THL Credit NAV falls 30%; sees lower dividend

THL Credit's (NASDAQ:TCRD) net asset value of $5.34 per share as of April 15, reported in connection with the pricing of its previously announced $30M stock issuance, falls 30% from Dec. 31, 2019.

The decline in NAV is due to its Logan JV, which has experienced volatility in the broadly syndicated bank loan market, and increased credit risk as a result of the COVID-19 crisis.

Expects to announce a lower dividend in early May.

"We anticipate that the size of the portfolio and performance of certain credits will not support the current dividend level of 21 cents per share," the company said in a statement.

First Eagle Investment Management, which acquired TCRD's adviser, committed to purchase $20M of the stock issuance and the sellers of TCRD’s advisor committed to purchase the remaining $10M. 

Plans to use the proceeds from this issuance to conduct a tender offer for shares trading at a discount to NAV if the transaction is approved by stockholders at a special meeting.