On the heels of its recent merger, Santa Monica-based middle market lender Blackrock TCP Capital Corp. priced an underwritten public offering of $325 million in aggregate principal amount of notes due in 2029 last month.

This offering aims to repay the firm’s notes due this year and temporarily reduce other debt obligations. Morgan Stanley, Bank of America Securities and SMBC Nikko Securities are managing the offering.

The financial maneuvering comes after Blackrock TCP merged with Blackrock Capital Investment Corp. in March. The combined entities still operate as a subsidiary of New York-based Blackrock Inc., one of the largest asset managers in the world with $9 trillion in assets under management.

According to Rajneesh Vig, the co-head of U.S. Private Capital for BlackRock and chair and chief executive of BlackRock TCP, the merger looked to expand its lending capability to middle-market companies. Additionally, the base management fee rate for portfolios was reduced from 1.5% to 1.25%, as well as a waiver of all or a portion of its advisory fees as part of the merger.

“The combination with BCIC positions TCPC for sustained growth that we believe will create meaningful value for shareholders,” Vig said.

Blackrock TCP manages approximately $1.5 billion in assets, providing senior secured loans, mezzanine loans and equity investments to middle-market companies.

The note offering is the latest among asset managers looking to extend credit runways as interest rates remain elevated.

New York-based insurance broker Marsh Mclennan priced $1 billion senior notes in February. Athene Holding Ltd., the Iowa-based financial services company, priced $1 billion senior notes in March to support its corporate growth.

In its first quarter earnings, Blackrock TCP reported total investment value of $2.12 billion, up from $1.6 billion at the end of last year.