TCP Capital greenshoe ups 5.5-year 5.25% convertibles to $108 million

By Toni Weeks

San Luis Obispo, Calif., June 30 – Underwriters for TCP Capital Corp.’s offering of 5.5-year convertible senior notes partially exercised their over-allotment option, adding $8 million of additional notes for total proceeds of $108 million, according to an N-2 filing with the Securities and Exchange Commission.

The company priced $100 million of the notes with a $15 million greenshoe option on June 11 at par to yield 5.25% with an initial conversion premium of 12.5%.

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.

The notes are non-callable and 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.

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