Gladstone Capital Corporation Prices Offering of 5.125% Notes Due 2026

Rhea-AI Summary

Gladstone Capital Corporation has announced a public offering of $100 million in 5.125% Notes due January 31, 2026. These notes will yield interest paid semi-annually, starting July 31, 2021. Proceeds will be used to redeem existing 6.125% Notes due 2023, reduce credit facility debt, fund new investments, and for general corporate purposes. The transaction is subject to closing conditions, with delivery expected by December 15, 2020. Investors are encouraged to review the prospectus for details and risks associated with this offering.

Positive

• Successful pricing of $100 million in 5.125% Notes indicates strong interest.
• Proceeds used to redeem higher-interest 6.125% Notes could lower interest expenses.
• Funding new investments may enhance future growth for the company.

Negative

• Issuing new debt may increase overall leverage, posing risks.

MCLEAN, VA / ACCESSWIRE / December 8, 2020 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") today announced that it priced a public offering of $100 million aggregate principal amount of 5.125% Notes due 2026 (the "Notes") on December 8, 2020. The Notes will mature on January 31, 2026, and may be redeemed in whole or in part at any time or from time to time at the Company's option at par plus a "make-whole" premium, if applicable. The Notes will bear interest at a rate of 5.125% per year payable semi-annually on January 31 and July 31 of each year, beginning July 31, 2021. Raymond James & Associates, Inc. is acting as sole book-running manager for this offering.

The closing of the transaction is subject to customary closing conditions and the Notes are expected to be delivered on or about December 15, 2020.

The Company intends to use the net proceeds from this offering to redeem all or a portion of its outstanding 6.125% Notes due 2023, repay a portion of the amount outstanding under its 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 December 8, 2020, and the accompanying prospectus, dated February 5, 2019, which will be 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. 333-228720).

To obtain a copy of the prospectus supplement for this offering and the accompanying prospectus, please contact: Raymond James & Associates, Inc., 800 Carillon Parkway, St. Petersburg, Florida 33716, email: prospectus@raymondjames.com or by calling 800-248-8863.

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" and other similar headings included in the Company's filings with the SEC (accessible at www.sec.gov).

CONTACT: For further information: Gladstone Capital Corporation, 703-287-5898.

SOURCE: Gladstone Capital Corporation

View source version on accesswire.com:
https://www.accesswire.com/620018/Gladstone-Capital-Corporation-Prices-Offering-of-5125-Notes-Due-2026

FAQ

What are the details of Gladstone Capital's $100 million Notes offering?

Gladstone Capital priced a public offering of $100 million aggregate principal amount of 5.125% Notes due 2026 on December 8, 2020.

When will the Gladstone Capital Notes mature?

The Notes will mature on January 31, 2026.

What will be done with the proceeds from the Gladstone Capital Notes?

The proceeds will redeem existing 6.125% Notes, repay credit facility debt, fund new investments, and for general corporate purposes.

Who is managing the Gladstone Capital Notes offering?

Raymond James & Associates, Inc. is the sole book-running manager for the offering.