Sierra Income announces initial offering of $1.5 billion of shares

By Toni Weeks

San Diego, Feb. 21 - Sierra Income Corp., a newly organized closed-end management investment company, has registered shares of its common stock in an N-1A filing with the Securities and Exchange Commission.

The fund's investment objective is to generate current income and, to a lesser extent, long-term capital appreciation by investing primarily in the debt of privately owned U.S. companies. Investments will focus on senior secured debt, second-lien debt and, to a lesser extent, subordinated debt.

The initial offering will be for a maximum of 150 million shares offered at $10 apiece on a continuous, best-efforts basis for proceeds of $1.5 billion. No shares will be sold unless at least 200,000 shares are sold to persons not affiliated with the fund or the adviser during the first year.

If the minimum level is reached, the company will also complete a $1 million private placement of its common stock to members of the fund's board of directors and people affiliated with the adviser.

SIC Advisors LLC will serve as the investment adviser. Seth Taube, Robert Comizio, Andrew Fentress, Brook Taube, Joseph Schmuckler and Jeff Tonkel, principals of SIC, comprise the team that will monitor the portfolio.

Each $10 share will carry a sales load of 9.75%, which includes up to 7% for selling commissions and up to 2.75% for dealer manager fees.

SIC Advisors has offices in New York and San Francisco.

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