Stellus Capital Investment Corp. has priced an underwritten public offering of 2,750,000 common shares at a public offering price of $14.10 per share.
The underwriters were granted a 30-day option to purchase up to 412,500 additional common shares. The offering is expected to close April 10, subject to customary closing conditions.
Stellus Capital expects to receive net proceeds of about $37.5 million from the offering, after deducting underwriting discounts and estimated offering expenses.
The company plans to use the net proceeds to capitalize its small-business investment company subsidiary, and it may also repay a portion of the amount outstanding under its credit facility. The company will also use the proceeds for general corporate purposes, including for working capital requirements and investment in debt or equity securities.
Raymond James & Associates Inc. and Keefe Bruyette & Woods are acting as joint book-running managers for the offering. Janney Montgomery Scott LLC and Oppenheimer & Co. Inc. are acting as co-managers.