Gladstone Capital Announces Amendment to its Revolving Credit Facility Increases Commitment, Extends Maturity and Improves Pr...
March 12 2018 - 11:25AM
Gladstone Capital Corporation (NASDAQ:GLAD) (the “Company”) today
announced the amendment and extension of its syndicated credit
facility led by KeyBank National Association (“KeyBank”), which
includes a reduction in pricing, expansion of the total commitment
and extension of the maturity date.
Effective, March 9, 2018, the Company, through
its wholly-owned subsidiary, Gladstone Business Loan, LLC, entered
into Amendment No. 4 (the “Amendment”) to its Fifth Amended and
Restated Credit Agreement with KeyBank as administrative agent,
managing agent and lead arranger, Gladstone Management Corporation,
the Company’s Adviser, as servicer, and certain other lenders party
thereto (together with the Amendment, the “Credit Facility”).
Amendment No. 4 amended the Credit Facility to:
- Extend the revolving period from
January 19, 2019 to January 15, 2021;
- Extend the maturity date from May
1, 2020 to April 15, 2022, at which time all principal and interest
will be due and payable;
- Reduce the interest rate margin by
40 basis points effective immediately to 2.85% for the balance of
the revolving period (January 15, 2021), after which the margin
increases to 3.25% for the balance of the facility term;
- Change the unused commitment fee
from 0.50% of the total unused commitment amount to 0.50% when the
average unused commitment amount for the reporting period is less
than or equal to 50%, 0.75% when the average unused commitment
amount for the reporting period is greater than 50% but less than
or equal to 65%, and 1.00% when the average unused commitment
amount for the reporting period is greater than 65%;
and
- Increase the current commitment
amount from $170 million to $190 million with the ability to expand
to a total facility amount of $265 million through additional
commitments of existing lenders.
Comments from Gladstone Capital Corporation’s President,
Bob Marcotte: “We would like to thank KeyBank and the
participating banks, the majority of which increased their
commitments, for their continued confidence and support of
Gladstone Capital in closing on this amendment. The
combination of the increased capacity, maturity extension and
pricing improvements in this amendment are expected to provide both
an immediate benefit to our current net interest income as well as
support the long-term growth of our investment portfolio. This
amendment represents an important milestone for Gladstone Capital
and underscores our strong portfolio performance.”
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. Including
distributions through today, the Company has paid 181 consecutive
monthly or quarterly cash distributions on its common stock.
Information on the business activities of all the Gladstone funds
can be found at www.GladstoneCompanies.com.
Investor Relations Inquiries: Please visit
www.gladstonecompanies.com or +1-703-287-5893.
Forward-looking Statements:The statements in this press release
about future growth and shareholder returns are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These forward-looking statements
inherently involve certain risks and uncertainties in predicting
future results and conditions. Although these statements are based
on our 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 our filings with the U.S. Securities and Exchange
Commission. The Company 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.
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