Gladstone Capital Corporation Prices Series 2024 Term Preferred Stock Offering
September 19 2017 - 6:33PM
Gladstone Capital Corporation (NASDAQ:GLAD) (the “Company”) today
announced that it has entered into an agreement to sell 1,800,000
shares of its newly designated 6.00% Series 2024 Term Preferred
Stock (the “Series 2024 Term Preferred Stock”) at a public offering
price of $25.00 per share, raising $45.0 million in gross proceeds
and approximately $43.3 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 270,000
additional shares of Series 2024 Term Preferred Stock 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 27, 2017. The Company anticipates its Series 2024 Term
Preferred Stock will trade on the NASDAQ Global Select Market under
the symbol GLADN. 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. FBR Capital Markets & Co., a B. Riley
Financial Company, is serving as a lead manager for the offering.
BB&T Capital Markets, a division of BB&T Securities, LLC,
J.J.B. Hilliard, W.L. Lyons, LLC, Wedbush Securities Inc. and
William Blair & Company are serving as co-managers for the
offering.
The Company intends to use the net proceeds from this offering
plus borrowings under its credit facility to redeem all outstanding
shares of its 6.75% Series 2021 Term Preferred Stock as further
described in the preliminary prospectus supplement. Such voluntary
redemption will be contingent upon the Company’s successful
completion of the public offering of its Series 2024 Term Preferred
Stock.
Investors are advised to carefully consider the
investment objectives, risks and charges and expenses of the
Company before investing. The prospectus supplement, dated
September 19, 2017, which will be filed with the Securities and
Exchange Commission and the accompanying prospectus, dated February
6, 2017, 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 SEC (File No.
333–208637).
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 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 shares of Series 2024 Term Preferred Stock and the
anticipated use of the net proceeds by the Company for the
redemption of the 6.75% Series 2021 Term Preferred Stock. 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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