Fort Worth is set to gain its latest publicly traded company, and it’s got a familiar name but an unfamiliar business.
TPG Specialty Lending, part of the big TPG Capital private equity firm, intends to go public this week. In its filing last week with the Securities and Exchange Commission, TPG Specialty Lending said it expects to issue 7 million shares between $16 and $17 a share, raising up to $119 million before expenses, plus another million shares if the demand is there. It will trade on the New York Stock Exchange with the ticker TSLX.
The company, formed in July 2010, provides financing to midsize, highly leveraged companies, according to the filing. It said it had just over $1 billion in outstanding investments at year’s end and reported $90.4 million in interest income on those investments in 27 portfolio companies.
TPG Specialty Lending is a Business Development Co., which can be either publicly held or private, but in any event is regulated by the SEC. BDCs must pay out at least 90 percent of their income as dividends to shareholders and have become more popular in today’s low-interest-rate environment.
According to the SEC filing, TPG Specialty Lending last year declared a stock dividend of $1.56 a share. At an issue price of $17, that would be a return of 9.2 percent.
According to a count in November by Dealogic, there had been 15 IPOs for BDCs in the past three years.
BDCs fill a financing niche for companies, generally beyond the start-up stage, that might not find ready bank loans. According to TPG Specialty Lending’s SEC filing, the average yield on its investments as of Dec. 31 was 10.4 percent at fair-market value, compared to today’s prime rate of 3.25 percent. TPG Specialty Lending also holds some equity securities in eligible portfolio companies.
TPG Specialty Lending says it has co-chief executive officers: Michael Fishman and Joshua Easterly. Besides its Fort Worth headquarters, it lists offices in San Francisco, New York and London.
TPG Capital was founded in 1992 by former Robert M. Bass advisers, including David Bonderman and James Coulter. It has become one of the world’s largest private-equity firms, with $59 billion in managed assets as of Dec. 31.
Several big private-equity firms, including KKR and Carlyle Group, have gone public in recent years. Bonderman in February said TPG is considering it as well, but has put no timetable on an offering.
eyes site near CentrePort
Houston-based Victory Packaging appears to be looking to expand into Fort Worth.
The Fort Worth City Council on Tuesday is scheduled to hear a request for economic incentives for the company. City staff doesn’t reveal specifics of those requests until the council meets. A company executive also didn’t want to talk about the project until after the council has met.
But a permit filing shows the family-owned and operated company that specializes in distributing such things as boxes, paper and cushion packaging and shipping supplies is eyeing a location near CentrePort in far east Fort Worth.
The filing, for 15101 Grand River Road, which is east of 360 and south of Dallas/Fort Worth Airport, shows plans call for a $10 million, 327,663-square-foot warehouse. The property is owned by Seefried Industrial Properties.
Victory Packaging has locations nationwide and in Canada and Mexico. In Texas, locations are in Dallas, San Antonio and Houston, according to its website.
Denton group to petition
for vote on fracking ban
A grass-roots group in Denton said Friday that it has collected enough signatures to put a proposed ban on hydraulic fracturing within city limits before voters on the November ballot.
The Texas Tribune reported that the organization, called the Denton Drilling Awareness Group, announced it has had 596 Denton residents sign a petition to ban fracking, the technique used to produce natural gas in the Barnett Shale.
“We want to send a strong message to the city that the citizens want this,” said Cathy McMullen, the group’s president. “We need to gather as many signatures as possible to show they’ll pay a political price if they try to thwart their constituents’ wishes,” she added in a statement.
Denton city officials were not available for comment.
The petition grew out of a citizens advisory group that worked on changes to the city’s drilling ordinance last year, which increased the buffer around protected uses like homes and schools to 1,200 feet.