Gladstone Capital Corporation Announces New Series 2024 Term Preferred Stock Offering and Intent to Redeem All Outstanding Sh...
September 19 2017 - 9:08AM
Gladstone Capital Corporation (NASDAQ:GLAD) (the “Company”)
today announced that it plans to sell shares of its newly
designated Series 2024 Term Preferred Stock (the “Series 2024 Term
Preferred Stock”) in an underwritten public offering. The public
offering price and other terms are to be determined by negotiations
between the Company and the underwriters. The Company also plans to
grant the underwriters a 30-day option to purchase additional
shares of the Series 2024 Term Preferred Stock on the same terms
and conditions solely to cover over-allotments, if any. Janney
Montgomery Scott LLC and Ladenburg Thalmann & Co. Inc., a
subsidiary of Ladenburg Thalmann Financial Services Inc.
(NYSEMKT:LTS) are serving as joint book-running managers. FBR
Capital Markets & Co., a B. Riley Financial Company, is serving
as a lead manager for the offering. BB&T Capital Markets, a
division of BB&T Securities, LLC, J.J.B. Hilliard, W.L. Lyons,
LLC, Wedbush Securities Inc. and William Blair & Company are
serving as co-managers for the offering.
The Company intends to use the net proceeds from this offering
plus borrowings under its credit facility to redeem all outstanding
shares of its 6.75% Series 2021 Term Preferred Stock as further
described in the preliminary prospectus supplement. Such voluntary
redemption will be contingent upon the Company’s successful
completion of the public offering of its Series 2024 Term Preferred
Stock.
Investors are advised to carefully consider the
investment objectives, risks and charges and expenses of the
Company before investing. The preliminary prospectus supplement,
dated September 19, 2017, and the accompanying prospectus, dated
February 6, 2017, which have been 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 is being 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 preliminary prospectus
supplement for this offering and the accompanying prospectus,
please contact: Janney Montgomery Scott LLC, 1717 Arch Street,
Philadelphia, PA 19103, Attention: Taxable Fixed Income Department
or prospectus@janney.com.
The information in the preliminary prospectus
supplement, the accompanying prospectus and this press release is
not complete and may change. 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 shares of Series 2024 Term Preferred Stock and the
anticipated use of the net proceeds by the Company for the
redemption of the 6.75% Series 2021 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: For further information: Gladstone Capital Corporation,
703-287-5898.
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