Fidus Investment (FDUS), a BDC is issuing a new $1,000 note due in 2026.
The company has announced the intention to redeem their $25/share notes due in 2023 (FDUSL) which carry a coupon of 5.875%.
There will be a minor loss for holders as the shares (bonds) were trading at $25.42 yesterday and are $25.00 premarket today. It is likely the company will pay a full quarter interest payment (although we don’t know the call date yet) which is about 37 cents/share so shares have a value in the $25.37 area.
The ‘use of proceeds’ statement can be read here (from the prospectus for the $1000 notes).
Another case of a decent $25 issue going down in flames to a $1,000 issue.
FDUSZ, with coupon 6.00%, might also be at call risk? 2/25/21 per QOL.
What do we expect as the % on the $1,000 notes?