Fidus Investment Prices Baby Bonds

BDC Fidus Investment (NASDAQ:FDUS) has priced its new issue of baby bonds with a fairly skimpy coupon of 6%.

This coupon is not surprising considering they have another issue of baby bonds outstanding with a coupon of 5.875% which trades around $25–but just the same the risk/reward would imply it is not rewarding us enough and as such we have no interest.

These baby bonds have an early call date in 2021 and will mature in 2024.

The pricing term sheet can be found here.

The interest paid on the baby bonds will be NON QDI. The issue is not rated.

The notes will trade on the NASDAQ under the ticker symbol FDUSZ when in begins to trade within 30 days (likely 7-10 days). There will be no OTC Grey Market trading on this debt issue.

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