TPG readies BDC listing

TPG Specialty Lending will go public this week on the NYSE in a listing which could raise up to $119m.

TPG’s business development company, TPG Specialty lending, will go public later this week on the New York Stock Exchange, the firm said in a statement.  

The BDC, which is one of the largest in the US in terms of assets under management, is expected to issue 7 million shares priced between $16 and $17 each, raised up to $119 million in proceeds before costs, according to the statement and an SEC filing. A further 1.05 million shares are on option if demand is sufficient.

In addition to the offering, TPG will sell $50 million of its common stock to existing investors including TSL Advisers, its investment adviser and administrator, through a separate private placement at the same price as the IPO.

TSL will use proceeds from both offerings to pay down debt under a revolving credit facility, it said.

JPMorgan, BofA Merrill Lynch, Goldmanc Sachs, Wells Fargo and Barclays are acting as joint bookrunners on the IPO. TPG Capital BD, Janney Montgomery Scott and JMP Securities are acting as co-managers.

The vehicle was launched in 2010 and began investing in mid-2011. It provides financing to mid-market companies in the US. By 31 December last year, it had more than $1 billion in 27 outstanding investments and booked interest income of $90.4 million. Most of its investments are floating rate in nature, according to TPG, which the firm says acts as a hedge against inflation.