BB&T Capital Markets Serves as a Co-Manager on KCAP Financial, Inc.’s Retail Notes Offering
BB&T Capital Markets’ Financial Services Group, serving as a co-manager, completed a retail notes “baby bond” offering for KCAP Financial, Inc., in the third quarter of 2017. The underwriters helped to raise $57,500,000 in gross proceeds for our client. The notes will trade under the symbol of KCAPL, pay an annual interest rate of 6.125%, and mature in 5 years.
KCAP intends to use the net proceeds from this transaction for general corporate purposes, which includes investing in portfolio companies in accordance its investment objectives and strategies, and possibly to redeem a portion of its outstanding indebtedness under its 7.375% notes maturing in 2019. Total gross proceeds includes the exercise of the underwriters’ 30-day over-allotment option.
About the Companies
KCAP Financial, Inc. is a publicly traded, internally managed business development company. Its middle market investment business originates, structures, finances and manages a portfolio of term loans, mezzanine investments and selected equity securities in middle market companies.
BB&T Capital Markets Financial Services Group has extensive experience providing community banks and thrifts, business development companies, and other specialty finance companies with a full range of public and private capital raising solutions, M&A advisory, fairness opinions and other strategic advisory services.
About BB&T Capital Markets
BB&T Capital Markets offers an integrated platform of equity and debt underwriting, M&A advisory, corporate banking, and sales and trading. Headquartered in Richmond, VA, with offices throughout the US, we have specific expertise within 10 distinct industry verticals including Automotive Aftermarket; Commercial & Industrial; Education; Energy; Financial Services; Food & Agribusiness; Healthcare; Logistics & Transportation Services; Real Estate; and Retail & Consumer. Our commitment to industry expertise, combined with our resources as one of the nation's strongest financial institutions, strategically positions BB&T Capital Markets to build lasting relationships and contribute measurably to the long-term success of our clients.