Gladstone Investment Corporation (NASDAQ:GAIN) Files An 8-K Entry into a Material Definitive Agreement
Item1.01
| Entry into a Material Definitive Agreement. |
On November16, 2016, Gladstone Investment Corporation (the
Company), through its wholly-owned subsidiary Gladstone Business
Investment, LLC, entered into Amendment No.2 to its Fifth Amended
and Restated Credit Agreement providing for a $165 million
revolving line of credit (the Credit Facility) arranged by
KeyBank National Association , as lender, managing agent and
administrative agent, Alostar Bank of Commerce, Manufacturers and
Traders Trust, East West Bank, Chemical Bank (as successor in
interest to Talmer Bank and Trust) and Customers Bank, as lenders
and managing agents.
Amendment No.2 amended the Credit Facility to, among other
things:
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extend the revolving period by over two years to November15, 2019; |
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extend the maturity date by over two years to November15, 2021, at which time all principal and interest will be due and payable unless the Credit Facility is extended as described below; |
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lower the interest rate margin by 10 basis points to 3.15% until November15, 2019, with the margin then increasing to 3.40% for the period from November15, 2019 to November15, 2020, and increasing further to 3.65% thereafter; |
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change the unused commitment fee from 0.50% of the total unused commitment amount to 0.50% on the portion of the total unused commitment amount that is less than or equal to 45% of the total commitments and 0.80% on the total unused commitment amount that is greater than 45%.; |
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reduce the current commitment amount to $165 million from $185 million and retain the ability to expand to a total facility amount of $250 million through additional commitments of new or existing lenders; |
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change the static advance rate of 50% to multi-tiered advance rates up to 64% based on collateral quality; and |
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provide two one-year extension options that may be exercised on or before the first and second anniversary of this amendment, subject to approval by all lenders. |
The Credit Facility continues to include customary terms,
covenants, events of default and constraints on borrowing
availability based on collateral tests for a credit facility of
its size and nature. In connection with this amendment, the
Company incurred fees of approximately $1.4 million. As of
November15, 2016, prior to the closing of this amendment, the
Company had $60.0 million of borrowings outstanding under its
existing revolving credit facility.
The foregoing summary of the Credit Facility is not complete and
is qualified in its entirety by reference to Amendment No.2,
which is filed as Exhibit 10.1 to this Current Report on Form 8-K
and incorporated by reference herein. The Company also issued a
press release announcing the amendment. A copy of the press
release is attached hereto as Exhibit 99.1 and is incorporated by
reference herein.
Item2.03. Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.
The information set forth under Item1.01 is hereby incorporated
by reference into this Item2.03.
Item9.01. |
Financial Statements and Exhibits |
(c) |
Exhibits |
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| 10.1 |
Amendment No. 2 to Fifth Amended and Restated Credit Agreement, dated as of November 16, 2016, by and among Gladstone Business Investment, LLC, as Borrower, Gladstone Management Corporation, as Servicer, Keybank National Association, as lender, managing agent and administrative agent, Alostar Bank of Commerce, Manufacturers and Traders Trust, East West Bank, Chemical Bank (as successor in interest to Talmer Bank and Trust) and Customers Bank, as lenders and managing agents. |
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| 99.1 |
Press Release issued by Gladstone Investment Corporation dated November 17, 2016. |
About Gladstone Investment Corporation (NASDAQ:GAIN)
