Harvest Capital Credit Corporation Prices Public Offering of Notes
August 21 2017 - 6:15PM
Business Wire
Harvest Capital Credit Corporation (NASDAQ: HCAP) (the
“Company”) announced today the pricing of its public
offering of $25.0 million in aggregate principal amount of its
6.125% notes due 2022 (the “Notes”). The Notes will mature
on September 15, 2022, 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
September 15, 2019. The Notes will bear interest at a rate of
6.125% per year payable quarterly on March 15, June 15, September
15 and December 15 of each year, beginning September 15, 2017. The
Company has also granted the underwriters a 30-day option to
purchase up to an additional $3.75 million in aggregate principal
amount of Notes to cover over-allotments, if any.
The closing of the transaction is subject to customary closing
conditions, and the Notes are expected to be delivered on or about
August 24, 2017. The Company intends to apply to list the Notes on
the NASDAQ Global Market, and if the application is approved,
expects trading in the Notes to begin within 30 days from the
original issue date.
Keefe, Bruyette & Woods, A Stifel Company, is
acting as sole book-running manager of this offering. Janney
Montgomery Scott LLC and William Blair & Company L.L.C. are
acting as co-lead managers for the offering. BB&T Capital
Markets is acting as a co-manager for the offering.
The Company intends to use all of the net proceeds from this
offering to redeem outstanding indebtedness under its 7.00%
fixed-rate notes due 2020 (the “2020 Notes”), which
currently amounts to $27.5 million plus accrued and unpaid
interest, and, to the extent the underwriters’ overallotment option
is exercised and the proceeds from this offering exceed the
redemption price of the 2020 Notes, then to repay borrowings under
its revolving credit facility.
Investors are advised to carefully consider the investment
objective, risks, charges and expenses of the Company before
investing. The offering is being made pursuant to the Company’s
registration statement on Form N-2, previously filed with, and
declared effective by, the Securities and Exchange Commission (the
“SEC”). The preliminary prospectus dated August 21, 2017, which has
been filed with the SEC as part of the effective registration
statement, contains this and other information about the Company
and should be read carefully before investing.
The information in the preliminary prospectus and this press
release is not complete and may be changed. This press release is
not an offer to sell any securities of the Company and is not
soliciting an offer to buy such securities in any state where such
offer and sale is not permitted.
The offering may be made only by means of a preliminary
prospectus, copies of which may be obtained from: Keefe, Bruyette
& Woods, Inc., Attn: Debt Capital Markets, 787 Seventh Avenue,
Fourth Floor, New York, NY 10019 (telephone number
1-800-966-1559).
About Harvest Capital Credit Corporation
Harvest Capital Credit Corporation (NASDAQ: HCAP) provides
customized financing solutions to privately held small and
mid-sized companies in the U.S., generally targeting companies with
annual revenues of less than $100 million and annual EBITDA of less
than $15 million. The Company’s investment objective is to generate
both current income and capital appreciation primarily by making
direct investments in the form of subordinated debt, senior debt
and, to a lesser extent, minority equity investments. Harvest
Capital Credit Corporation is externally managed and has elected to
be treated as a business development company under the Investment
Company Act of 1940.
Forward-Looking Statements
This press release contains certain forward-looking statements,
including statements with regard to Harvest Capital Credit
Corporation's securities offering and the anticipated use of the
net proceeds of the offering. Words such as “believes,” “expects,”
“projects,” “anticipates,” and “future” or similar expressions are
intended to identify forward-looking statements. These
forward-looking statements are subject to the inherent
uncertainties in predicting future results and conditions and no
assurance can be given that the securities offering discussed above
will be consummated on the terms described or at all. Completion of
the securities offering and the terms thereof are subject to
numerous factors, many of which are beyond the control of Harvest
Capital Credit Corporation, including, without limitation, market
conditions, changes in interest rates, failure of customary closing
conditions and other matters set forth in Harvest Capital Credit
Corporation’s prospectus. Harvest Capital Credit Corporation
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20170821005920/en/
Investor & Media Relations ContactsHarvest Capital
Credit CorporationRichard Buckanavage, (212) 906-3592President
& Chief Executive Officerrbuckanavage@harvestcaps.comorCraig
Kitchin, (678) 392-3150Chief Financial
Officerckitchin@harvestcaps.com
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