BDC (business development company), Fidus Investment Corporation is selling a new baby bond with a short maturity in 2023.
The coupon on the new note is set at 5.875% which again is too low, given that we are staring at probable interest rate hikes ahead. A quick review of Fidus (NASDAQ:FDUS) financials shows that the company is a solid BDC with good level of net income and we would be a buyer at a higher current yield.
The company has no other baby bonds or preferred stock outstanding.
The new issue will trade under the ticker of FDUSL, but likely will not trade for a week or so. There will not be any OTC grey market trading prior to permanent market trading.