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EVANSTON, Ill. - Fidus Investment Corporation (NASDAQ: FDUS), a provider of customized debt and equity financing solutions currently trading at a P/E ratio of 8.89 and offering a substantial 10.73% dividend yield, has announced the pricing of a $100 million public offering of 6.750% notes due 2030. According to InvestingPro, the company has maintained dividend payments for 15 consecutive years, making it an interesting option for income-focused investors. The notes, set to mature on March 19, 2030, will pay interest semi-annually and may be redeemed at the company’s discretion before September 19, 2029, at par plus a make-whole premium, or at par after that date.
The offering, expected to close on March 19, 2025, will see Raymond James & Associates, Inc. as the book-runner, with several other financial institutions participating as passive book-runners and co-managers. Fidus Investment plans to use the net proceeds from this offering to repay part of its outstanding borrowings under its senior secured revolving credit facility, although it retains the option to re-borrow under the same facility for investments and corporate purposes.
As of March 11, 2025, Fidus had $125 million of outstanding indebtedness on its credit facility. The company, which focuses on investing in lower middle-market companies in the U.S., aims to generate both current income and capital appreciation through its investments. The strategy appears to be working, with revenue growth of 12.33% in the last twelve months. For deeper insights into FDUS’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.
Investors are encouraged to review the investment objectives, risks, charges, and expenses of the company carefully before investing. The preliminary prospectus supplement and the accompanying prospectus contain important information about Fidus Investment and are available through the SEC’s website or directly from Raymond James & Associates.
This press release does not constitute an offer to sell the notes, and the offering will be made solely by means of the written prospectus included in the effective registration statement. The information in this article is based on a press release statement from Fidus Investment Corporation.
In other recent news, Fidus Investment Corp reported its fourth-quarter 2024 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.54, slightly above the forecast of $0.5364, and reported revenue of $37.46 million, exceeding the anticipated $36.92 million. The portfolio fair value remained stable at $1.1 billion, with Fidus originating $120.3 million in new investments during the quarter. Additionally, Fidus announced a dividend of $0.54 per share for the first quarter of 2025. In strategic moves, the company sold two investments in early 2025, expected to yield approximately $11 million in realized gains. Keefe, Bruyette & Woods maintained a Market Perform rating for Fidus, recognizing its growth potential despite a slight credit decline due to an isolated event. The firm highlighted Fidus’s low leverage ratio of 0.7x, indicating significant capacity for future expansion. Despite minor setbacks, Fidus’s recent financial activities demonstrate resilience and a strategic approach to growth, as noted by Keefe, Bruyette & Woods.
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