Fifth Street Senior Floating Rate to raise funds to invest in loans

By Toni Weeks

San Luis Obispo, Calif., May 29 - Fifth Street Senior Floating Rate Corp. plans to offer shares of its common stock in a public offering, according to an N-2 filing with the Securities and Exchange Commission.

The newly organized, externally managed, closed-end, non-diversified management investment company aims to maximize total return by generating current income from debt investments while seeking to preserve capital. The company invests primarily in floating-rate senior secured loans, including first-lien, unitranche and second-lien debt instruments, made to private middle-market companies whose debt is rated below investment grade. The company also invests in debt of public companies that are thinly traded. Under normal conditions, at least 80% of assets are invested in senior loans.

The investment committee consists of Leonard M. Tannenbaum, Bernard D. Berman, Ivelin M. Dimitrov, Juan E. Alva, Sunny K. Khorana, Casey J. Zmijeski and Alexander C. Frank.

The company is planning to offer 8,333,334 shares with an over-allotment option for an additional 1.25 million shares.

Morgan Stanley, Deutsche Bank Securities, UBS Investment Bank and Barclays will participate as underwriters.

The offering price, sales load and annual expenses have not yet been determined.

White Plains, N.Y.-based Fifth Street Management acts as the investment adviser.

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