Gladstone Investment selling preferreds; proceeds to pay down debt

By Stephanie N. Rotondo

Phoenix, Nov. 3 – Gladstone Investment Corp. launched an offering of series B cumulative term preferred stock on Monday, according to a press release.

Janney Montgomery Scott LLC is the bookrunner. Sterne Agee & Leach Inc. is the lead manager.

Co-managers are BB&T Capital Markets, J.J.B Hilliard, W.L. Lyons LLC, Wunderlich Securities Inc. and Ladenburg Thalmann & Co. Inc.

Dividends will be payable monthly.

The preferreds come due Dec. 31, 2021, the company said in a prospectus filed with the Securities and Exchange Commission. The company can redeem the preferreds early on Dec. 31, 2017 or upon a change of control at par plus accrued dividends.

The company will also have to redeem as many shares as necessary should its asset coverage ratio fall below 200%.

The new securities will be listed on the Nasdaq under the ticker symbol “GAINO.”

Proceeds will be used to repay borrowings under a credit facility.

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

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