CHARLOTTE, N.C.--(BUSINESS WIRE)--
Capitala Finance Corp. (NasdaqGS:CPTA) (the "Company") today announced
that it is offering, subject to market and other conditions, unsecured
convertible notes due 2022 (the "Notes") in an underwritten public
The Notes are expected to be listed on the NASDAQ Capital Market and to
trade thereon within 30 days of the original issue date. The Notes will
mature on May 31, 2022, unless previously converted or repurchased in
accordance with their terms. The Notes will be convertible into shares
of the Company's common stock at a conversion rate to be determined.
Interest on the Notes will be payable on February 28, May 31, August 31
and November 30 of each year, beginning on August 31, 2017. The interest
rate, the conversion rate and other terms of the Notes will be
determined at the time of pricing of the offering.
The Company expects to use a portion of the net proceeds from this
offering, together with the net proceeds from the offering of the
Company's 6.00% fixed-rate notes due 2022 that was completed on May 16,
2017, to redeem all of the outstanding indebtedness under its 7.125%
fixed-rate notes due 2021 (the "2014 Notes"), which currently amounts to
approximately $113.4 million plus accrued interest. Any net proceeds
from this offering in excess of the outstanding indebtedness of the 2014
Notes will be used to repay borrowings under the Company's senior
secured revolving credit agreement.
Keefe, Bruyette & Woods, A Stifel Company, is serving as the
sole book-running manager.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the securities in this offering or any
other securities nor will there be any sale of these securities or any
other securities referred to in this press release in any state or
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to the registration or qualification under the securities laws of
such state or jurisdiction.
A shelf registration statement relating to these securities is on
file with and has been declared effective by the Securities and Exchange
Commission. The offering may be made only by means of a prospectus and a
related prospectus supplement, copies of which may be obtained, when
available, from any of the following investment banks: Keefe, Bruyette &
Woods, Inc., 787 Seventh Avenue, Fourth Floor, New York, NY 10019
(telephone number 1-800-966-1559). The
preliminary prospectus supplement, dated May 17, 2017, and accompanying
prospectus, dated May 1, 2017, each of which has been filed with the
Securities and Exchange Commission, contain a description of these
matters and other important information about the Company
and should be read carefully before investing. Investors are advised to
carefully consider the investment objectives, risks and charges and
expenses of the Company before investing.
About Capitala Finance Corp.
Capitala Finance Corp. is a business development company that invests
primarily in first and second liens, subordinated debt and, to a lesser
extent, equity securities issued by lower and traditional middle-market
companies. The Company is managed by Capitala Investment Advisors, LLC.
Forward Looking Statements
This press release contains forward-looking statements subject to the
inherent uncertainties in predicting future results and conditions,
including statements with regard to the Company's securities offering
and the anticipated use of the net proceeds of the offering. Any
statements that are not statements of historical fact (including
statements containing the words "believes," "plans," "anticipates,"
"expects," "estimates" and similar expressions) should also be
considered to be forward-looking statements. Certain factors could cause
actual results and conditions to differ materially from those projected
in these forward-looking statements. These factors are identified from
time to time in our filings with the Securities and Exchange Commission.
We undertake no obligation to update such statements to reflect
subsequent events, except as may be required by law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170522005371/en/
Capitala Finance Corp.
Stephen Arnall, Chief Financial Officer
Source: Capitala Finance Corp.
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