Gladstone Investment Corporation Prices Series E Term Preferred Stock Offering
August 15 2018 - 9:00AM
Gladstone Investment Corporation (NASDAQ: GAIN) (the “Company”)
today announced that it has entered into an agreement to sell
2,600,000 shares of its newly designated 6.375% Series E Cumulative
Term Preferred Stock due 2025 (the “Series E Term Preferred
Shares”) at a public offering price of $25.00 per share, raising
$65.0 million in gross proceeds and approximately $62.7 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 390,000 additional Series E Term Preferred
Shares 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 August 22, 2018. The Series E Term Preferred
Shares will have a seven-year term, unless earlier redeemed by the
Company. The Company anticipates its Series E Term Preferred Shares
will trade on the NASDAQ Global Select Market under the symbol
“GAINL.”
BMO Capital Markets Corp., 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. B. Riley FBR, Inc. is serving as lead
manager and J.J.B. Hilliard, W.L. Lyons, LLC, Wedbush Securities
Inc., William Blair & Company, L.L.C., National Securities
Corporation, a wholly owned subsidiary of National Holdings
Corporation (NasdaqCM: NHLD), and Boenning and Scattergood, Inc.,
are serving as co-managers of the offering.
The Company intends to use the net proceeds from this offering,
plus borrowings under its credit facility, as necessary, to redeem
all outstanding shares of its 6.75% Series B Cumulative Term
Preferred Stock and its 6.50% Series C Cumulative Term Preferred
Stock and for other general corporate purposes.
Investors
are advised to carefully consider the investment objectives, risks
and charges and expenses of the Company before investing. A
prospectus supplement dated August 15, 2018, which will be filed
with the Securities and Exchange Commission (“SEC”), and the
accompanying prospectus, dated July 13, 2018, which has been filed
with the SEC, 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.
333-225447).
To obtain a copy of the prospectus supplement for this
offering and the accompanying prospectus, please contact: BMO
Capital Markets Corp., Attention: Syndicate Department, 3 Times
Square, 25th Floor, New York, New York 10036, Phone:
(800) 414-3627, Email: bmoprospectus@bmo.com; or
Janney Montgomery Scott LLC, Attention: Prospectus Department, 1717
Arch Street, Philadelphia, Pennsylvania 19103, Phone:
(215) 665-6130, Email: 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
secured debt and equity investments in lower middle market
businesses in the United States in connection with acquisitions,
changes in control, and recapitalizations. The Company has paid 157
consecutive monthly cash distributions on its common stock.
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 E Term Preferred Stock and the
anticipated use of the net proceeds by the Company for the
redemption of its 6.75% Series B Cumulative Term Preferred Stock
and its 6.50% Series C Cumulative 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: Investor Relations Inquiries: Please
call +1-703-287-5893
Gladstone Investment (NASDAQ:GAIN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Gladstone Investment (NASDAQ:GAIN)
Historical Stock Chart
From Sep 2023 to Sep 2024