Monroe BDC raises $36.4m in fresh share listing

Investment manager, Monroe Capital, has also struck its second healthcare financing deal.

Business development company Monroe Capital Corporation priced an underwritten public offering of 2.45 million shares of its common stock at $14.85 a share, the Nasdaq BDC announced on Wednesday (15 April).

The offering, which raised $36.4 million in new equity, will be used to repay indebtedness and invest in portfolio companies, as well as other general corporate purposes including payments of operating expenses, according to a statement by the firm. Robert W. Baird, William Blair & Company, Janney Montgomery Scott and Oppenheimer & Co. were joint book-running managers on the offering. 

Monroe BDC is a subsidiary of Chicago-based mid-market lender, Monroe Capital, which provides senior and junior debt and equity co-investments to mid-market companies in the US and Canada.

In March, the BDC reported net income increased by 21 percent in the last quarter of 2014. The portfolio had a fair value of $233.5 million across 40 companies and an average yield of 11 percent, as of 31 December 2014, according to an earnings statement. The BDC is made up mostly of first lien loans and focuses on providing lower mid-market financing.

Monroe Capital also announced that it provided a $36.8 million senior credit facility to support the recapitalisation and growth of Little River Healthcare, a rural-based healthcare provider in Central Texas. The deal is Monroe’s second healthcare industry financing. Little River Healthcare consists of two hospitals, five outpatient diagnostic imaging centres and nine outpatient clinics.