March 20 TPG Specialty Lending (TSL), private
equity firm TPG Capital LP's business development company, said
it priced its initial public offering at $16 per share, the low
end of its planned range.
The company, launched by TPG in 2011, sold 7 million shares
in the offering, raising $112 million, TSL said in a statement
TSL, which first filed to go public in February, had
expected to sell the shares at between $16 and $17
Since its launch in 2011, TSL has raised $1.5 billion from
investors, including a $117.1 million commitment from its
parent. It will have an equity valuation of about $830 million
at the IPO price.
Business development companies (BDCs) are pools of capital
that invest in different types of debt of small and
middle-market companies. BDCs often trade on public markets and
pay out at least 90 percent of their annual profits as dividends
to avoid corporate taxation under provisions passed by Congress
San Francisco-based TSL plans to use proceeds from the
offering to pay down debt and invest in portfolio companies.
Its shares are slated to begin trading on Friday on the New
York Stock Exchange under the symbol "TSLX".
The company has reported gross internal rate of return of
17.6 percent on investments it has exited from inception through
the end of 2013. Net investment income for 2013 more than
doubled from 2012 to $57.5 million.
JP Morgan, Bank of America Merrill Lynch and Goldman Sachs &
Co were lead underwriters to the offering.
(Reporting by Aman Shah in Bangalore; Editing by Lisa Shumaker)