THL Credit raises funds for middle-market investments via stock offer

By Toni Weeks

San Luis Obispo, Calif., June 18 - THL Credit, Inc. plans to conduct a public offering of its common stock, 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, primarily through investments in privately negotiated debt and equity securities of middle-market companies. The company is a direct lender to middle-market companies that invest in subordinated, or mezzanine, debt and second-lien secured debt, which may include an associated equity component. First-lien secured loans with structures containing higher interest rates, including unitranche investments, or loan structures combining characteristics of traditional first-lien senior secured, second-lien and subordinated loans are also possible investments.

The portfolio managers will be James K. Hunt, Sam W. Tillinghast, W. Hunter Stropp and Christopher J. Flynn.

The company will offer 6.6 million shares with a 30-day over-allotment option for an additional 990,000 shares. The last reported sales price of the company's stock (Nasdaq: TCRD) on June 17 was $15.22.

The sales load will be 4%. Total annual expenses of 6.87% include a 2.02% base management fee.

Underwriters BofA Merrill Lynch, Citigroup, Credit Suisse and Barclays are leading the offer; the syndicate also includes Keefe, Bruyette & Woods, BB&T Capital Markets, JMP Securities and Maxim Group LLC.

Boston-based THL Credit Advisors LLC is the investment adviser.

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