Fifth Street Finance prices $78.4 million stock offering
By APFriday, January 22, 2010
Fifth Street Finance prices $78.4M stock offering
WHITE PLAINS, N.Y. — Fifth Street Finance Corp. on Friday priced a public stock offering of 7 million shares at $11.20 each.
The offering would gross $78.4 million for Fifth Street, which lends to and invests in small and mid-size businesses. Underwriters have an option to purchase an additional 1.05 million shares.
About $38 million of the net proceeds will be used to repay debt, the company said in a release. The remainder will be used to invest in small and mid-sized companies and for general corporate purposes.
Wells Fargo Securities LLC and UBS Investment Bank are managing offering. Stifel, Nicolaus & Co. and RBC Capital Markets are acting as co-lead managers. Other underwriters include Janney Montgomery Scott LLC, Morgan Keegan & Co., Macquarie Capital (USA) Inc., Gilford Securities Inc. and ING.
In morning trading, shares of Fifth Street Finance fell 51 cents, or 4.3 percent, to $11.23.
