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.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • 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.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2646440, ~/Articles/ArticleHandler.aspx, 8/30/2014 6:25:38 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement