Gladstone Capital Corporation Announces Exercise and Closing of Over-Allotment Option for Notes due 2023
November 13 2018 - 11:57AM
Gladstone Capital Corporation (NASDAQ: GLAD) (the “Company”) today
announced that, in connection with its previously disclosed
registered public offering of $50.0 million aggregate principal
amount of its 6.125% notes due 2023 (the “Initial Notes”) that
closed November 6, 2018, the underwriters of such offering have
fully exercised and closed their over-allotment option to purchase
an additional $7.5 million aggregate principal amount of the 6.125%
notes due 2023 (the “Option Notes” and together with the Initial
Notes, the “Notes”). The Company received approximately $7.3
million in additional net proceeds from the sale of the Option
Notes, for a total of approximately $55.5 million in net proceeds,
after deducting payment of underwriting discounts and commissions
and estimated offering expenses payable by the Company. Keefe,
Bruyette & Woods, A Stifel Company, and Janney Montgomery Scott
acted as joint book-running managers for this offering. Ladenburg
Thalmann acted as lead manager for this offering. William Blair,
J.J.B. Hilliard, W.L. Lyons, LLC, National Securities Corporation
and Wedbush Securities acted as co-managers for this offering.
The Notes trade on The Nasdaq Global Select Market under the
trading symbol “GLADD”.
As previously disclosed, the Company intends to use the net
proceeds from this offering to repay a portion of the amount
outstanding under its revolving credit facility, to fund new
investment opportunities, and for other general corporate
purposes.
Investors are advised to carefully consider the
investment objectives, risks, charges and expenses of the Company
before investing. The prospectus supplement, dated November 1,
2018, and the accompanying prospectus, dated February 1, 2018,
filed with the U.S. Securities and Exchange Commission (the “SEC”),
contain this and other information about the Company and should be
read carefully before investing.
The offering was 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 final
prospectus supplement for this offering and the accompanying
prospectus, please contact: Keefe, Bruyette & Woods, Inc., 787
Seventh Avenue, 4th Floor, New York, NY 10019 (telephone number
1-800-966-1559).
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 Notes and the anticipated use of the net proceeds by
the Company. 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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