Gladstone Capital Corporation Closes 2016 with Surge in Portfolio Activity
December 28 2016 - 04:10PM
Gladstone Capital Corporation (NASDAQ:GLAD) ("Gladstone Capital")
announced that it completed the sale of one of its proprietary
investments as well as the funding of three new portfolio
investments, closing 2016 on a strong note.
“We are pleased to announce that we realized a nice equity gain
on the exit of our investment in Behrens and the reinvestment of
the proceeds. We grew our interest earning assets by a net
additional $8.3 million associated with the closing of three new
investments. Realizing a capital gain and growing our
interest earning assets are two keys to growing our earnings and
supporting the distributions to Gladstone Capital’s shareholders,”
commented Bob Marcotte, Gladstone Capital’s President.
Specifically, the recent portfolio activity included the
following:
On November 18, 2016, Gladstone Capital invested in Sea Link
International ("Sea Link") through secured second lien debt and an
equity co-investment. Sea Link is a rapidly growing manufacturer
and supplier of OEM automotive lighting components and
subassemblies and is backed by an experienced private equity
firm.
On December 19, 2016, Gladstone Capital completed the sale of
its equity interest and the prepayment of its debt investment in
Behrens Manufacturing, LLC ("Behrens"). In connection with
this transaction, Gladstone Capital realized a capital gain of
approximately $2 million on its equity investment and the repayment
of $4.7 million of debt and associated exit fees. Behrens,
headquartered in Winona, MN, is a leading manufacturer of branded
metal containers used in a diverse, growing array of consumer and
professional applications.
On December 22, 2016, Gladstone Capital invested $5.0 million in
LDiscovery, LLC (“LDiscovery”) through broadly syndicated secured
second lien debt to support their acquisition of Kroll Ontrack.
LDiscovery is a leader in eDiscovery management solutions,
providing end-to-end legal and technology consulting services to
law firms, companies, and government agencies in the United States
and Kroll Ontrack is a global end-to-end provider of eDiscovery and
data recovery solutions.
On December 28, 2016, Gladstone Capital invested $7.0 million in
Vacation Rental Pros Property Management, LLC (“VRP”) through
secured second lien debt to support the company’s continued growth
and expansion into new markets. VRP is an innovative property
management and rental reservation system that leverages a
proprietary technology platform to maximize occupancy and
revenue. With 2,000 properties under exclusive management,
VRP is one of the fastest growing vacation rental management
companies in North America.
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.
Information on the business activities of Gladstone Capital and 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.
For further information: Gladstone Capital Corporation, 703-287-5893
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