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 (NYSE: MS ) , Goldman Sachs (NYSE: GS ) , JPMorgan Chase (NYSE: JPM ) unit J.P. Morgan, Barclays (NYSE: BCS ) , and the Securities units of Deutsche Bank (NYSE: DB ) and Wells Fargo (NYSE: WFC ) . 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.