TPG Specialty Lending Inc. launched a public offering of its 4.50% convertible notes due Aug. 1, 2022.
The notes are unsecured and bear interest at a rate of 4.50% per year, payable semiannually. In certain circumstances, the notes will be convertible into cash, common shares or a combination of the two, depending on the company. TPG Specialty Lending will not have the right to redeem the notes prior to maturity.
The notes will have identical terms, be fungible with and be a part of a single series with the outstanding $115 million aggregate principal amount of the company's 4.50% convertible notes due 2022 issued in February 2017 in a private offering.
The company plans to grant underwriters an option to buy additional notes to cover overallotments, if any.
TPG Specialty Lending plans to use the net proceeds to pay down outstanding debt under its revolving credit facility. Through re-borrowing under the revolving credit facility, the company is also planning to make new investments.
J.P. Morgan and Goldman Sachs & Co. LLC are acting as joint book-running managers for the offering.