By Stephanie N. Rotondo
Phoenix, Sept. 5 – Oxford Lane Capital Corp. sold $3.125 million of its 7.5% series 2023 preferred stock to a single investor, the company said in a regulatory filing on Friday.
No placement agent or underwriter was used in the deal, but the company is paying a fee of $61,250 to Ladenburg Thalmann & Co. Inc. for financial advisory services.
The $25-par shares were sold at $24.50 per share, a slight premium to Friday’s closing share price of $24.40.
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 shares if they fall below an asset coverage ratio of at least 200%.
Proceeds will be used for investments in accordance with the company’s investment objectives and strategies.
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
|
| Amount: | $3.125 million, or 125,000 shares
|
| Maturity: | June 30, 2023
|
| Dividend: | 7.5%
|
| Price: | $24.50 per share
|
| Par: | $25.00 per share
|
| 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%
|
| Pricing date: | Sept. 5
|
| Stock symbol: | Nasdaq: OXLCO
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| Stock price: | $24.40 as of Friday’s close
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