THL Credit to invest in debt of middle-market companies

By Toni Weeks

San Diego, Sept. 19 - THL Credit, Inc. plans to repay $46.1 million of debt under its revolving credit facility with the proceeds from its planned public offering of common stock announced Wednesday. Proceeds will also be used for general corporate purposes, including working capital.

The company said it intends to reborrow under its revolver to invest in debt and equity securities of middle-market companies.

The company is planning to sell 5.3 million shares of common stock via joint bookrunners Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and RBC Capital Markets, LLC. The underwriters will have a 30-day over-allotment option for an additional 795,000 shares. THL Credit's stock closed at $14.43 (Nasdaq: TCRD) on Tuesday.

The revolver currently bears interest at 3.75%, according to a 497 filing with the Securities and Exchange Commission.

Boston-based THL Credit is an externally managed, non-diversified, closed-end management investment company. Its investment objective is to generate current income and capital appreciation through investments in privately negotiated debt and equity securities of middle-market companies.

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