* Paulson & Co to buy 43.7 mln shrs of 58.3 mln offering
* To use proceeds to repay debt, make investments or lend
* Shares rise 14 pct in early trade
April 19 (Reuters) – American Capital Ltd priced its $295 million common stock offering to institutional investors, including Paulson & Co Inc, at $5.06 per share, sending its shares up 14 percent.
American Capital agreed to sell about 58.3 million common shares, including 43.7 million shares to funds and accounts managed by billionaire investor John Paulson.
American Capital, which has been trying to restructure billions of dollars in debt, expects to use the proceeds from the offering for investment and lending activities and to repay debt, it said in a statement.
The offering, which is made under an existing shelf registration statement, is expected to close on April 22, the provider of financing to small- and mid-sized businesses said.
Shares of the Bethesda, Maryland-based company were up 12 percent at $5.95 in morning trade on Nasdaq. The stock opened up more than 14 percent at $6.08.
(Reporting by Archana Shankar in Bangalore; Editing by Gopakumar Warrier) Keywords: AMERICANCAPITAL/
(archana.shankar@thomsonreuters.com; within U.S +1 646 223 8780; Outside U.S +91 080 4135 5800; Reuters messaging: archana.shankar.reuters.com@reuters.net)
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