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NEW YORK - Sound Point Meridian Capital, Inc. (NYSE:SPMC) announced Monday it has commenced an underwritten public offering of its Series B Preferred Shares, which have received a ’BBB’ rating from Egan-Jones Ratings Company. According to InvestingPro data, the company currently offers an impressive 16.81% dividend yield, though its overall financial health score is rated as weak.
The closed-end fund, which primarily invests in equity and junior debt tranches of collateralized loan obligations, plans to list the new shares on the New York Stock Exchange under the ticker symbol SPME within 30 days of issuance. With a market capitalization of $362.69 million and trailing twelve-month revenue of $84.32 million, SPMC has established itself in the specialized CLO investment space.
Financial terms of the offering will be determined through negotiations between the company and underwriters. The company will grant underwriters a 30-day option to purchase additional shares on the same terms. For deeper insights into SPMC’s valuation metrics and additional financial analysis, InvestingPro subscribers have access to over 30 exclusive financial indicators and professional tips.
Oppenheimer & Co. Inc., B. Riley Securities, Inc., Janney Montgomery Scott LLC, Lucid Capital Markets, LLC, and Piper Sandler & Co. are serving as joint bookrunners for the offering. Several firms including A.G.P./Alliance Global Partners LLC and Clear Street LLC are acting as co-managers.
Sound Point Meridian Capital is externally managed by Sound Point Meridian Management Company, LLC. The fund’s primary investment objective is to generate high current income, with capital appreciation as a secondary goal, by investing mainly in CLO equity and mezzanine tranches denominated in U.S. dollars.
A registration statement for the securities has been filed with and declared effective by the Securities and Exchange Commission. The offering will be made only through a prospectus, according to the company’s press release statement.
In other recent news, Sound Point Meridian Capital has disclosed its management’s unaudited estimate of the net asset value (NAV) per share of common stock as of March 31, 2025, ranging between $18.73 and $18.81. The company also provided preliminary figures for the first quarter, estimating net investment income to be between $0.63 and $0.67 per share of common stock. Additionally, the estimated range of realized losses for the same period is between ($0.10) and ($0.06) per share. These estimates, detailed in a recent SEC filing, offer insights into the company’s performance and financial position at the end of the first quarter. Such disclosures are closely monitored by investors as they provide early indications of a company’s operating results. The report, signed by CEO Ujjaval Desai, confirms the accuracy of the information provided. This filing serves as a vital source of information for investors, analysts, and other stakeholders interested in Sound Point Meridian Capital’s financial health.
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