Gladstone greenshoe exercised, raising preferreds to $40.4 million

New York, Dec. 4 – Gladstone Investment Corp. said the underwriters fully exercised the $5.4 million over-allotment option for its offering of 6.75% series B cumulative term preferred stock due 2021, raising the total size of the deal to $40.4 million.

The company originally priced $35 million of the preferreds on Nov. 5, selling 1.4 million shares at par of $25.00.

A further 216,000 preferreds are added to the offering with the exercise of the greenshoe.

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

Dividends will be payable monthly.

The preferreds mature on Dec. 31, 2021 and are callable starting Dec. 31, 2017 at par plus accrued dividends.

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 business development company that seeks to make debt and equity investments in small and medium-sized businesses in the United States in connection with acquisitions, changes in control and recapitalizations.

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