Gladstone gets $140 million amended and restated revolver due 2020

By Angela McDaniels

Tacoma, Wash., May 5 – Gladstone Capital Corp., through its wholly owned subsidiary Gladstone Business Loan, LLC, entered into an amended and restated credit agreement on Friday that provides for a $140 million revolving line of credit, according to an 8-K filing with the Securities and Exchange Commission.

Among other things, the facility was amended to

• Extend the revolving period of the credit facility by three years to Jan. 19, 2019;

• Extend the maturity date of the credit facility by about three years and five months to May 1, 2020, at which time all principal and interest will be due and payable if the credit facility is not extended by Jan. 19, 2019;

• Lower the interest rate margin by 50 basis points to 325 bps until Jan. 19, 2019, with the margin then increasing to 350 bps for the period from Jan. 19, 2019 to Jan. 19, 2020 and increasing further to 375 bps thereafter;

• Allow for expansion by up to $110 million, to a total facility amount of $250 million; and

• Provide a one-year extension option that may be exercised on or before Jan. 4, 2019.

The company incurred roughly $1.2 million of fees in connection with the amendment.

As of April 30, $111.1 million of borrowings were outstanding under the credit facility.

KeyBank NA is the administrative agent.

Gladstone Capital is a McLean, Va.-based specialty finance company.

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