Gladstone Investment Corporation Announces Closing of Offering of 2,300,000 Shares of its 6.25% Series D Cumulative Term Pref...
September 26 2016 - 10:51AM
Gladstone Investment Corporation (NASDAQ:GAIN) (the “Company”)
today announced that it closed its previously announced offering of
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.
Simultaneously with the closing of the offering, the underwriters
exercised in full their option to purchase an additional 300,000
Series D Term Preferred Shares on the same terms to cover
over-allotments, resulting in a total issuance of 2,300,000 shares
for gross proceeds of approximately $57.5 million and net proceeds
of approximately $55.5 million, after payment of underwriting
discounts and commissions and estimated offering expenses.
The Series D Term Preferred Shares are expected to begin trading
on the NASDAQ Global Select Market on or about September 27, 2016
under the symbol “GAINM.” The Series D Term Preferred Shares
are mandatorily redeemable on September 30, 2023 at $25.00 per
share. Janney Montgomery Scott LLC and Ladenburg Thalmann
& Co. Inc., a subsidiary of Ladenburg Thalmann Financial
Services Inc. (NYSE MKT:LTS), served as joint book-running managers
for the offering. J.J.B. Hilliard, W.L. Lyons, LLC and Wunderlich
Securities, Inc. served as co-lead managers of the offering.
William Blair & Company, L.L.C. and Maxim Group LLC served as
co-managers of the offering.
The Company intends to use the net proceeds to redeem all
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. This offering was made pursuant
to the Company’s existing shelf registration statement, previously
filed with the Securities and Exchange Commission. The final
prospectus supplement related to the offering dated September 19,
2016 and the accompanying prospectus are available on the SEC
website at www.sec.gov or by contacting 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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