Triangle Capital to issue stock

The BDC will sell 6.3m new shares along with a warrant for more than 900,000 extra common shares.

Triangle Capital Corporation announced plans to issue more stock, providing the business development company (BDC) with more money to invest in lower-middle market companies.

In a Monday (25 July) statement, the Raleigh, North Carolina-based firm said it plans to issue 6.3 million new shares of common stock and to give the transaction's underwriters a 30-day option to buy 937,500 extra shares.

 The company intends to put the proceeds back into lower-middle market companies through its investments, which typically range from $5 -35 million and include acquisition financings, leveraged buyouts, management buyouts, recapitalizations, growth financing and employee stock ownership programs.

 Despite the tough environment for other BDCs currently, Triangle lists a NAV at 1.31x, higher than many others in the sector. Several BDCs are either already sold or on the block, as PDI has previously reported. Both Credit Suisse and Fifth Street are shopping their assets, with Credit Suisse using its own Financial Institutions Group in the sale while Fifth Street has engaged Morgan Stanley. Ares Capital recently acquired American Capital.