By Rebecca Melvin
New York, April 7 - Fifth Street Finance Corp. priced $150 million of five-year convertible senior notes Thursday after overnight marketing at par to yield 5.375% with an initial conversion premium of 10%, according to a company news release.
The Rule 144A offering came at the cheap end of talk, which was for a 4.875% to 5.375% coupon and a 10% to 15% premium.
There is a greenshoe of $22.5 million for the deal, which was sold via J. P. Morgan Securities LLC, Morgan Stanley & Co. Inc. and Wells Fargo Securities LLC.
The notes are non-callable with no puts.
Proceeds will be used to reduce outstanding borrowings, to make investments in small and mid-sized companies and for general corporate purposes.
White Plains, N.Y.-based Fifth Street is a specialty finance company that lends to and invests in small and mid-sized companies in connection with an investment by private equity sponsors.
| Issuer: | Fifth Street Finance Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $150 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | April 1, 2016
|
| Bookrunner: | J. P. Morgan Securities LLC, Morgan Stanley & Co. Inc., Wells Fargo Securities LLC
|
| Coupon: | 5.375%
|
| Price: | Par
|
| Yield: | 5.375%
|
| Conversion premium: | 10%
|
| Conversion price: | $14.76
|
| Conversion ratio: | 67.7415
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Price talk: | 4.875%-5.375%, up 10%-15%
|
| Pricing date: | April 7
|
| Settlement date: | April 12
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: FSC
|
| Stock reference price: | $13.42 at close April 6
|
| Market capitalization: | $722.4 million
|
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