Goldman Sachs BDC Inc. priced its offering of $40 million in aggregate principal amount of 4.50% convertible notes due 2022.
The convertible notes are unsecured and bear interest at a rate of 4.50% annually, which is payable semiannually. In certain events, the notes will be convertible to cash, common shares or a combination of both, at an initial conversion rate of 40.8397 common shares per $1,000 principal amount of convertible notes. This is equivalent to an initial conversion price of about $24.49 per common share.
The notes will mature April 1, 2022. The company will not have the right to redeem the convertible notes prior to maturity.
The convertible notes will have identical terms, be fungible with, and be part of a single series of convertible debt securities with the outstanding $115 million aggregate principal amount of the company's 4.50% convertible notes due 2022 issued in September 2016.
The convertible notes are expected to be delivered on or about July 2.
Goldman Sachs BDC expects net proceeds of about $38.6 million, which will be used to pay down debt under the company's revolving credit facility.
SunTrust Robinson Humphrey, Bank of America Merrill Lynch, Morgan Stanley and Goldman Sachs & Co. LLC are serving as joint book-running managers for the offering.