Gladstone Investment Corporation Launches Public Offering Of 6.00% Notes

MCLEAN, Va., Aug. 05, 2020 (GLOBE NEWSWIRE) -- Gladstone Investment Corporation (Nasdaq: GAIN) (the “Company”) today announced that on May 22, 2020 it filed a prospectus supplement with the U.S. Securities and Exchange Commission (“SEC”) for a continuous public offering of up to $350 million of its 6.00% Notes due 2040 (the “Notes”) at an offering price of $25.00 per share (the “Offering”). The Company is only offering up to $200 million aggregate principal amount of the Notes under the prospectus supplement and intends to file a new shelf registration statement on Form N-2 and a related prospectus supplement in order to register and offer the entire aggregate principal amount of Notes by July 2022. Of the $200 million in Notes offered under the existing prospectus supplement, the Company expects up to $177 million in net proceeds, after payment of dealer manager fees and selling commissions and estimated expenses of the Offering payable by the Company, assuming all Notes are sold in the Offering. Gladstone Securities, LLC, an affiliate of the Company (“Gladstone Securities”), will serve as the Company’s exclusive dealer manager in connection with the Offering. The Notes are being offered by Gladstone Securities on a “reasonable best efforts” basis pursuant to a Dealer Manager Agreement dated as of May 22, 2020, entered into between the Company and Gladstone Securities (the “Dealer Manager Agreement”).

The Company expects that the Offering will terminate on the date that is the earlier of (1) July 1, 2025 (unless earlier terminated or extended by our Board of Directors) and (2) the date on which all $350 million of Notes offered are sold. There is currently no public market for the Notes. The Company intends to apply to list the Notes on Nasdaq or another national securities exchange within one calendar year of the Termination Date, however, there can be no assurance that a listing will be achieved in such timeframe, or at all.  We do not expect a public market to develop before the Notes are listed on Nasdaq or another national securities exchange, if at all.

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and ...

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