Fifth Street Finance sells 13.25M shares for $9.95 each

Fifth Street (FSC +0.4%) raised gross proceeds of about $131.8M, and the underwriters retain an option to buy another 2M shares at $9.95. The current quote is $9.86.

Comments (2)
  • uechi_ryu_dad
    , contributor
    Comments (33) | Send Message
    How is it possible to sell over 13 million shares at $9.95, when at the same my quote on TD Ameritrade says it's selling for $9.85 per share? Who's paying such a premium for the shares?
    15 Jul 2014, 11:18 PM Reply Like
  • techy46
    , contributor
    Comments (11500) | Send Message
    The stock was at $10.05 before going ex-dividend on $0.09 so $9.96 was a fair market price. However the market dummies started figuring it was a dilutive event and drove the stock down around $9.70. However, FSC is a BDC and it's business is raising capital by equity offering or loan rate borrowing and loaning it a favorable rates like LIBOR + 6%. So I bought another several thousand shares around $9.70 before it popped back to $9.84. It's still a good value and is paying 10-11% depending on your entry point. It pays monthly dividends and just increased them by 10% effective next fall.
    15 Jul 2014, 11:51 PM Reply Like
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