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ACG New York Women of Leadership - Entrepreneur Series
Barbara Bradley Baekgaard, founder of Vera Bradley (Nasdaq: VRA), is the latest in a series of entrepreneurs highlighted at ACG New York Women of Leadership events. Photo credit: Robert Blumenfeld

Watercooler

GTCR, Hormel, the Riverside Co-CEOs and Others Win M&A Mid-Market Awards
Amid a slow and challenging year for dealmaking, the winners of Mergers & Acquisitions’ 7th Annual M&A Mid-Market Awards outpaced the competition to grow, innovate and lead the middle market

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Financial Services Companies Heat Up M&A Market
Speakers from Flexpoint Ford, Genstar Capital, Baird Capital, Madison Capital Funding and Katten Muchin Rosenman discuss the various factors playing a role in M&A activity within the financial services space

Expert's Corner

Pursuing Pharma Manufacturing
The fragmented pharmaceutical manufacturing industry provides plenty of opportunities for private equity investors, says JLL Partners founder Paul Levy

Today's Transactions:
Stellus Capital Marks Third Recent BDC IPO

Stellus and OSF Follow in Monroe Capital’s Footsteps

Stellus Capital Investment Corp. (NYSE: SCM) has begun its first day of trading, with a public offering of 8 million shares at $15 per share.

Midday trading remains flat. The shares are expected to be delivered on Nov. 13.

This is the third IPO of a business development company (BDC) in recent weeks. The announcement comes the same day as OFS Capital Corp.'s (Nasdaq: OFS) initial public offering of 6.67 million shares of common stock, also at $15.00 per share, and more than a week after Monroe Capital Corp. (Nasdaq: MRCC) closed its IPO of 5 million shares of common stock.

Like OFS and Monroe, Stellus invests in middle-market companies by infusing them with debt and equity. The Houston firm reported roughly $120 million in gross proceeds, which it plans to use for paying the outstanding balance on a bridge loan, according to a filing with the U.S. Securities and Exchange Commission

The firm, which spun out of New York investment adviser D.E. Shaw in January, acquired an asset portfolio for $165.2 million in cash and $29.3 million in stock.

Raymond James and Stifel Nicolaus & Co. Inc. are serving as joint book-running managers, while investment advisers Robert W. Baird & Co. Inc. and Oppenheimer & Co. Inc. are serving as co-lead managers. Janney Montgomery Scott LLC and Sterne Agee & Leach Inc. are serving as co-managers.

Meanwhile, Rolling Meadows, Ill.-based OFS raised about $100 million in gross proceeds, with plans to deliver the shares by Nov. 14. Monroe, an affiliate of Chicago middle-market investment firm Monroe Capital LLC, raised about $75 million in proceeds.

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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