Gladstone Capital Announces Board Approval to Reduce Required Asset Coverage as Provided for in the Small Business Credit Ava...
11 April 2018 - 6:05AM
Gladstone Capital Corporation (NASDAQ:GLAD) (the “Company”) today
announced that on April 10, 2018, the Company’s Board of Directors
(the “Board”), including a “required majority” (as such term is
defined in Section 57(o) of the Investment Company Act of 1940, as
amended (the “1940 Act”)) of the Board, approved the modified asset
coverage requirements set forth in Section 61(a)(2) of the 1940
Act, as amended by the Small Business Credit Availability Act. As a
result, the Company’s asset coverage requirements for senior
securities will be changed from 200% to 150%, effective one year
after the approval date, April 10, 2019.
Comments from Gladstone Capital Corporation’s President,
Bob Marcotte: “We welcome the recent business development
company legislation and today’s Board approval, which will
strengthen our flexibility to execute on our lower middle market
credit investment strategy over the long-term. Building on the
strong returns we delivered in 2017 and the performance of our
investments made in the last 5 years, which have generated net
realized and unrealized gains, we intend to maintain our investment
strategy and disciplined approach to loan originations.
“As an active provider of secured debt to the lower middle
market, we continue to see attractive investment opportunities. We
believe the prudent deployment of this additional capacity will
enhance our portfolio diversity, lower our risk profile, and expand
our capital market access options, while positioning us to further
improve overall returns for the benefit of our shareholders. We
believe this is a very positive development and look forward to
detailing how we intend to implement this increased financing
flexibility in the coming quarters.”
About Gladstone Capital Corporation: Gladstone
Capital Corporation is a publicly traded business development
company that invests in debt and equity securities, consisting
primarily of secured first and second lien term loans to lower
middle market businesses in the United States. Including
distributions through today, the Company has paid 182 consecutive
monthly or quarterly cash distributions on its common stock.
Information on the business activities of all the Gladstone funds
can be found at
www.GladstoneCompanies.com.
Investor Relations Inquiries:
Please visit www.gladstonecompanies.com or +1-703-287-5893.
Forward-looking Statements:The statements in this press release
about future growth and shareholder returns are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These forward-looking statements
inherently involve certain risks and uncertainties in predicting
future results and conditions. Although these statements are based
on our current plans that are believed to be reasonable as of the
date of this press release, a number of factors could cause actual
results and conditions to differ materially from these
forward-looking statements, including those factors described from
time to time in our filings with the U.S. Securities and Exchange
Commission. The Company undertakes no obligation to publicly
release the result of any revisions to these forward looking
statements that may be made to reflect any future events or
otherwise, except as required by law.
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