MCLEAN, Va., Jan. 3, 2011 /PRNewswire-FirstCall/ -- Gladstone
Investment Corporation (Nasdaq: GAIN) (the "Company") announced
that on December 30, 2010, it sold
its equity investment and received full repayment of its debt
investment in Chase II Holding Corporation ("Chase Doors"). In
March 2006, the Company made its
original equity investment and provided debt financing in support
of a management-led buyout of Chase Doors.
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"Gladstone Investment has enjoyed an excellent relationship with
the talented management team at Chase Doors. The team
achieved outstanding results in growing the business and building
value in a challenging economic environment," said Dave Dullum, the Company's President. "In
addition to the monthly dividends we pay to our stockholders from
the current income on our debt and mezzanine investments, we also
seek to achieve capital gains from the equity portions of our
investments. In this regard, the Chase Doors transaction,
similar to the A. Stucki Holding Corporation exit in June 2010, is a significant and successful
realization of a capital gain from our investment strategy."
Gladstone Investment Corporation is a publicly traded business
development company that seeks to make debt and equity investments
in small and mid-sized businesses in the
United States in connection with acquisitions, changes in
control and recapitalizations. Additional information on this sale
and the business of all the Gladstone Funds can be found at
www.gladstonecompanies.com.
For Investor Relations inquiries related to any of the monthly
dividend paying Gladstone Funds, please visit
www.gladstone.com.
Forward-looking Statements:
The statements in this press release regarding the
longer-term prospects of the Company's investment strategy, future
capital gains, and expected continued payment of dividends are
"forward-looking statements." These forward-looking statements
inherently involve certain risks and uncertainties, although they
are based on the Company's current plans that are believed to be
reasonable as of the date of this press release. Factors that may
cause the Company's actual results to differ from these
forward-looking statements include, among others, the duration and
potential future effects of the current economic downturn on its
portfolio companies and on the senior loan market and those factors
listed under the caption "Risk Factors" of the Company's Form
N-2/A, as filed with the SEC on November 22,
2010. The risk factors set forth in the Form N-2/A under the
caption "Risk Factors" are specifically incorporated by reference
into this press release. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
SOURCE Gladstone Investment Corporation