Sound Point Meridian Capital, Inc. Prices Initial Public Offering
June 13 2024 - 4:55PM
Business Wire
Sound Point Meridian Capital, Inc. (NYSE: SPMC) (the “Company”)
today announced the pricing of its initial public offering of
4,000,000 shares of common stock at a public offering price of
$20.00 per share, which will result in net proceeds to the Company
of approximately $79.7 million after payment of certain offering
expenses. In addition, the Company has granted the underwriters a
30-day option to purchase up to an additional 600,000 shares of
common stock to cover over-allotments, if any. Sound Point Meridian
Management Company, LLC, the Company’s investment adviser, or its
affiliates will pay the full amount of the sales load in connection
with this initial public offering and all of the Company’s
organizational expenses.
The Company intends to use the proceeds from the offering of its
common stock to acquire investments in accordance with its
investment objectives and strategies and for general working
capital purposes. On a pro forma basis, after giving effect to the
sale of 4,000,000 shares and the payment of certain offering
expenses as described above, and assuming no exercise of the
underwriters’ option to purchase additional shares, the Company’s
net asset value would be $400.1 million.
Shares of the Company’s common stock are expected to begin
trading on June 14, 2024 on the New York Stock Exchange under the
symbol “SPMC”. The offering is expected to close on June 17, 2024,
subject to customary closing conditions.
Oppenheimer & Co. Inc., B. Riley Securities, Inc., Janney
Montgomery Scott LLC and Piper Sandler & Co. are acting as
joint book-running managers for the offering. Clear Street LLC and
Wedbush Securities Inc. are acting as co-managers for the
offering.
Investors should consider the Company’s investment
objectives, risks, charges and expenses carefully before investing.
The preliminary prospectus, which has been filed with the
Securities and Exchange Commission (“SEC”), 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. The
preliminary prospectus and this press release are not offers to
sell these securities and are not soliciting an offer to buy these
securities in any state where such offer or sale is not
permitted.
A registration statement relating to these securities is on file
with and has been declared effective by the SEC. Copies of the
preliminary prospectus (and the final prospectus, when available)
may be obtained by writing Oppenheimer & Co. Inc., Attn:
Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New
York, NY 10004, by calling (212) 667-8055, or by sending an e-mail
to EquityProspectus@opco.com. Copies may also be obtained by
visiting EDGAR on the SEC’s website at www.sec.gov.
ABOUT THE COMPANY
The Company is an externally managed, non-diversified closed-end
management investment company. The Company’s investment objective
is to generate high current income, with a secondary objective to
generate capital appreciation, by investing primarily in
third-party collateralized loan obligation (“CLO”) equity and
mezzanine tranches of predominately U.S. dollar-denominated CLOs
backed by corporate leveraged loans issued primarily to U.S.
obligors. The Company is externally managed and advised by Sound
Point Meridian Management Company, LLC. The Company’s public
filings are available free of charge by writing to the Company at
Sound Point Meridian Capital, Inc., 375 Park Avenue, 34th Floor,
New York, NY 10152, Attention: Investor Relations, or by telephone
at (833) 217-6665.
ABOUT SOUND POINT MERIDIAN MANAGEMENT COMPANY
Sound Point Meridian Management Company, LLC (the “Adviser”) is
the Company’s external adviser and is majority owned by Sound Point
Capital Management, LP (“Sound Point Capital Management”), a
registered investment adviser. The Adviser’s CLO Investment team is
comprised of Stephen J. Ketchum, Ujjaval Desai, Matt Seifert, and
Dylan Leahy.
ABOUT SOUND POINT CAPITAL MANAGEMENT
Sound Point Capital Management is an alternative asset
management firm founded in 2008 with particular expertise in credit
strategies. Based in New York, with offices in London, Connecticut,
Florida and California, the firm manages money on behalf of
institutional investors, including top-tier pensions, foundations,
insurance companies, wealth management firms and family offices.
Sound Point Capital Management’s strategies span the spectrum of
liquid and illiquid credit alternatives and include funds and
managed accounts focused on leveraged loans, special situations,
distressed debt, structured credit, direct lending and commercial
real estate. Sound Point Capital Management currently manages $45+
billion of assets and was founded by Stephen J. Ketchum, who is the
controlling shareholder. Five principals of Stone Point Capital
LLC, as well as Blue Owl GP Stakes, a division of Blue Owl Capital
Inc. (NYSE: OWL), and Assured Guaranty Ltd, through one or more
subsidiaries, are strategic investors in Sound Point Capital
Management. For more information, please visit Sound Point Capital
Management’s website at www.soundpointcap.com.
FORWARD-LOOKING STATEMENTS
This press release may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. 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 risks and uncertainties. Actual results may
differ materially from those in the forward-looking statements as a
result of a number of factors, including those described in the
prospectus and the Company’s other filings with the SEC. The
Company undertakes no duty to update any forward-looking statement
made herein. All forward-looking statements speak only as of the
date of this press release.
Source: Sound Point Meridian Capital, Inc.
NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
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version on businesswire.com: https://www.businesswire.com/news/home/20240613145187/en/
Investor Relations: Garrett Edson – ICR; Julie Smith –
Sound Point Capital (833) 217-6665 ir@soundpointmeridiancap.com
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