Gladstone Capital Corporation Announces Closing of Offering of 2,070,000 shares of its 6.00% Series 2024 Term Preferred Stock...
27 September 2017 - 10:05PM
Gladstone Capital Corporation (NASDAQ:GLAD) (the “Company”)
announced that today it closed its previously announced public
offering of 1,800,000 shares of its newly-issued 6.00% Series 2024
Term Preferred Stock (the “Series 2024 Term Preferred Stock”) at a
public offering price of $25.00 per share. Simultaneously with the
closing of the offering, the underwriters fully exercised their
option to purchase an additional 270,000 shares of Series 2024 Term
Preferred Stock on the same terms and conditions solely to cover
over-allotments, resulting in a total issuance of 2,070,000 shares
for gross proceeds of $51.8 million and net proceeds of
approximately $49.8 million, after payment of underwriting
discounts, commissions and offering expenses.
The Company anticipates its Series 2024 Term
Preferred Stock will trade on the NASDAQ Global Select Market under
the symbol GLADN. The Series 2024 Term Preferred Stock is
mandatorily redeemable in September 2024 at $25.00 per share plus
an amount equal to accumulated but unpaid dividends and
distributions, if any, up to, but excluding, the date of
redemption. Janney Montgomery Scott LLC and Ladenburg
Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann
Financial Services Inc. (NYSE MKT:LTS) served as joint book-running
managers. FBR Capital Markets & Co., a B. Riley Financial
Company, served 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 served 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 on or after September 29, 2017. This offering was made
pursuant to the Company’s existing shelf registration statement,
previously filed with the Securities and Exchange Commission
(“SEC”). A final prospectus supplement related to the offering was
filed with the SEC on September 21, 2017 and is available on the
SEC website at www.sec.gov or by contacting Janney Montgomery Scott
LLC, 1717 Arch Street, Philadelphia, PA 19103, Attention: Taxable
Fixed Income Department or prospectus@janney.com. The
prospectus supplement, dated September 19, 2017, and accompanying
prospectus, dated February 6, 2017, each of which has been filed
with the SEC, contain a description of these matters and other
important information about the Company and should be read
carefully before investing. Investors are advised to carefully
consider the investment objectives, risks and charges and expenses
of the Company before investing.
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. The application of net
proceeds is 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, 703-287-5893.
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