Blackrock Kelso Capital (BKCC) (BKCC)

[Tech Master]

BlackRock Kelso Capital plans stock offering

BlackRock Kelso Capital plans stock offering to pay off debt, invest in companies

Monday October 18, 2010, 5:36 pm EDT
NEW YORK (AP) -- BlackRock Kelso Capital Corp. said Monday it plans to sell 6 million shares of common stock in a public offering.

The firm, which provides loans and debt securities to middle-market companies, said it will use the net proceeds to pay off debt and make investments in portfolio companies, which include Water Pik Inc. and Sentry Security Systems.

The date of the offering and the share price haven't been set. Citi, Bank of America Merrill Lynch, Credit Suisse and UBS Investment Bank are joint bookrunning managers for the offering.

BlackRock Kelso shares fell 80 cents, or 6 percent, to $11.88 in after-hours trading, having closed earlier up 17 cents at $12.69. Stock offerings increase the number of a company's shares outstanding, diluting current shareholders' stakes.

The company currently has about 65.5 million shares outstanding.