By Rebecca Melvin
New York, June 12 – TCP Capital Corp. priced $100 million of 5.5-year convertible senior notes after the market close Wednesday at par to yield 5.25% with an initial conversion premium of 12.5%, according to a syndicate source.
Pricing of the Rule 144A deal came at the cheap end of talk, which was for a 4.75% to 5.25% coupon and a 12.5% to 17.5% premium.
Citigroup Global Markets Inc., BofA Merrill Lynch and Deutsche Bank Securities Inc. were the joint bookrunners of the deal, for which there is a $15 million greenshoe.
The notes are non-callable, and they have net share settlement.
Proceeds are to repay amounts outstanding under the company’s revolving credit facilities and to make investments in portfolio companies and for other general corporate purposes, including payment of operating expenses.
Santa Monica, Calif.-based TCP Capital is a specialty finance company.
| Issuer: | TCP Capital Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | Dec. 15, 2019
|
| Bookrunners: | Citigroup Global Markets Inc., BofA Merrill Lynch, Deutsche Bank Securities Inc.
|
| Coupon: | 5.25%
|
| Price: | Par
|
| Yield: | 5.25%
|
| Conversion premium: | 12.5%
|
| Conversion price: | $19.64
|
| Conversion ratio: | 50.9100 shares
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Net share settlement: | Yes
|
| Takeover protection: | Yes
|
| Price talk: | 4.75%-5.25%, up 12.5%-17.5%
|
| Pricing date: | June 11
|
| Settlement date: | June 17
|
| Stock symbol: | Nasdaq: TCPC
|
| Stock reference price: | $17.46
|
| Distribution: | Rule 144A
|
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