By Stephanie N. Rotondo
Phoenix, June 18 – Oxford Lane Capital Corp. priced $30.61 million additional shares of its 7.5% series 2023 term preferred stock in an underwritten public offering, the company said in a press release on Thursday.
The $25-par shares were sold at $24.50 per share, a slight premium to Thursday’s closing share price of $24.47.
Ladenburg Thalmann & Co. Inc. and Deutsche Bank Securities Inc. were the joint bookrunning managers.
Dividends are payable monthly. The preferreds become redeemable on June 30, 2016 and must be redeemed by June 30, 2023 at par plus accrued dividends.
The company will also be required to redeem some or all of the preferreds if they fall below an asset coverage ratio of at least 200%.
Proceeds will be used for acquiring investments and/or for general working capital purposes, which may include the payment of operating expenses, including advisory and administrative fees and expenses and/or for the redemption of some or all of the company’s series 2017 term preferreds.
Oxford Lane is a non-diversified, closed-end management investment company based in Greenwich, Conn.
| Issuer: | Oxford Lane Capital Corp.
|
| Securities: | Series 2023 preferred shares
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| Amount: | $30.61 million, or 1.23 million shares
|
| Maturity: | June 30, 2023
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| Bookrunners: | Ladenburg Thalmann & Co. Inc., Deutsche Bank Securities Inc.
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| Co-managers: | BB&T Capital Markets, Maxim Group LLC, National Securities Corp.
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| Dividend: | 7.5%
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| Price: | $24.50
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| Par: | $25.00
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| Call options: | On or after June 30, 2016 at par plus accrued dividends, or if the company falls below an asset coverage ratio of 200%
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| Pricing date: | June 18
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| Settlement date: | June 23
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| Stock symbol: | Nasdaq: OXLCO
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| Stock price: | $24.47 as of Thursday’s close
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