Gladstone Investment Corporation Prices Preferred Stock Offering
September 19 2016 - 4:40PM
Gladstone Investment Corporation (NASDAQ:GAIN) (the “Company”)
today announced that it has entered into an agreement to sell
2,000,000 shares of its newly designated 6.25% Series D Cumulative
Term Preferred Stock due 2023 (the “Series D Term Preferred
Shares”) at a public offering price of $25.00 per share, raising
$50.0 million in gross proceeds and approximately $48.2 million in
net proceeds after payment of underwriting discounts and
commissions and estimated expenses of the offering payable by the
Company. The Company has also granted the underwriters a 30-day
option to purchase 300,000 additional Series D Term Preferred
Shares on the same terms and conditions solely to cover
over-allotments, if any. The closing of the transaction is subject
to customary closing conditions and the shares are expected to be
delivered on or about September 26, 2016. The Series D Term
Preferred Shares will have a seven-year term, unless earlier
redeemed by the Company. The Company anticipates its Series D Term
Preferred Shares will trade on the NASDAQ Global Select Market
under the symbol “GAINM.”
Janney Montgomery Scott LLC and Ladenburg Thalmann & Co.
Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc.
(NYSE MKT:LTS) are serving as joint book-running managers. J.J.B.
Hilliard, W.L. Lyons, LLC and Wunderlich Securities, Inc. are
serving as co-lead managers of the offering. William Blair &
Company, L.L.C. and Maxim Group LLC are serving as co-managers of
the offering.
The Company intends to use the net proceeds from this offering
to redeem outstanding shares of its 7.125% Series A Cumulative Term
Preferred Stock, to pay down debt under its revolving line of
credit and for other general corporate purposes.
Investors
are advised to carefully consider the investment objectives, risks
and charges and expenses of the Company before investing. A
prospectus supplement dated September 19, 2016, which will be filed
with the Securities and Exchange Commission, and the accompanying
prospectus, dated July 28, 2016, which has been filed with the
Securities and Exchange Commission, 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 Securities
and Exchange Commission (File No. 333-204996). To obtain a
copy of the prospectus supplement for this offering and the
accompanying prospectus, please contact: Janney Montgomery Scott
LLC, 1717 Arch Street, Philadelphia, PA, 19103, Attention: Taxable
Fixed Income Department or prospectus@janney.com.
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 Investment
Corporation: Gladstone Investment Corporation is a
publicly traded business development company that seeks to make
debt and equity investments in small and medium-sized businesses in
the United States in connection with acquisitions, changes in
control and recapitalizations. The Company has paid 134 consecutive
monthly cash distributions on its common stock.
CONTACT: Investor Relations Inquiries: Please call +1-703-287-5893
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