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TCP Capital shares slip after IPO

April 5, 2012
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SANTA MONICA, Calif.—Shares of TCP Capital Corp. slipped Wednesday after the investment company's initial public offering.

TCP Capital said its initial public offering of 5.75 million shares priced at $14.75 a share, raising about $84.8 million before expenses.

Shares of the Santa Monica, Calif., company at one point were down more than 4 percent to $14.11 in early trading Wednedayt as the broader market also declined. They later recovered to close down 20 cents, or 1.4 percent, at $14.55.

The company will use proceeds to pay down debt and make new investments. TCP Capital invests primarily in the debt of "middle-market" companies, which are worth between $100 million and $1.5 billion.

The company is essentially an investment arm of Tennenbaum Capital Partners LLC, a privately held investment firm that has invested roughly $10 billion in 200 companies since it was founded in 1999.

TCP Capital does not have any of its own employees, and makes its investments under the guidance of Tennenbaum Capital, according to its prospectus.

At the end of 2011 it held debt and equity positions in 41 companies worth about $379 million.

The company has granted the underwriters a 30-day option to buy up to 862,500 additional shares to cover excess demand. Deutsche Bank Securities Inc. and Stifel, Nicolaus & Co. are managing the offering along with Oppenheimer & Co. The offering is expected to close Tuesday.

The stock listed on the NASDAQ Global Select Market under the symbol "TCPC."

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