Gladstone Investment Increases Monthly Cash Distributions to Common Stockholders and Announces Cash Distributions for April, ...
April 11 2017 - 4:05PM
Gladstone Investment Corporation (NASDAQ:GAIN) (the “Company” or
“GAIN”) announced today that its board of directors declared the
following monthly cash distributions to preferred and common
stockholders, increasing distributions to common stockholders by
more than 2%.
The Company also announced it will pay a supplemental
distribution of $0.06 per share to holders of its common stock in
June 2017. In this regard, the Company anticipates paying
semi-annual, supplemental distributions each fiscal year, with the
June 2017 payment being the first payment in fiscal year 2018.
These payments are generally expected to be primarily made from
undistributed net capital gains, but may also be made from
undistributed net investment income, which the Company anticipates
it will continue to generate in the future. The Company’s
board of directors will evaluate the amount and timing of
additional, semi-annual, supplemental distributions in future
periods.
GAIN provides debt financing to portfolio companies that
produces interest income, which is generally the primary source of
its monthly run-rate distributions on its preferred and common
stock. Undistributed net investment income represents income that
has not yet been paid out to shareholders and which was largely
generated from other income. Other income primarily consists of
success fees from the Company’s debt investments, which are
typically generated upon exit, and dividend income related to its
equity investments. As a result of GAIN’s significant equity
investments, it can earn meaningful amounts of dividend income and
realized gains upon exit.
GAIN’s strategy contemplates the sale of its portfolio companies
to realize gains on its equity investments and to generate other
income, in the form of dividend income and success fees, upon exit.
While the timing of exits is often unpredictable, the Company
believes it is at a stage in its life cycle where it is prudent to
reward holders of its common stock by making a supplemental
distribution from undistributed realized gains and net investment
income.
The Company plans to continue its monthly distributions to
holders of its common stock at the new annual run-rate of $0.77 per
share, which it will seek to increase as it grows its assets and
increases its net investment income.
Common Stock: $0.064 per share of common stock
for each of April, May, and June 2017, and a supplemental
distribution of $0.06 per share of common stock for June 2017,
payable per the table below. The Company has paid 141 consecutive
monthly cash distributions on its common stock.
Ex-Dividend Date |
Record Date |
Payment Date |
Cash Distribution |
April
19 |
April
21 |
April
28 |
$0.064 |
May
17 |
May
19 |
May
31 |
$0.064 |
June
1 |
June
5 |
June
15 |
$0.060* |
June
19 |
June
21 |
June
30 |
$0.064 |
Total for the Quarter: |
$0.252 |
|
|
* Denotes supplemental distribution to common stockholders.
Series B Term Preferred Stock: $0.140625 per
share of the Company’s 6.75% Series B Cumulative Term Preferred
Stock (“Series B Term Preferred Stock”) for each of April, May, and
June 2017, payable per the table below. The Series B Term Preferred
Stock trades on the NASDAQ under the symbol “GAINO.”
Ex-Dividend Date |
Record Date |
Payment Date |
Cash Distribution |
April
19 |
April
21 |
April
28 |
$0.140625 |
May
17 |
May
19 |
May
31 |
$0.140625 |
June
19 |
June
21 |
June
30 |
$0.140625 |
Total for the Quarter: |
$0.421875 |
|
|
Series C Term Preferred Stock: $0.135417 per
share of the Company’s 6.50% Series C Cumulative Term Preferred
Stock (“Series C Term Preferred Stock”) for each of April, May, and
June 2017, payable per the table below. The Series C Term Preferred
Stock trades on the NASDAQ under the symbol “GAINN.”
Ex-Dividend Date |
Record Date |
Payment Date |
Cash Distribution |
April
19 |
April
21 |
April
28 |
$0.135417 |
May
17 |
May
19 |
May
31 |
$0.135417 |
June
19 |
June
21 |
June
30 |
$0.135417 |
Total for the Quarter: |
$0.406251 |
|
|
|
Series D Term Preferred Stock: $0.13020833 per
share of the Company’s 6.25% Series D Cumulative Term Preferred
Stock (“Series D Term Preferred Stock”) for each of April, May, and
June 2017, payable per the table below. The Term Preferred Stock
trades on the NASDAQ under the symbol “GAINM.”
Ex-Dividend Date |
Record Date |
Payment Date |
Cash Distribution |
April
19 |
April
21 |
April
28 |
$0.13020833 |
May
17 |
May
19 |
May
31 |
$0.13020833 |
June
19 |
June
21 |
June
30 |
$0.13020833 |
Total for the Quarter: |
$0.39062499 |
|
|
|
The Company offers a dividend reinvestment plan
(the “DRIP”) to its common stockholders. For more information
regarding the DRIP, please visit www.gladstoneinvestment.com.
Gladstone Investment Corporation is a publicly traded business
development company that seeks to make debt and equity investments
in lower middle market businesses in the United States in
connection with acquisitions, changes in control and
recapitalizations. Information on the business activities of all
the Gladstone funds can be found at www.gladstonecompanies.com.
Forward-looking Statements: The statements in this press release
regarding potential future distributions, earnings and operations
of the Company are "forward-looking statements." These
forward-looking statements inherently involve certain risks and
uncertainties in predicting future results and conditions. Although
these statements are based on Gladstone
Investment's 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 Gladstone Investment's filings with
the Securities and Exchange Commission. Gladstone
Investment 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.
For Investor Relations inquiries related to any of the monthly
dividend paying Gladstone funds, please visit
www.gladstone.com.
For further information: Gladstone Investment Corporation, +1-703-287-5893
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