Gladstone Investment to repay credit facility borrowings via new notes

By Marisa Wong

Los Angeles, Aug. 11 – Gladstone Investment Corp. intends to repay a portion of the amount outstanding under its credit facility using proceeds from an offering of $25-par notes due Nov. 1, 2028, according to a 424B2 filing with the Securities and Exchange Commission.

As of Aug. 9, Gladstone had about $47.7 million of debt outstanding under the credit facility.

Advances generally bear interest at 30-day Libor, subject to a floor of 0.5%, plus a margin of 285 basis points that steps up to 310 bps for the period from Feb. 29, 2024 to Feb. 28, 2025 and to 335 bps from Feb. 28, 2025 through maturity on Feb. 28, 2026.

Gladstone said it intends to re-borrow under its credit facility to make investments in portfolio companies and for other general corporate purposes.

Proceeds from the new notes will also be used to redeem the company’s series E term preferred stock, to fund new investment opportunities and for other general corporate purposes.

Gladstone is an externally managed closed-end non-diversified management investment company based in McLean, Va.

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