Fifth Street Finance Launches New Stock Issue

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.

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  • Report this Comment On September 20, 2013, at 10:34 AM, techy46 wrote:

    Amusing that the stock sinks to $10.13 PS when the offering is at $10.31 PS. Increased float will not dilute existing shares since $160 million will either reduce debt or increase invested capital.

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