IPO

TCP Capital shares sink nearly 4 percent after IPO

AP News
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Posted: Apr 04, 2012 10:55 AM
TCP Capital shares sink nearly 4 percent after IPO

Shares of TCP Capital Corp. fell nearly 4 percent Wednesday after the investment company's initial public offering, as investors backed off the company's asking price for its stock.

TCP Capital said its initial public offering of 5.75 million shares priced at $14.75 a share, raising about $84.8 million before expenses.

Shares of the Santa Monica, Calif., company slipped 54 cents to $14.21 in morning trading as the broader markets also declined.

The company will use proceeds to pay down debt and make new investments. TCP Capital invests primarily in the debt of "middle-market" companies, which are worth between $100 million and $1.5 billion.

The company is essentially an investment arm of Tennenbaum Capital Partners LLC, a privately held investment firm that has invested roughly $10 billion in 200 companies since it was founded in 1999.

TCP Capital does not have any of its own employees, and makes its investments under the guidance of Tennenbaum Capital, according to its prospectus.

At the end of 2011 it held debt and equity positions in 41 companies worth about $379 million.

The company has granted the underwriters a 30-day option to buy up to 862,500 additional shares to cover excess demand. Deutsche Bank Securities Inc. and Stifel, Nicolaus & Co. are managing the offering along with Oppenheimer & Co. The offering is expected to close Tuesday.

The stock listed on the NASDAQ Global Select Market under the symbol "TCPC."