New York, Jan. 26 – TPG Specialty Lending, Inc. priced $100 million of five and a half-year convertible senior notes with a 4.5% coupon and an initial conversion premium of 15% after the close on Thursday, according to a news release.
The deal came in line with the announced size of $100 million and at the cheap end of talk for a yield of 4.25% to 4.5%. The conversion premium was talked at 15%.
BofA Merrill Lynch and Morgan Stanley & Co. LLC are the joint bookrunners.
There is a $15 million over-allotment option.
Conversions will be settled in cash, common stock, or a combination, at the company’s option. The issue is non-callable but is contingently convertible upon hitting a 130% price hurdle.
Proceeds from the Rule 144A deal will be used to pay down debt under a revolving credit facility.
TPG is a New York-based specialty finance company focused on lending to middle-market companies.
| Issuer: | TPG Specialty Lending, Inc.
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| Issue: | Convertible senior notes
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| Amount: | $100 million
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| Maturity: | Aug. 1, 2022
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| Coupon: | 4.5%
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| Initial conversion premium: | 15%
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| Conversion price: | $21.34
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| Conversion rate: | 46.8516
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| Net share settlement: | Yes
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| Contingent conversion: | 130%
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| Call: | Non-callable
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| Bookrunners: | BofA Merrill Lynch and Morgan Stanley & Co. LLC
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| Pricing date: | Jan. 26, after close
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| Settlement: | Feb. 1
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| Distribution: | Rule 144A
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| Stock symbol: | NYSE: TSLX
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| Stock price: | $18.56 at close on Jan. 26
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| Market capitalization: | $1.11 billion
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