By Rebecca Melvin
New York, Aug. 31 – TCP Capital Corp. priced an upsized $125 million of 5.5-year convertible senior notes ahead of the market open on Wednesday at par to yield 4.625% with an initial conversion premium of 10%, according to a news release.
The Rule 144A deal was initially talked at $100 million in size. Pricing of the notes came at the midpoint of 4.5% to 4.75% talk for the premium and at the fixed 10% initial conversion premium.
Raymond James & Associates Inc. was the bookrunner for the deal for which there is an additional $15 million of notes to cover over-allotments.
The company intends to use the proceeds to repay debt under its revolving credit facilities, which will increase the funds available under the revolver to make additional investments in portfolio companies in accordance with its investment objective, and for other general corporate purposes.
Santa Monica, Calif.-based TCP Capital is a specialty finance company focused on credit lending to middle-market companies and small businesses.
| Issuer: | TCP Capital Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $125 million, upsized from $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | 5.5 years
|
| Bookrunner: | Raymond James & Associates Inc.
|
| Coupon: | 4.625%
|
| Price: | Par of $1,000
|
| Yield: | 4.625%
|
| Call: | Non-callable
|
| Conversion premium: | 10%
|
| Conversion price: | $18.35 per share
|
| Conversion rate: | 54.5019 shares
|
| Pricing date: | Aug. 31
|
| Settlement date: | Sept. 6
|
| Distribution: | Rule 144A
|
| Price talk: | 4.5%-4.75%, up 10%
|
| Stock symbol: | Nasdaq: TCPC
|
| Stock reference price: | $16.68 as of close on Aug. 30
|
| Market capitalization: | $851.36 million
|
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