Boston, MA 10/03/2013 (wallstreetpr) – White Plains, New York based Fifth Street Finance Corp. (NASDAQ: FSC) had made a public announcement on September 19, about its second public offering of 15.5 million shares of its common stock with a sticker price of $10.31 per share. It was looking at mopping up a total of $15.98 million from the transaction before deduction of expenses and tax. The sticker price was close to 3.7% less than the prior 4 week high price of $10.7 per share. The underwriters have an in built option to purchase an additional 2.32 million shares in lieu of potential over subscription.
The value of the shares slid close to 2% during trading on September 19. Since then the stock is struggling to maintain steady momentum and is trading in the red. It has shed close to half a percentage point in the past week and by close to 1% of its market value over the past 180 days.
The company plans to use part of the funds raised from the IPO to service outstanding debt. It hopes to reinvest part of the proceeds into chosen lines of businesses by acquiring smaller companies. It intends to leverage its existing credit facilities to gap finance any such new acquisition.
The $1.21 billion market cap company post the secondary public offering has a total of 118 million shares outstanding with close to 38% of the stock held by institutional investors. At close of business October 2 price of $10.26, the shares are trading just 4.7% below their 52 week high valuations. Analysts have a consensus target of $12 for the share by end of the calendar year.
The firm has clocked a impressive 41% jump in sales in comparison to previous quarter and has recorded a total sales of $207 million in a trailing 12 month basis.
