By Stephanie N. Rotondo
Portland, Ore., Oct. 28 - Gladstone Capital Corp. brought a $35 million offering of 7.125% series 2016 $25-par term preferred shares on Friday, according to a market source.
Pricing was in the middle of talk. Plans for the deal were announced Monday.
The company priced 1.4 million preferreds at $25 each.
The preferreds mature Dec. 31, 2016 but can be redeemed at the company's option after Dec. 31, 2012 at a redemption price equal to par plus a premium and accrued dividends.
Additionally, the company can elect to redeem a portion of the preferreds should its asset coverage ratio fall below 200%.
Dividends are payable monthly, beginning Dec. 31.
Settlement is expected Nov. 4.
Janney Montgomery Scott LLC is lead manager for the offering. BB&T Capital Markets; J.J.B. Hilliard, W.L. Lyons, LLC; Wunderlich Securities, Inc.; Ladenburg Thalmann & Co. Inc. and Boenning & Scattergood, Inc. are co-managers.
The preferreds will be listed on the New York Stock Exchange under the symbol "GLADPrA."
Proceeds from the underwritten public offering will be used to pay down debt, including a portion of the outstanding balance on the company's credit line.
Gladstone Capital is a McLean, Va.-based specialty finance company.
| Issuer: | Gladstone Capital Corp.
|
| Securities: | Series 2016 term preferred shares
|
| Amount: | $35 million
|
| Preferreds: | 1.4 million
|
| Maturity: | Dec. 31, 2016
|
| Dividend: | 7.125%, payable monthly
|
| Price: | $25 per preferred
|
| Call option: | After Dec. 31, 2012 or if asset coverage ratio falls below 200%
|
| Bookrunner | Janney Montgomery Scott LLC
|
| Co-managers: | BB&T Capital Markets; J.J.B. Hilliard, W.L. Lyons, LLC; Wunderlich Securities, Inc.; Ladenburg Thalmann & Co. Inc.; and Boenning & Scattergood, Inc.
|
| Pricing date: | Oct. 28
|
| Settlement date: | Nov. 4
|
| Listing: | NYSE: GLADPrA
|
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