Gladstone Investment Corporation Announces Closing of Offering of 2,990,000 Shares of its 6.375% Series E Cumulative Term Pre...
August 22 2018 - 4:30PM
Gladstone Investment Corporation (Nasdaq: GAIN) (the “Company”)
today announced that it closed its previously announced offering of
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.
Simultaneously with the closing of the offering, the underwriters
exercised in full their option to purchase an additional 390,000
Series E Term Preferred Shares on the same terms to cover
over-allotments, resulting in a total issuance of 2,990,000 shares
for gross proceeds of approximately $74.8 million and net proceeds
of approximately $72.1 million, after payment of underwriting
discounts and commissions and estimated offering expenses.
The Series E Term Preferred Shares are expected to begin trading
on the Nasdaq Global Select Market on or about August 23, 2018
under the symbol “GAINL.” The Series E Term Preferred Shares
are mandatorily redeemable on August 31, 2025 at $25.00 per
share. BMO Capital Markets Corp., Janney Montgomery Scott LLC
and Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg
Thalmann Financial Services Inc. (NYSE MKT: LTS), served as joint
book-running managers. B. Riley FBR, Inc. served 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.
served 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.
This offering was made pursuant to the Company’s existing shelf
registration statement, previously filed with the Securities and
Exchange Commission (“SEC”) (File No. 333-225447).
A final prospectus supplement related to the offering was filed
with the SEC on August 15, 2018, posting publicly to EDGAR on
August 16, 2018, and is available on the SEC website at www.sec.gov
or by contacting 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. The prospectus supplement, dated
August 14, 2018, and accompanying prospectus, dated July 13, 2018,
each of which has been filed with the SEC, contain a description of
these matters and other important information about the Company and
should be read carefully before investing. Investors are advised to
carefully consider the investment objectives, risks and charges and
expenses of the Company before investing.
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
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 redemptions discussed above will be
completed on the terms described, or at all. The application of net
proceeds is 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
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