Ninety cents on the dollar, and the stock is celebrating.
Investcorp Credit Management BDC said last night it has agreed to merge into BCP Investment Corporation, an all-stock transaction valued at 90% of its net asset value. $ICMB is +30.58% before the bell on an 11 million share float.
Both numbers are true at once. A stock that jumps on an offer below book was, by implication, priced further below book than the deal values it. The premium is to yesterday's quote. The discount to NAV is still in the terms.
And the 90% is not a check. It is paid in the acquirer's shares, so holders trade one small credit vehicle for a slice of the combined one, worth whatever that stock fetches when the deal closes, if it closes. The release lists improved trading liquidity among the benefits, which says plenty about the liquidity being left behind.