Alcentra Capital fell in morning trading on Wednesday after the specialty finance company priced an underwritten primary offering of 808,161 shares of its common stock and a concurrent underwritten secondary offering of 1.7 million shares on behalf of Alcentra NY, the company’s investment adviser, and another selling stockholder at a public offering price of $13.68 per share, 2.5% below the share closing price on Tuesday.
Shares fell 3.4% to $13.56 at 9:40 a.m. in New York. In connection with the proposed offering, the company seeks to grant the underwriters for the offering an option to purchase up to an additional 375,000 shares of the company’s common stock. The company will not receive any proceeds from the sale of shares of common stock sold in the secondary offering. The company will use the net proceeds from the sale of shares of common stock to repay outstanding debt borrowed under its credit facility.