In a recent announcement, Fidus Investment Corporation revealed its decision to redeem, in full, the 4.75% Notes due 2026, totaling $100,000,000 in principal amount. The redemption date is set for November 3, 2025, with the redemption price equating to 100% of the principal amount of the Notes to be redeemed, in addition to the accrued and unpaid interest up to, but not including, the Redemption Date.
The aggregate accrued interest on the Notes being redeemed, payable on the Redemption Date, is approximately $1,227,083.33. After the Redemption Date, interest on the $100,000,000 in principal amount of the Notes being redeemed will cease to accrue.
Holders of the Notes will receive the Redemption Payment upon presentation and surrender of the Notes to the Trustee in its capacity as Paying Agent. For Notes held in book-entry form, the redemption and payment procedures will be in accordance with The Depository Trust Company's applicable protocols.
It's worth noting that under U.S. federal income tax law, the Trustee or other withholding agent may be required to backup withhold at a rate of twenty-four percent (24%) on gross payments to holders who are not exempt from backup withholding and fail to provide necessary certifications. To avoid backup withholding, holders are advised to complete the required forms in connection with the presentment and surrender of the Notes called for redemption.
In light of these developments, Fidus Investment Corporation seeks to provide clarity and transparency to its stakeholders while taking necessary steps in managing its financial instruments and obligations. The market has reacted to these announcements by moving the company's shares -0.88% to a price of $20.37. If you want to know more, read the company's complete 8-K report here.
