Capitala Finance to invest in mezzanine debt via stock proceeds

By Toni Weeks

San Luis Obispo, Calif., April 9 – Capitala Finance Corp. said it plans to sell 3.5 million shares with a greenshoe for an additional 525,000 shares in a public offering, according to a 497 filing with the Securities and Exchange Commission.

The company plans to sell the shares (Nasdaq: CPTA) at $18.32 per share, a 3.58% discount to the closing share price of $19.00 on April 6.

The externally managed, non-diversified, closed-end management investment company seeks to generate current income and capital appreciation through debt and equity investments.

Capitala invests primarily in traditional mezzanine, senior subordinated and unitranche debt, senior and second-lien loans and, to a lesser extent, equity securities issued by lower and traditional middle-market companies. Investments are made in a diverse range of industries with a focus on business services, manufacturing, consumer and retail, energy, and health-care industries.

UBS Securities LLC, Jefferies LLC, Keefe, Bruyette & Woods, Inc. and BB&T Capital Markets, LLC are the joint bookrunning managers. JMP Securities LLC, Oppenheimer & Co. Inc., Wunderlich Securities, Inc., Stephens Inc., Ladenburg Thalmann & Co. Inc. and Sandler O’Neill + Partners, LP are the co-managers.

Joseph B. Alala III, Hunt Broyhill, Stephen A. Arnall and John McGlinn lead the investment team with assistance from Christopher B. Norton, Michael S. Marr, Chuck Cox, Richard Wheelahan and Adam Richeson.

The sales load will be 3%. Including a base management fee of 3.59%, total annual expenses are expected to be 13.89%.

The company offers customized financing to business owners, management teams and financial sponsors for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.

Charlotte, N.C.-based Capital Investment Advisors, LLC serves as the investment management.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.