The Goldman Sachs Group Inc. (NYSE: GS) priced the initial public offering for its spin-off of Goldman Sachs BDC Inc. (NYSE: GSBD) on Tuesday evening, and the stock began trading Wednesday morning. The company priced 6 million shares at the low-end of the expected range of $20 to $21 and opened for trading Wednesday morning at $19.50.

Goldman Sachs BDC is a management investment company that invests in middle-market companies with pretax earnings in a range of $5 million to $75 million. Goldman Sachs had a stake of about 20% in the firm at the end of 2014, according to Bloomberg. Like a real-estate investment trust, the new company pays a majority of its earnings to shareholders and gets a tax break in return for investing in smaller U.S. businesses.

Joint bookrunners for the offering are Bank of America Merrill Lynch, Goldman Sachs, Morgan Stanley, Citigroup, Credit Suisse and Wells Fargo Securities. Co-managers include Raymond James and SunTrust Robinson Humphrey. Underwriters have an overallotment option on an additional 900,000 shares.

Goldman Sachs BDC plans to use the net proceeds to repay a portion of its outstanding senior unsecured revolving debt.

The stock traded down about 1.7% at $19.65 by mid-morning, after rising to a first-day high of $19.75.

Shares of Goldman Sachs traded up about 0.1% at $190.81 in a 52-week range of $151.65 to $198.06.

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