CM Finance Inc Commences Offering of Notes
June 27 2018 - 9:00AM
CM Finance Inc (the “Company”) (Nasdaq:CMFN) announced today that
it has commenced an underwritten offering of unsecured notes due
2023 (the “Notes”), subject to market and other conditions. The
Company has submitted an application for the Notes to be listed and
traded on the NASDAQ Global Select Market under the trading symbol
“CMFNL”. If approved for listing, the Company expects the Notes to
begin trading within 30 days from the original issue date. The
interest rate and other terms of the Notes will be determined at
the time of pricing of the offering. In addition, the Company
intends to grant the underwriters for the offering a 30-day option
to purchase additional Notes representing 15% of the offered amount
of Notes from the Company to cover over-allotments, if any.
The Company intends to use a portion of the net proceeds from
the offering to repay outstanding indebtedness under its existing
revolving financing facility with UBS AG, London Branch (the “2017
UBS Revolving Financing”). However, the Company
may re-borrow under the 2017 UBS Revolving Financing and
use such borrowings to invest in middle market companies in
accordance with its investment objective and strategies and for
working capital and general corporate purposes. As of June
22, 2018, there were $17.8 million in borrowings outstanding under
the 2017 UBS Revolving Financing. Borrowings under the 2017
UBS Revolving Financing, which matures on December 5, 2019,
generally bear interest at a rate per annum equal to one-month
LIBOR plus 3.55%. The Company intends to use any remaining net
proceeds from this offering to fund investments in middle market
companies in accordance with our investment objective and for other
general corporate purposes.
Keefe, Bruyette & Woods, A Stifel Company, and Ladenburg
Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann
Financial Services Inc. (NYSEMKT: LTS), are acting as joint
bookrunners for the offering. Janney Montgomery Scott LLC is acting
as co-lead manager for the offering.
BB&T Capital Markets, a division of
BB&T Securities, LLC, and Oppenheimer & Co.
Inc. are acting as co-managers for the offering.
Investors are advised to carefully consider the
investment objective, risks and charges and expenses of the Company
before investing. The preliminary prospectus supplement, dated June
27, 2018, and accompanying prospectus, dated June 1, 2018, each of
which has been filed with the U.S. Securities and Exchange
Commission, contain a description of these matters and other
important information about the Company and should be read
carefully before investing.
The information in the preliminary prospectus supplement, the
accompanying prospectus and this press release is not complete and
may be changed. This press release does not constitute an offer to
sell or the solicitation of an offer to buy the securities in this
offering or any other securities nor will there be any sale of
these securities or any other securities referred to in this press
release in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such state or
jurisdiction.
A shelf registration statement relating to these
securities is on file with and has been declared effective by the
U.S. Securities and Exchange Commission. The offering may be made
only by means of a prospectus and a related prospectus supplement,
copies of which may be obtained, when available, from Keefe,
Bruyette & Woods, Inc., Attn: Capital Markets, 787 Seventh
Avenue, 4th Floor, New York, NY 10019 (telephone number:
1-800-966-1559).
About CM Finance Inc
The Company is an externally-managed, closed-end,
non-diversified management investment company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940. The Company’s investment objective is to
maximize the total return to its stockholders in the form of
current income and capital appreciation through debt and related
equity investments by targeting investment opportunities with
favorable risk-adjusted returns. The Company seeks to invest
primarily in middle-market companies that have annual revenues of
at least $50mm and earnings before interest, taxes, depreciation
and amortization of at least $15mm. The Company’s investment
activities are managed by its investment adviser, CM Investment
Partners LLC. To learn more about CM Finance Inc, please visit
www.cmfn-inc.com.
Forward-Looking Statements
Statements included herein may contain "forward-looking
statements," which relate to future performance or financial
condition. Statements other than statements of historical facts
included in this press release may constitute forward-looking
statements and are not guarantees of future performance or results
and involve a number of assumptions, risks and uncertainties, which
change over time. Actual results may differ materially from those
anticipated in any forward-looking statements as a result of a
number of factors, including those described from time to time in
filings by the Company with the Securities and Exchange Commission.
The Company undertakes no duty to update any forward-looking
statement made herein, except as required by law. All
forward-looking statements speak only as of the date of this press
release.
CONTACT:
CM Finance Inc Investor RelationsEmail:
investorrelations@cmipllc.com Phone: 212-257-5199
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