Gladstone Capital Corporation (NASDAQ:GLAD) Files An 8-K Other EventsItem 8.01 Other Events.
The Company confirmed that effective September29, 2017, to Section2.5(c) of the Gladstone Capital Corporation Articles Supplementary Establishing and Fixing the Rights and Preferences of Term Preferred Shares, as well as the Articles Supplementary Establishing and Fixing the Rights and Preferences of Term Preferred Shares, 6.75% Series 2021 Term Preferred Stock and Exhibit A thereto, to the Company’s Articles of Amendment and Restatement, it voluntarily redeemed all 2,440,000 outstanding shares of its 6.75% Series 2021 Term Preferred Stock, at the liquidation preference of $25.00 per share. All holders of record of the Series 2021 Term Preferred Stock on September20, 2017, the record date for the monthly dividend for September declared by the Board of Directors of the Company, also received a distribution in the amount of the monthly distribution, $0.140625, that was paid on September29, 2017.
The Company previously announced its intention to redeem the Series 2021 Term Preferred Stock contingent upon the Company’s successful completion of a public offering of shares of its 6.00% Series 2024 Term Preferred Stock, par value $0.001 per share (the “Series 2024 Term Preferred Stock”) at a public offering price of $25.00 per share, which was completed on September27, 2017. Net proceeds from the Series 2024 Term Preferred Stock offering totaled approximately $49.8million, after payment of underwriting discounts, commissions and estimated offering expenses, and, combined with borrowings under the Company’s Fifth Amended and Restated Credit Agreement with KeyBank National Association, as amended, was sufficient to redeem all outstanding Series 2021 Term Preferred Stock on September29, 2017.
About Gladstone Capital Corporation (NASDAQ:GLAD)
Gladstone Capital Corporation is a closed-end, non-diversified management investment company, operating as a business development company (BDC). The objectives of the Company are to achieve and grow current income by investing in debt securities of established businesses that it believes will provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding indebtedness and make distributions to stockholders that grow over time, and to provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities of established businesses that it believes can grow over time to permit it to sell its equity investments for capital gains. The Company is focused on investing in lower middle-market companies in the United States. It has investments in south, Midwest, west and northeast of the United States. Its portfolio allocation includes debt investments and equity investments.