Gladstone Capital Corp. priced its public offering of about $33.8 million aggregate principal amount of 5.375% notes due Nov. 1, 2024.
The company also granted the underwriters a 30-day option to buy up to an additional roughly $5.1 million in aggregate principal amount of notes to cover any overallotments.
Gladstone Capital plans to use the net proceeds to repay a portion of the amount outstanding under its credit facility, to fund new investment opportunities, and for other general corporate purposes.
The notes are expected to be delivered on or about Oct. 10.
The company may redeem the notes in whole or in part at any time or from time to time at its option on or after Nov. 1, 2021. The notes will bear interest at a rate of 5.375% per year payable quarterly on Feb. 1, May 1, Aug. 1 and Nov. 1 of each year, starting Nov. 1, 2019.
Gladstone Capital expects to list the notes on the Nasdaq Global Select Market under the trading symbol GLADL within 30 days of issuance.
Janney Montgomery Scott, Ladenburg Thalmann & Co. Inc. and B. Riley FBR are acting as joint book-running managers for the offering, while William Blair and Wedbush Securities are acting as co-managers.
