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Re: MRCC to sell 5.75% Notes due 2023 Monroe Capital Corporation announced today that it has priced an underwritten public offering of $60.0 million in aggregate principal amount of its 5.75% notes due 2023 which will result in net proceeds to the Company of approximately $57.7 million (or approximately $66.4 million if the underwriters fully exercise the over allotment option described below) based on a public offering price of 100% of the aggregate principal amount of the Notes, after deducting payment of underwriting discounts and commissions and estimated offering expenses payable by the Company. The Notes will mature on October 31, 2023, and may be redeemed in whole or in part at any time, or from time to time, at the Company’s option on or after October 31, 2020. The Notes will bear interest at a rate of 5.75% per year, payable quarterly on January 31, April 30, July 31 and October 31 of each year, beginning on October 31, 2018. The Company has also granted the underwriters an option to purchase an additional $9.0 million aggregate principal amount of Notes to cover overallotments, if any, on or before October 5, 2018.
The offering is subject to customary closing conditions and is expected to close on September 12, 2018. The Company will submit an application for the Notes to be listed and trade on The Nasdaq Global Select Market under the trading symbol “MRCCL.” If approved for listing, the Company expects the Notes to begin trading within 30 days from the original issue date.
The Company has received a private rating of “A-” from Egan-Jones Ratings Company, an independent, unaffiliated rating agency. Context - other BDC bonds sales: On 8/16/18 New Mountain Finance Corp offered $100.0 million in aggregate principal amount of its 5.75% unsecured convertible notes due 2023. On 8/15/18 Gladstone Investment Corp offered 2,600,000 shares of its newly designated 6.375% Series E Cumulative Term Preferred Stock due 2025 sold as GAINL. On 7/05/18 New Mountain Finance Corp issued a private placement of $50.0 million of 5.36% Series 2018B Notes due June 28, 2023 . On 7/17/18 Whitehorse announced a private offering of $30.0 million aggregate principal amount of its 6.00% Senior Notes due 2023. On 6/28/18 CM Finance Inc priced a registered public offering of $30,000,000 of its 6.125% notes due 2023 - traded as CMFNL. On 6/27/18 Goldman Sachs BDC announced a reopening of an offering of $32.5 million aggregate principal amount of its 4.50% convertible notes due 2022. On 5/31/18 Prospect Capital Corporation announced a public offering of $50 million in 6.25% unsecured notes due 2028. On 4/24/18 Hercules Capital closed a registered public offering of $75 million aggregate principal amount of its 5.25% notes due 2028. On 2/02/18 Fidus Investment Corporation closed a registered public offering of $43.5 million aggregate principal amount of its 5.875% notes due 2023 - which trade as FDUSL. On 1/18/18 TSLX announced that it has priced an offering of $150.0 million of 4.50% Notes due 2023. On 11/22/17 PennantPark Floating Rate Capital Ltd. announced that it has priced an institutional offering in Israel of $138.7 million of its 3.83% Series A Notes. On 11/16/17 Main Street Capital Corporation announced that it has priced an underwritten public offering of $185.0 million in aggregate principal amount of 4.50% notes due 2022. On 11/13/2017 Solar Capital priced $75 million of a 4.50% bond that matures on 01/20/2023. On 8/07/17 Ares Capital announced that it has priced an underwritten public offering of $750.0 million in aggregate principal amount of 3.500% notes due 2023. On 7/17/17 BlackRock Capital Investment Corporation announced the pricing of $125 million in aggregate principal amount of senior unsecured 5.00% Convertible Notes due 2022. On 4/06/17 Prospect Capital Corporation announced the pricing of $225 million in aggregate principal amount of senior unsecured 4.95% Convertible Notes Due 2022. On 1/26/17 TPG Specialty Lending announced that it has agreed to sell to initial purchasers in a private offering $100 million aggregate principal amount of its 4.50% Convertible Senior Notes due 2022. On 1/24/17 Ares Capital Corporation announced that it has agreed to sell to initial purchasers in a private offering $350 million aggregate principal amount of its 3.75% Convertible Notes due 2022. Context part two - The Monroe and New Mountain notes are priced at the same yield. (1) Their equities sell at close to the same yield. Their equities sell at close to the same (2) Price/NAV ratios. (3) Their PWAYs are close to equal. They have close to the same (4) three year NAV trend and (5) three year NII trend. |
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