Fifth Street Finance (NASDAQ: FSC) is decamping to Wall Street to scare up some capital. The company announced it is floating 15.5 million shares of its common stock in an underwritten public offering, priced at $10.31 per share. Additionally, the issue's underwriters have been granted a 30-day purchase option for up to an additional 2.325 million shares.
Fifth Street said it plans to use its share of the estimated $159.8 million gross proceeds of the offering to repay debt, noting that, "however, through reborrowing under its credit facilities, it intends to make investments in small and mid-sized companies."
The lead book-running managers of the issue are Morgan Stanley, Goldman Sachs, JPMorgan Chase unit J.P. Morgan, Barclays, and the Securities units of Deutsche Bank and Wells Fargo. The offering is expected to close "on or about" September 26.
Currently, Fifth Street Finance has slightly over 121 million shares outstanding, and its stock trades at $10.20 per share.