OFS Capital Corp. has launched an offering of 3.5 million common shares.
The company plans to grant the underwriters an option to buy up to an additional 525,000 shares. The company's investment adviser, OFS Capital Management LLC, will bear the sales load payable to the underwriters.
Based on a March 29 closing share price of $14.98 and assuming full exercise of the underwriters' option, S&P Global Market Intelligence calculates a gross offering size of about $60.3 million.
OFS Capital intends to use the net proceeds of the offering for new investments in portfolio companies and for general working capital purposes, including to temporarily repay debt, as well as to pay offering expenses, including advisory and administrative fees and expenses. The company may also pay other expenses such as due diligence expenses of potential new investments from the net proceeds.
Morgan Stanley & Co. LLC, UBS Investment Bank, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the book-running managers for the offering. Janney Montgomery Scott LLC and Ladenburg Thalmann & Co. are the lead managers. Aegis Capital Corp. and National Securities Corp. are the co-managers for the offering.