Fifth Street Finance Floats New Stock Issue

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Fifth Street Finance is about to expand its capital base. The company has launched a fresh issue of 13.5 million shares of its common stock in an underwritten public offering. It also intends to grant its underwriters a purchase option for an additional 2.025 million shares.

Fifth Street said it plans to use the proceeds of the issue to retire debt drawn from its credit facilities and, through reborrowing under those facilities, to make investments in small and mid-sized businesses.

The lead book-running managers for the issue are Morgan Stanley, Barclays, Goldman Sachs, and the Securities units of Wells Fargo and Deutsche Bank.

The article Fifth Street Finance Floats New Stock Issue originally appeared on Fool.com.

Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs and Wells Fargo and owns shares of Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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