TCP Capital to price $100 million 5.5-year convertible notes to yield 4.5%-4.75%, up 10%

By Rebecca Melvin

New York, Aug. 30 – TCP Capital Corp. launched an offering of $100 million of 5.5-year convertible senior unsecured notes after the market close on Tuesday that were expected to price ahead of the market open on Wednesday. The notes are talked to yield 4.5% to 4.75% with an initial conversion premium of 10%, according to market sources.

The Rule 144A deal, which has an option to purchase up to an additional $15 million of notes to cover over over-allotments, was being sold via bookrunner Raymond James.

The company intends to use the proceeds to repay debt under its revolving credit facilities, which will increase the funds available under the revolver to make additional investments in portfolio companies in accordance with its investment objective, and for other general corporate purposes.

Santa Monica, Calif.-based TCP Capital is a specialty finance company focused on credit lending to middle-market companies and small businesses.

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