By Stephanie N. Rotondo
Phoenix, Nov. 20 – Oxford Lane Capital Corp. priced $25 million of its 8.125% series 2024 term preferreds in an add-on offering, according to a press release published on Thursday.
The company initially sold $28 million of the preferreds on June 30.
Ladenburg Thalmann & Co. Inc. and Deutsche Bank Securities Inc. are the joint bookrunning managers.
Dividends are payable monthly. The preferreds become redeemable on or after June 30, 2017. The preferreds are mandatorily redeemable June 30, 2024 at par plus accrued dividends.
The company is also required to redeem a portion of the preferreds if its asset coverage ratio falls below 200%. The amount redeemed will equal the lesser of the minimum number of shares needed to be redeemed in order to meet the asset coverage ratio or the maximum number of shares the company can legally redeem with available cash.
Proceeds will be used to acquire investments in accordance with the company’s investment objectives and strategies and for general working capital purposes.
Oxford Lane is a Greenwich, Conn.-based closed-end management investment company.
| Issuer: | Oxford Lane Capital Corp.
|
| Securities: | Series 2024 term preferred stock
|
| Amount: | $25 million, or 1 million
|
| Greenshoe: | $3.75 million, or 150,000 shares
|
| Maturity: | June 30, 2024
|
| Bookrunners: | Ladenburg Thalmann & Co. Inc., Deutsche Bank Securities Inc.
|
| Co-managers: | BB&T Capital Markets, Maxim Group LLC
|
| Dividend: | 8.125%
|
| Price: | Par of $25.00
|
| Yield: | 8.125%
|
| Call options: | On or after June 30, 2017 at par plus accrued dividends; also if the asset coverage ratio falls below 200%
|
| Pricing date: | Nov. 20
|
| Settlement date: | Nov. 25
|
| Stock symbol: | Nasdaq: OXLCN
|
| Stock price: | $25.00 as of Nov. 20 close
|
| Original issue: | $28 million priced June 30
|
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