New Issue: Gladstone prices $65 million $25-par cumulative term preferreds due 2025 at 6.375%

By James McCandless

San Antonio, Aug. 15 – Gladstone Investment Corp. priced a $65 million offering of $25-par series E cumulative term preferred stock due 2025 with a dividend of 6.375%, according to a term sheet.

There is a $9.75 million greenshoe.

BMO Capital Markets Corp., Janney Montgomery Scott LLC and Ladenburg Thalmann & Co. Inc. are the joint bookrunners. B. Riley FBR, Inc. is a lead manager.

The preferreds are redeemable after two years at par.

Gladstone plans to use the proceeds to redeem all outstanding shares of its series B term preferred stock and series C term preferred stock.

The company intends to list the preferreds on the Nasdaq under the symbol “GAINL.”

Gladstone Investment is a McLean, Va.-based private equity fund.

Issuer:	Gladstone Investment Corp.
Description:	Series E cumulative term preferred stock
Amount:	$65 million, or 2.6 million shares
Greenshoe:	$9.75 million, or 390,000 shares
Maturity:	Aug. 31, 2025
Bookrunners:	BMO Capital Markets Corp., Janney Montgomery Scott LLC and Ladenburg Thalmann & Co. Inc.
Lead Manager:	B. Riley FBR, Inc.
Co-managers:	J.J.B. Hilliard W.L. Lyons, LLC, Wedbush Securities Inc., William Blair & Co., LLC, National Securities Corp. and Boenning and Scattergood, Inc.
Dividend:	6.375%
Price:	Par of $25.00
Call:	On or after Aug. 31, 2020 at par
Pricing date:	Aug. 15
Settlement date:	Aug. 22
Distribution:	SEC Registered
Listing:	Nasdaq: GAINL

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