By Wendy Van Sickle
Columbus, Ohio, June 7 – BlackRock Capital Investment Corp. priced $125 million of 5% senior unsecured convertible notes (/BBB-/BBB-) due June 15, 2022 with an initial conversion premium of 10% on Wednesday, the company said in a press release.
Price talk was for a yield of 4.875% to 5% and an initial conversion premium of 10%.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, BMO Capital Markets, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and HSBC Securities are the joint bookrunners on the registered deal.
There is an $18.75 million over-allotment option.
Conversions will be settled in cash or stock, or a combination of the two, at the company’s option. The conversion rate is 118.2173 shares per each $1,000 of notes, or $8.46 a share.
The convertible notes are non-callable until Dec. 15, 2021. After that, the issue can be called at par plus accrued interest and a make-whole premium.
Proceeds will be used to repay certain outstanding debt, which may include repaying outstanding borrowings under a credit facility, and for other general corporate purposes, which include investing in portfolio companies in accordance with BlackRock’s investment objective and strategies.
BlackRock is a New York-based business development company.
| Issuer: | BlackRock Capital Investment Corp.
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| Securities: | Senior unsecured convertible notes
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| Amount: | $125 million
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| Greenshoe: | $18.75 million
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| Maturity: | June 15, 2022
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| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, BMO Capital Markets, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and HSBC Securities
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| Coupon: | 5%
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| Conversion premium: | 10%
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| Conversion price: | $8.46
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| Conversion rate: | 118.2173 shares
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| Call: | Non-callable until Dec. 15, 2021, then callable at par plus accrued interest and a make-whole premium
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| Pricing date: | June 7
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| Settlement date: | June 13
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| Talk: | 4.875% to 5% yield, up 10%
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| Stock symbol: | Nasdaq: BKCC
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| Stock price: | $7.69 as of June 7 close
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| Market capitalization: | $558.67 million
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