Gladstone Capital Corporation Announces Offering of 6.125% Notes due 2023
02 November 2018 - 9:33AM
Gladstone Capital Corporation (NASDAQ: GLAD) (the “Company”) today
announced that it priced a public offering of $50.0 million
aggregate principal amount of 6.125% Notes due 2023 (the
“Notes”) on November 1, 2018. The Notes will mature on November 1,
2023, and may be redeemed in whole or in part at any time or from
time to time at the Company’s option on or after November 1, 2020.
The Notes will bear interest at a rate of 6.125% per year payable
quarterly on February 1, May 1, August 1 and November 1 of each
year, beginning February 1, 2019. The Company also granted the
underwriters a 30-day option to purchase up to an additional $7.5
million in aggregate principal amount of Notes to cover
overallotments, if any. The Company expects to list the Notes on
the Nasdaq Global Select Market under the trading symbol “GLADD.”
Keefe, Bruyette & Woods, A Stifel Company, and Janney
Montgomery Scott are acting as joint book-running managers for this
offering. Ladenburg Thalmann is acting as lead manager for this
offering. William Blair, J.J.B. Hilliard, W.L. Lyons, LLC, National
Securities Corporation and Wedbush Securities are acting as
co-managers for this offering.
The closing of the transaction is subject to customary closing
conditions and the Notes are expected to be delivered on or about
November 6, 2018.
The Company intends to use the net proceeds from this offering
to repay a portion of the amount outstanding under its revolving
credit facility, to fund new investment opportunities, and for
other general corporate purposes.
Investors are advised to carefully consider the
investment objectives, risks, charges and expenses of the Company
before investing. The prospectus supplement, dated November 1,
2018, and the accompanying prospectus, dated February 1, 2018,
which will be filed with the U.S. Securities and Exchange
Commission (the “SEC”), contain this and other information about
the Company and should be read carefully before
investing.
The offering is being conducted as a public offering under the
Company’s effective shelf registration filed with the SEC (File
No. 333–208637).
To obtain a copy of the preliminary prospectus
supplement for this offering and the accompanying prospectus,
please contact: Keefe, Bruyette & Woods, Inc., 787 Seventh
Avenue, 4th Floor, New York, NY 10019 (telephone number
1-800-966-1559).
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of
these securities in any state or other jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
other jurisdiction.
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.
Forward-Looking Statements
This press release contains statements as to the Company’s
intentions and expectations of the outcome of future events that
are forward-looking statements. You can identify these statements
by the fact that they do not relate strictly to historical or
current facts. Forward-looking statements are not guarantees of
future performance and involve known and unknown risks,
uncertainties and other factors that may cause the actual results
to differ materially from those anticipated at the time the
forward-looking statements are made. These statements relate to the
offering of Notes and the anticipated use of the net proceeds by
the Company. No assurance can be given that the transaction
discussed above will be completed on the terms described, or at
all. Completion of the offering on the terms described, and the
application of net proceeds, are subject to numerous conditions,
many of which are beyond the control of the Company. 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, except as required by law. For a
description of certain risks to which the Company is or may be
subject, please refer to the factors discussed under the captions
“Forward-Looking Statements” and “Risk Factors” included in the
Company’s filings with the SEC (accessible at www.sec.gov).
CONTACT: For further information: Gladstone Capital Corporation,
703-287-5898.
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