Gladstone Investment Corporation Prices Public Offering of 4.875% Notes due 2028
Gladstone Investment Corporation (Nasdaq: GAIN) announced a public offering of $117 million in 4.875% Notes due 2028. The notes will mature on November 1, 2028, and interest will be paid quarterly starting November 1, 2021. The Company plans to use the proceeds to redeem its outstanding 6.375% Series E Preferred Stock, repay revolving credit, fund new investments, and for general corporate purposes. The offering includes a 30-day option for underwriters to purchase an additional $17.6 million of notes. Listing is expected on the Nasdaq Global Select Market under the symbol GAINZ.
- Proceeds will be used to redeem high-interest preferred stock, reducing future interest expenses.
- Funding new investment opportunities may lead to growth and enhanced earnings potential.
- Issuance of new notes may lead to shareholder dilution.
- Market reaction to debt offerings can often be negative, affecting stock price.
MCLEAN, VA / ACCESSWIRE / August 11, 2021 / Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company") today announced that it priced a public offering of
The closing of the transaction is subject to customary closing conditions and the Notes are expected to be delivered on or about August 18, 2021.
The Company intends to use the net proceeds from this offering to redeem all of its outstanding
Investors are advised to carefully consider the investment objectives, risks and charges and expenses of the Company before investing. The preliminary prospectus supplement, dated August 11, 2021, and the accompanying prospectus, dated July 24, 2019, 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. 333-232124).
To obtain a copy of the preliminary prospectus supplement for this offering and the accompanying prospectus, please contact: Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 23rd Floor, New York, NY 10004 or by email at FixedIncomeProspectus@opco.com.
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.
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 Investment Corporation, 703-287-5893.
SOURCE: Gladstone Investment Corporation
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FAQ
What is the amount of the public offering by Gladstone Investment Corporation (GAIN)?
When will the 4.875% Notes due 2028 mature?
How does Gladstone intend to use the proceeds from the offering?
What is the interest rate on the 4.875% Notes issued by Gladstone (GAIN)?
When is the expected delivery date for the Notes from Gladstone?
