agents Raymond James & Associates, Inc. and Robert W. Baird & Co. Inc. Its common stock (Nasdaq: FDUS) closed at $18.49 on Aug. 19.

Total annual expenses of 10.9% include a 2.6% base management fee. Shareholders will be subject to a 1.5% sales load.

Evanston, Ill.-based Fidus Investment Advisors, LLC serves as the investment adviser.

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