By Stephanie N. Rotondo
Phoenix, May 29 - Oxford Lane Capital Corp. sold $28 million of 8.125% series 2024 term preferred shares, the company said in a press release Thursday.
Ladenburg Thalmann & Co. Inc. and Deutsche Bank Securities Inc. are the joint bookrunners. Dividends on the $25-par shares will be payable monthly.
The preferreds are callable starting June 30, 2017 and mature on June 30, 2024.
Should the company's asset coverage ration fall below 200%, Oxford will redeem a portion of the preferreds at the lesser of minimum number of shares needed to be redeemed in order to reach the necessary asset coverage ratio or the maximum number of shares that can be redeemed with cash legally available.
The Greenwich, Conn.-based company intends to use proceeds for acquiring investments and for general working capital purposes, which may include operating expenses, including advisory and administrative fees and expenses.
Oxford Lane is a closed-end management investment company that invests in securitization vehicles which primarily invest in senior secured loans made to companies whose debt is unrated or is rated below investment grade.
| Issuer: | Oxford Lane Capital Corp.
|
| Securities: | Series 2024 term preferred shares
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| Amount: | $28 million, or 1.12 million shares
|
| Greenshoe: | $4.2 million, or 168,000 shares
|
| Maturity: | June 30, 2024
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| Bookrunners: | Ladenburg Thalmann & Co. Inc. and Deutsche Bank Securities Inc.
|
| Co-managers: | BB&T Capital Markets, BTIG LLC, Incapital LLC, Maxim Group LLC and MLV & Co. LLC.
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| Dividend: | 8.125%
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| Price: | Par of $25
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| Yield: | 8.125%
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| Call options: | On or after June 30, 2017 or if the company's asset coverage ratio falls below 200% at par plus accrued dividends
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| Pricing date: | May 29
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| Settlement date: | June 5
|
| Expected listing: | Nasdaq: OXLCN
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