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Monroe Capital Delivers Shares to Underwriters

The business development company closes IPO for 5 million common shares, raising $75M

Monroe Capital Corp. (Nasdaq: MRCC), a business development company, has closed its initial public offering of 5 million shares of common stock with a price tag of $15.00 per share.

The announcement comes on the heels of U.S. stock trading being canceled for two days as a means of protecting securities workers due to the devastation of Hurricane Sandy.

In late-afternoon trading on Oct. 31, Monroe Capital was priced at $15.05 per share, down .09 cents from the Oct. 30 close. The firm, an affiliate of Chicago middle-market investment firm, began trading on Oct. 25, raising about $75 million in gross proceeds. Today’s closing marks the company's delivering of shares to the underwriters who bought them.

As a public entity,the company expects to provide senior, unitranche, junior secured debt, unsecured subordinated financing and equity financing to middle-market companies in the U.S. and Canada.

Getting to this point for Monroe Capital Corp. was not an easy task. The company first filed to go public in March 2011, but the offering stalled as a downgrade of the U.S. government’s credit rating and Europe’s sovereign debt crisis.

During that time, the company had also gotten rid of its bookrunners, replacing a slate of bulge bracket investment banks with regional firms, including Robert W. Baird & Co. Inc., William Blair & Co. LLC and Janney Montgomery Scott LLC.

For more IPO coverage from Mergers & Acquisitions, see "Apollo-Backed Realogy Trades Up 27 Percent on IPO" and "Private Equity Perspective: Will Apollo's Successful Realogy IPO Bode Well for Other PE-Backed Debuts?." Also, watch Editor-in-chief Mary Kathleen Flynn's interview with Monroe Capital managing director Thomas Aronson at themiddlemarket.com/video

 

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