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Fidus Investment Corporation Announces Public Offering of Notes
EVANSTON, Ill., Oct. 10, 2019 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”) today announced the commencement of a
About this update from Fidus Investment Corporation
[{"type":"text","content":"EVANSTON, Ill., Oct. 10, 2019 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”) today announced the commencement of a registered public offering of unsecured notes due 2024 (the “Notes”), subject to market and other conditions. The Notes are expected to be listed, and trade, on The Nasdaq Global Select Market under the trading symbol “FDUSG” within 30 days from the original issue date. The interest rate and other terms of the Notes will be determined at the time of pricing of the offering.\n The Company intends to use the net proceeds from this offering to repay outstanding indebtedness under its existing credit facility with ING Capital LLC. However, the Company may re-borrow under its credit facility and use such borrowings to invest in lower middle-market companies in accordance with its investment objective and strategies and for working capital and general corporate purposes. As of October 9, 2019, the Company had $62.5 million of indebtedness outstanding under its credit facility. The credit facility matures on April 24, 2023, and borrowings under the credit facility bear interest, at the Company’s election, at a rate per annum equal to (a) 3.00% (or 2.75% if certain conditions are satisfied, including if (x) no equity interests are included in the borrowing base, (y) the contribution to the borrowing base of eligible portfolio investments that are performing first lien bank loans is greater than or equal to 35%, and (z) the contribution to the borrowing base of eligible portfolio investments that are performing first lien bank loans, performing last out loans, or performing second lien loans is greater than or equal to 60%) plus the one, two, three or six month LIBOR rate, as applicable, or (b) 2.00% (or 1.75% if the above conditions are satisfied) plus the highest of (A) a prime rate, (B) the Federal Funds rate plus 0.5%, (C) three month LIBOR plus 1.0%, and (D) zero. Keefe, Bruyette & Woods, A Stifel Company, is acting as sole bookrunner for the offering. BB&T Capital Markets, Janney Montgomery Scott, Ladenburg Thalmann, B. Riley FBR and Oppenheimer & Co. are acting as co-leads for the offering. National Securities Corporation is acting as the co-manager for the offering. Investors are advised to carefully consider the investment objectives, risks and charges and expenses of the C...