Fifth Street Finance warns 1st-quarter profit may fall short of expectations
By APFriday, January 22, 2010
Fifth Street Finance says 1Q profit may fall short
WHITE PLAINS, N.Y. — Fifth Street Finance Corp. on Friday issued a first-quarter profit estimate that could fall short of Wall Street expectations.
The business financing company estimated net investment income of 21 cents per share to 24 cents per share for the final three months of the year. Analysts polled by Thomson Reuters expect a profit of 24 cents per share, on average.
The company, which invests in small and mid-size businesses, also said it plans to raise $78.4 million through a public stock offering of 7 million shares.
In addition, Fifth Street said it received a nonbinding term sheet from a lender for a potential additional credit line of up to $100 million.
Shares of Fifth Street slipped 54 cents, or 4.6 percent, to $11.20 in midday trading.
