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Bain Capital Specialty Finance to make stock market debut
Posted on Wednesday, 10 October 2018 14:03
The specialty finance operations of private equity firm Bain Capital has filed registration documents with the US Securities and Exchange Commission to launch an initial public offering.
A flotation has been scheduled for the New York Stock Exchange under the ticker symbol BCSF; however, at this time it is not clear when the listing is expected to take place and closing would be dependent on market conditions.
Bain Capital Specialty Finance (BCSF) also kept the number of shares expected to be sold quiet and instead just announced a placeholder of USD 100.00 million to be raised.
This figure is normally used to calculate registration fees and the final amount raised in the offering is usually different.
While certain terms are yet to be to disclosed to the public, the use of proceeds was said loud and clear.
BCSF plans to use the cash raised to repay a portion of its outstanding debt, with anything left over likely to make investments in relation to its objectives and strategies, as well as for general corporate purposes.
Underwriters Bank of America Merrill Lynch, Goldman Sachs, Morgan Stanley and Credit Suisse, among others, have been appointed to run the flotation.
BCSF if a speciality finance business focused on lending to middle market companies.
In the period between 13th October 2016 and 30th June 2018, the group invested USD 1.37 billion in aggregate principal amount of debt and equity investments.
The company is focused on capitalising on opportunities within its senior direct lending strategy, targeting firms with between USD 10.00 million and USD 150.00 million in annual earnings before interest, taxes, depreciation and amortisation (EBITDA).
According to Zephyr, the M&A database published by Bureau van Dijk, stock market listings of companies operating in the finance and insurance sector has seen 313 deals announced worldwide since the start of 2018 to date.
The largest of these involves Deutsche Bank’s German asset manager DWS Group raising EUR 1.45 billion in its March flotation.
Other firms which have agreed to go public this year include Thailand Future Fund, Brazil’s Hapvida Participacoes e Investimentos and Australia-based L1 Long Short Fund.
© Zephus Ltd