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Fifth Street to raise $149.5M in stock offering

WHITE PLAINS, N.Y. (AP) -- Fifth Street Finance Corp. is aiming to raise $149.5 million from a public offering of 14 million shares priced at $10.68 each.

The investment firm said Tuesday that it also has granted underwriters the option to buy up to an additional 2.1 million shares.

The company intends to use the proceeds from the offering to repay debt borrowed against its lines of credit, but noted it also plans to make investments in small and mid-sized companies.

The shares purchased through the offering are expected to be delivered on or about Dec. 7.

Fifth Street shares were down 52 cents, or 4.8 percent, to $10.32 in afternoon trading.