Business Development Corp. of America has priced an offering of $60 million of 5.375% senior unsecured notes due May 30, 2023.
The notes were sold to qualified institutional buyers and to institutional accredited investors. The offering is expected to close May 16.
Interest on the notes is payable semiannually on May 30 and Nov. 30 each year, beginning Nov. 30. The notes include a covenant requiring the company to comply with the asset coverage requirements of the Investment Company Act of 1940. After certain change-of-control events, holders of the notes can require the company to repurchase the notes at a price equal to 100% of the principal amount, plus accrued but unpaid interest to the repurchase date. The notes will be issued in denominations of $1,000 and have no sinking fund provisions.
The company is expecting net proceeds of about $58.7 million. It plans to use the proceeds to repay outstanding debt, to make investments in portfolio companies and for general corporate purposes.
Sandler O'Neill + Partners LP acted as initial purchaser for the offering.