Full Circle to sell stock, with proceeds slated for loan investments

By Toni Weeks

San Luis Obispo, Calif., July 14 – Full Circle Capital Corp. plans to sell shares of its common stock in a public offering, according to a 497 filing with the Securities and Exchange Commission.

The externally managed, non-diversified, closed-end management investment company seeks to generate current income and capital appreciation through debt and equity investments.

The company invests primarily in senior secured loans and, to a lesser extent, mezzanine loans and equity securities issued by smaller and lower middle-market companies from a diverse range of industries.

John Stuart and Gregg J. Felton lead the portfolio management team.

The company plans to offer 506,000 shares at $7.40 per share. Full Circle's common stock closed at $7.75 (Nasdaq: FULL) on Friday.

Proceeds will be used to repay outstanding debt under Full Circle’s credit facility. Following such repayment, however, the company intends to borrow additional amounts under the credit facility to make investments in new portfolio companies, the filing said.

There will be no sales load. Including a base management fee of 2.39%, total annual expenses are expected to be 13.73%.

Rye Brook, N.Y-based Full Circle Advisors is the investment adviser.

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