Fidus Investment Corporation Prices Offering of $125 Million of 3.50% Notes Due 2026
Fidus Investment Corporation (NASDAQ: FDUS) announced the pricing of a public offering of $125 million in 3.50% notes due 2026. The notes, maturing on November 15, 2026, may be redeemed at par plus a make-whole premium. Interest payments will be made semi-annually starting May 15, 2022. Proceeds will be used to redeem outstanding 6.000% and 5.375% notes due 2024 and to repay part of its revolving credit facility, currently at $40 million. The offering's close is subject to customary conditions, with expected delivery on October 8, 2021.
- Successful pricing of $125 million notes indicating strong market demand.
- Lower interest rate of 3.50% compared to existing notes, which may reduce interest expenses.
- Proceeds will strengthen financial position by redeeming higher-rate notes.
- Outstanding debt under the revolving credit facility remains at $40 million post-offering.
- Market uncertainties and associated risks could impact future performance.
EVANSTON, Ill., Oct. 01, 2021 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (NASDAQ: FDUS) (“Fidus” or the “Company”) today announced that it priced a public offering of
Raymond James & Associates, Inc. and Keefe, Bruyette & Woods, A Stifel Company, are acting as book-runners for this offering. Oppenheimer & Co. Inc., B. Riley Securities, Inc., Hovde Group, LLC, ING Financial Markets LLC and Ladenburg Thalmann & Co. Inc. are acting as lead managers for the offering.
The closing of the transaction is subject to customary closing conditions and the Notes are expected to be delivered on or about October 8, 2021.
The Company intends to use the net proceeds from this offering to redeem all of its outstanding
Investors are advised to consider carefully the investment objective, risks and charges and expenses of the Company before investing. The preliminary prospectus supplement dated October 1, 2021 and the accompanying prospectus dated May 3, 2021, each of which has been filed with the Securities and Exchange Commission (the “SEC”), contain a description of these matters and other important information about the Company and should be read carefully before investing.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of the Notes referred to in this press release, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction. A registration statement (File No. 333-253525) relating to the Notes was filed and has been declared effective by the SEC.
This offering is being made solely by means of a written prospectus forming part of the effective registration statement and a related preliminary prospectus supplement, which may be obtained for free by visiting the SEC’s website at www.sec.gov or from Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, email: prospectus@raymondjames.com or by calling 800-248-8863.
ABOUT FIDUS INVESTMENT CORPORATION
Fidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between
Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007.
FORWARD-LOOKING STATEMENTS
Statements included herein contain certain “forward-looking statements” within the meaning of the federal securities laws, including statements with regard to the Company’s Notes offering and the anticipated use of the net proceeds of the offering. Forward-looking statements can be identified by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward-looking statements are based on our beliefs, assumptions and expectations of future events and our future performance, taking into account all information currently available to us. These statements are not guarantees of future events, performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including but not limited to the impact of the COVID-19 pandemic and the pandemic's impact on the U.S. and global economy, as well as those described from time to time in our filings with the SEC. Any forward-looking statement speaks only as of the date on which it is made. The Company undertakes no duty to update any forward-looking statements made herein, whether as a result of new information, future developments or otherwise, except as required by law.
| Company Contact: | Investor Relations Contact: |
| Shelby E. Sherard | Jody Burfening |
| Chief Financial Officer | LHA |
| (847) 859-3938 | (212) 838-3777 |
| ssherard@fidusinv.com | jburfening@lhai.com |
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