Gladstone Investment Corporation (Nasdaq: GAIN), a publicly traded business development company, has launched a continuous public offering of up to $350 million of its 6.00 percent notes due 2040. The company is only offering up to $200 million of the notes under the prospectus supplement and intends to file a new shelf registration statement and a related supplement by July 2022 to offer the entire principal amount.
Gladstone Investment intends to use the proceeds from the offering to repay existing debt, to make investments in accordance with its investment objectives and strategy, and for other general corporate purposes. A portion may be used to redeem the outstanding series of preferred stock, the company said.
Notes are priced at $25.00 each, and the maximum selling commissions and the dealer manager fee will equal 6.0 percent and 3.0 percent, respectively. There is a minimum purchase of $5,000, and the notes will mature on November 1, 2040.
Of the $200 million in notes offered under the existing prospectus supplement, the company expects up to $177 million in net proceeds, after paying dealer manager fees and selling commissions, assuming all notes are sold.
Gladstone Securities LLC will serve as the exclusive dealer manager of the offering, and Timbrel Capital LLC is acting as national accounts manager.
Gladstone expects that the offering will terminate on either July 1, 2025, or when all notes are sold, whichever is earlier. The company plans to list the notes on Nasdaq or another national securities exchange within one calendar year of the termination date.
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.
The company’s affiliated broker dealer, Gladstone Securities, serves as the dealer manager for Gladstone Investment Corporation, Gladstone Land Corporation and Gladstone Commercial Corporation. In addition to the notes offering, Gladstone Securities also currently serves as dealer manager for the Gladstone Commercial Corporation $500 Million 6.0% Series F Cumulative Redeemable Preferred Stock and the Gladstone Land Corporation $500 Million 6.0% Series C Cumulative Redeemable Preferred Stock offerings.