CM Finance Inc priced a registered public offering of $30 million of its 6.125% notes due July 1, 2023.
The notes may be redeemed in whole or in part at any time, or from time to time, at the company's option on or after July 1, 2020.They will bear interest at a rate of 6.125% per year, payable quarterly on Jan. 1, April 1, July 1 and Oct. 1 of each year, starting Oct. 1, 2018.
The underwriters were granted an option to buy an additional $4.5 million of notes to cover any overallotments on or before July 27.
The offering is expected to result in net proceeds of roughly $28.9 million, or about $33.2 million if the underwriters fully exercise their overallotment option, based on a public offering price of 100% of the aggregate principal amount of the notes.
CM Finance plans to use a portion of the net proceeds to repay outstanding debt under its existing revolving financing facility with UBS AG, London Branch. Any remaining net proceeds will be used to fund investments in middle-market companies, and for other general corporate purposes.
The company has applied to list the notes on the Nasdaq Global Select Market under the symbol CMFNL. The notes will start trading within 30 days from the original issue date if approved for listing.
Keefe Bruyette & Woods and Ladenburg Thalmann & Co. Inc. are serving as joint book runners. Janney Montgomery Scott LLC is acting as co-lead manager, while BB&T Capital Markets and Oppenheimer & Co. Inc. are serving as co-managers for the offering, which is anticipated to close July 2.