Oxford Lane Capital Corp. priced an underwritten public offering of 2.5 million shares of its 6.75% series 2024 term preferred shares at $25 per share, raising $62.5 million in gross proceeds.
The company also granted the underwriters an option to purchase up to 375,000 additional preferred shares to cover any overallotments.
The offering is subject to closing conditions and the shares are expected to be delivered June 14. The company has applied to list the preferred stock on Nasdaq and expects trading to commence within 30 days after June 14 under the symbol OXLCM.
Oxford Lane intends to use the net proceeds to redeem all of its outstanding 8.125% series 2024 term preferred shares, which are redeemable starting June 30. Approximately $50.5 million of these preferred shares were outstanding as of June 2. Any remaining net proceeds will be used for acquiring investments, general working capital purposes and/or to redeem a portion of Oxford Lane's outstanding 7.50% series 2023 term preferred shares.
Ladenburg Thalmann & Co. Inc. is acting as the lead book-running manager for the offering. BB&T Capital Markets and William Blair & Co. LLC are acting as the joint book-running managers, and National Securities Corp. and Wedbush Securities Inc. are acting as co-managers.