CM Finance Inc Prices Public Offering of $30,000,000 6.125% Notes Due 2023
June 27 2018 - 5:53PM
CM Finance Inc (the “Company”) (Nasdaq:CMFN) announced today that
it has priced a registered public offering of $30,000,000 aggregate
principal amount of its 6.125% notes due 2023 (the “Notes”), which
will result in net proceeds to the Company of approximately $28.9
million (or approximately $33.2 million if the underwriters fully
exercise the over-allotment option described below) based on a
public offering price of 100% of the aggregate principal amount of
the Notes, after deducting payment of underwriting discounts and
commissions and estimated offering expenses payable by the Company.
The Notes will mature on July 1, 2023 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 July 1, 2020. The Notes will bear
interest at a rate of 6.125% per year, payable quarterly on January
1, April 1, July 1 and October 1 of each year, beginning on October
1, 2018. The Company has also granted the underwriters
an option to purchase an additional $4.5 million aggregate
principal amount of Notes to cover over-allotments, if any, on or
before July 27, 2018.
The offering is subject to customary closing conditions and is
expected to close on July 2, 2018. The Company has submitted an
application for the Notes to be listed and trade 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 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
26, 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 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
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 constitute “forward-looking
statements”, which relate to future events or our future
operations, performance or financial condition. Forward-looking
statements include statements regarding our intentions related to
the offering discussed in this press release, including the use of
proceeds from the offering. These statements are not guarantees of
future performance, condition or results and involve a number of
risks and uncertainties. Actual results and outcomes may differ
materially from those anticipated in the forward-looking statements
as a result of a variety of factors, including those described from
time to time in our filings with the Securities and Exchange
Commission or factors that are beyond our control. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements made herein. All forward-looking
statements speak only as of the time of this press release.
CONTACT: CM Finance Inc
Investor Relations
Email:
investorrelations@cmipllc.com
Phone:
212-257-5199
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