Stellus Capital Prices IPO, Acquires Initial Portfolio Assets
Stellus Capital Investment announced the pricing of its initial public offering of 8 million shares of common stock at a public offering price of $15.00 per share, raising $120 million in gross proceeds. The company has granted the underwriters an option to purchase up to an additional 1.2 million shares of its common stock.
Immediately prior to pricing of the offering, the company acquired its initial portfolio of assets for $165.2 million in cash and $29.2 million in shares of the company’s common stock, or $194.4 million in total (excluding accrued interest of approximately $2.3 million).
The company intends to use the net proceeds from the offering together with borrowings under the company’s credit facility to pay the outstanding balance on the bridge loan it incurred in order to acquire its initial portfolio.
Raymond James and Stifel, Nicolaus & Company are serving as joint book-running managers. Robert W. Baird & Co. and Oppenheimer & Co. are serving as co-lead managers. Janney Montgomery Scott LLC and Sterne, Agee & Leach are serving as co-managers. The closing of the transaction is subject to customary closing conditions. The shares are expected to be delivered on November 13, 2012.
Stellus Capital Investment is an externally-managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940.