Business development company Fidus Investment Corp (FDUS) has announced the new issuance of some baby bonds with a maturity date in 2024.
The notes will have an early redemption optionally available starting in 2021.
The company currently has 2 other baby bonds outstanding which can be seen here.
As we started to do yesterday we want to make sure no one misunderstands where these new securities fall in the ‘capital stack’. These securities will rank “pari passu” (equal to) the other baby bonds the company has outstanding, all of which is unsecured, but will be junior to any secured debt that is currently outstanding (or any issued in the future).
The bottom line is these notes will be senior to common stock–and equal to other unsecured debt. All secured debt is senior.
mcg was right on this new issue on the Reader Initiated Alerts page.