Fidus Investment prices additional $100 million of 6.750% notes

EVANSTON, Ill. - Fidus Investment Corporation (NASDAQ:FDUS), a $716 million market cap business development company with an impressive 11.15% dividend yield, announced it has priced an underwritten public offering of an additional $100 million aggregate principal amount of 6.750% notes due 2030.

The notes represent a further issuance of the company’s existing 6.750% notes due 2030 originally issued on March 19, 2025. Upon completion, the total outstanding principal amount of these notes will be $200 million. According to InvestingPro data, the company maintains strong financial health with a current ratio of 3.0, indicating robust liquidity to meet its obligations.

The newly issued notes will have the same terms as the existing notes, including the March 19, 2030 maturity date and interest rate of 6.750% per year, payable semi-annually on March 19 and September 19. The notes may be redeemed in whole or in part at the company’s option at any time prior to September 19, 2029 at par plus a make-whole premium, and at par thereafter.

Fidus plans to use the net proceeds to redeem in full its outstanding 4.75% notes due 2026. The offering is expected to close on October 3, 2025, subject to customary closing conditions.

Raymond James & Associates, Inc. and ING Financial Markets LLC are serving as book-runners for the offering. Keefe, Bruyette & Woods, A Stifel Company and Oppenheimer & Co. Inc. are acting as lead managers, while B. Riley Securities, Inc. and Clear Street LLC are co-managers.

Fidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies with revenues between $10 million and $150 million. The company is externally managed and has elected to be treated as a business development company under the Investment Company Act of 1940. InvestingPro analysis reveals the company has maintained dividend payments for 15 consecutive years, with revenue growing at 8.16% over the last twelve months. For deeper insights into FDUS’s performance and valuation metrics, including exclusive ProTips and comprehensive analysis, check out the Pro Research Report available on InvestingPro.

This information is based on a press release statement from the company.

In other recent news, Fidus Investment Corp reported its second-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share of $0.53, compared to the forecasted $0.52. The company also exceeded revenue projections, reporting $40 million against an expected $37.42 million. Despite challenging merger and acquisition market conditions, Fidus successfully monetized co-investments and realized $6 million from the sale of an equity investment. Keefe, Bruyette & Woods raised its price target for Fidus Investment to $21.50 from $20.00, maintaining a Market Perform rating, citing a strong quarter with net investment income exceeding estimates. Additionally, Clear Street initiated coverage of Fidus Investment with a Buy rating and a $21.00 price target, highlighting the company’s strong track record as a disciplined lower middle market lender. These developments reflect Fidus’s resilient performance and strategic financial management.

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