Monroe Capital Corp. priced a public offering of $60 million in aggregate principal amount of its 5.75% notes due Oct. 31, 2023.
They will bear an interest rate of 5.75% per year, payable quarterly starting Oct. 31.
The notes may be redeemed in whole, or in part, at the company's option on or after Oct. 31, 2020.
Underwriters have the option to purchase an additional $9.0 million aggregate principal amount of notes on or before Oct. 5 to cover overallotments, if any.
Monroe Capital intends to use the net proceeds — which are expected to be approximately $57.7 million, or approximately $66.4 million if the underwriters' option is exercised — to invest in portfolio companies and for other general corporate purposes. Part of the proceeds will also be used to repay outstanding debt under its revolving credit facility. As of Aug. 31, the company had $114.4 million of outstanding debt under the facility.
The company will apply for the notes to be listed on the Nasdaq Global Select Market under the trading symbol MRCCL. If approved, the notes should begin trading within 30 days from the original issue date.
The offering is expected to close Sept. 12.
Ladenburg Thalmann & Co. Inc., BB&T Capital Markets and Janney Montgomery Scott LLC are acting as book-running managers for the offering. B. Riley FBR Inc., Oppenheimer & Co. and William Blair are acting as lead managers. National Securities Corp. and Wedbush Securities Inc. are acting as co-managers.