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TPG Specialty Lending prices convertible debt offering

TPG Specialty Lending Inc. priced a public offering of $50 million of its 4.50% convertible notes due 2022.

The notes will have identical terms, be fungible with and be a part of a single series with the outstanding $115 million of the company's 4.50% convertible notes due 2022 issued in February 2017.

The company also granted the underwriters an option to purchase up to an additional $7.5 million of the notes to cover overallotments, if any.

The offering is subject to closing conditions. The notes are expected to be delivered and paid for June 19.

The notes are unsecured, and bear an annual interest rate of 4.50%, payable semiannually. The notes will be convertible into cash, TPG Specialty common shares or a combination of cash and shares. The conversion rate on the notes is 47.51 shares of common stock per $1,000 principal amount of the notes, equivalent to a conversion price of approximately $21.05 per common share. TPG Specialty will not have the right to redeem the notes prior to maturity.

The notes will mature Aug. 1, 2022, unless repurchased or converted earlier.

TPG Specialty expects to use the net proceeds of the offering to pay down outstanding debt under its revolving credit facility.

J.P. Morgan and Goldman Sachs & Co. LLC are acting as joint book-running managers for the offering.

In connection with the offering, the company also intends to enter into interest rate swaps.