Gladstone Investment Corporation Announces Amendment to Credit Facility: Increased Facility Size, Extended Maturity, Improved...
August 23 2018 - 4:30PM
Gladstone Investment Corporation (NASDAQ: GAIN) (the “Company”)
today announced the amendment and extension of its credit facility
led by KeyBank National Association (“KeyBank”), which includes an
increase in facility size, extension of the maturity date, and
reduction in pricing.
Effective, August 22, 2018, the Company, through
its wholly-owned subsidiary Gladstone Business Investment, LLC,
entered into Amendment No. 4 (the “Amendment”) to its Fifth Amended
and Restated Credit Agreement with KeyBank, as administrative
agent, swingline lender, managing agent and lead arranger,
Gladstone Management Corporation, the Company’s adviser, as
servicer, and certain other lenders party thereto. Among other
things, the Amendment:
- Increases the facility size from
$165.0 million to $200.0 million, which may be expanded to $300.0
million through additional commitments;
- Extends the revolving period from
November 15, 2019 to August 22, 2021;
- Extends the maturity date from
November 15, 2021 to August 22, 2023, at which time all principal
and interest will be due and payable;
- Reduces the interest rate margin by
30 basis points from 3.15% to 2.85% during the revolving period
(ending August 21, 2021), after which the margin increases to 3.10%
for a one year period, and to 3.35% for the remaining term of the
Credit Facility thereafter;
- Changes the unused commitment fee
from 0.50% on the portion of the total unused commitment amount
that is less than or equal to 45% of the total commitments and
0.80% on the total unused commitment amount that is greater than
45% to: 0.50% when the average unused commitment amount for the
reporting period is equal to or less than 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
- Reduces the minimum asset coverage
with respect to senior securities representing indebtedness from
200% to 150% (or such percentage as may be set forth in the
Investment Company Act of 1940, as amended).
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. Information on the business activities of all the
Gladstone funds can be found at www.gladstonecompanies.com.
Source: Gladstone Investment Corporation
Investor Relations Inquiries:
Please visit www.gladstone.com or +1-703-287-5893.
Forward-looking Statements:
The statements in this press release may be
“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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