NexPoint Capital, Inc. BDC Increases Offering Price
December 13, 2017 | James Sprow | Blue Vault
On December 13, 2017, NexPoint Capital, Inc. increased its public offering price from $10.48 per share to $10.52 per share. The increase in the public offering price was effective as of the Company’s December 13, 2017, closing and first applied to subscriptions received from December 6, 2017, through December 12, 2017.
NexPoint Capital, Inc. is an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended. The Company’s investment objective is to generate current income and capital appreciation primarily through investments in middle-market healthcare companies, middle-market companies in non-healthcare sectors, syndicated floating rate debt of large public and nonpublic companies and collateralized loan obligations.
The Company was formed on September 30, 2013, and formally commenced operations on September 2, 2014. As of September 30, the BDC reported total assets of $91.65 million. Of the Company’s $70.0 million in fair value of invested assets by industry as of September 30, 2017, 73.1% were in the healthcare sector. NexPoint Advisors, L.P. is the external advisor. In aggregate through September 30, 2017, the Adviser controls 2,117,895 total shares, including reinvestment of dividends, for a net amount of approximately $20.2 million.
On December 8, 2017, the board of directors of the Company declared a cash distribution of $0.013846 per share of the Company’s common stock, to be paid on January 31, 2018, to the stockholders of record on January 2, 2018, January 8, 2018, January 16, 2018, January 22, 2018 and January 29, 2018. Based on the Company’s recent public offering price of $10.48 per share, the distribution represents an annualized rate of approximately 6.9%. Based on the new public offering price of $10.52, the distribution represents an annualized rate of approximately 6.85%.
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