Oxford Lane Capital (OXLC)–a Collateralized Loan Obligation owner, has announced a new baby bond offering.
OXLC has numerous term preferreds and baby bonds outstanding which can be seen here.
The preliminary prospectus can be read here.
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6/28/2024
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Anyone heard the potential pricing on this bond?
8.75% for those 6 year notes.
Really? I’d be surprised given some others in the sector did 5 year preferreds for 8% recently. Not complaining if true though!
The current crop of OXLC term preferreds and baby bonds top out at 7.125%. For a comparison, ECCF and EICC were issued earlier this year at 8% and are trading near par. If the new OXLC baby bond comes out at 8%, you can have Eagle Point at the same coupon.
GREENWICH, Conn., June 27, 2024 (GLOBE NEWSWIRE) — Oxford Lane Capital Corp. (OXLC) (NasdaqGS: OXLCM) (NasdaqGS: OXLCP) (NasdaqGS: OXLCL) (NasdaqGS: OXLCO) (NasdaqGS: OXLCZ) (NasdaqGS: OXLCN) (the “Company”) today announced that it has priced an underwritten public offering of $100,000,000 in aggregate principal amount of 8.75% unsecured notes due 2030. The notes will mature on June 30, 2030, and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after June 30, 2028. The notes will bear interest at a rate of 8.75% per year payable quarterly on March 31, June 30, September 30, and December 31 of each year, commencing September 30, 2024.
The offering is expected to close on July 8, 2024, subject to customary closing conditions. The Company has granted the underwriters an option to purchase up to an additional $15,000,000 in aggregate principal amount of notes. The notes are expected to be listed on the NASDAQ Global Select Market and to trade thereon within 30 days of the original issue date under the trading symbol “OXLCI”.
The Company expects to use the net proceeds from this offering to acquire investments in accordance with its investment objective and strategies and for general working capital purposes.