Gladstone plans to repay revolver debt with proceeds from new notes

By Sarah Lizee

Olympia, Wash., Nov. 1 – Gladstone Capital Corp. intends to repay a portion of the amount outstanding under its revolving credit facility using proceeds from a new $40 million offering of $25-par notes, according to a press release.

As of Nov. 1, there was $110.8 million outstanding under the revolver, according to a 497 filing with the Securities and Exchange Commission.

Borrowings bear interest at one-month Libor plus 285 basis points.

There is an unused commitment fee of 50 bps when the average unused commitment amount for the reporting period is less than or equal to 50%, 75 bps when the average unused commitment amount for the reporting period is greater than 50% but less than or equal to 65%, and 100 bps when the average unused commitment amount for the reporting period is greater than 65%.

The credit facility has a revolving period end date of Jan. 15, 2021. If the revolver is not renewed or extended by that date, all principal and interest will be due and payable on or before April 15, 2022.

The company said it intends to reborrow under the revolver to make investments in portfolio companies.

Proceeds from the new notes will also be used to fund new investment opportunities and for other general corporate purposes.

Gladstone is a McLean, Va.-based real estate investment trust.

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