Gladstone Investment Corp. Closes $50M Note Offering, Tender Results

TL;DR

GAIN just raised $50M with new 8% notes and is buying back a chunk of its 5% notes due 2026.

AI Summary

Gladstone Investment Corporation (GAIN) announced on May 14, 2024, the closing of its previously announced offering of $50 million aggregate principal amount of 8.00% notes due 2029. The company also announced the early tender results for its cash tender offer to purchase up to $50 million aggregate principal amount of its outstanding 5.00% notes due 2026. Gladstone Investment Corporation expects to repurchase approximately $49.7 million of the 2026 notes.

Why It Matters

This filing indicates Gladstone Investment Corporation is actively managing its debt by issuing new notes and repurchasing older ones, potentially optimizing its capital structure and interest expenses.

Risk Assessment

Risk Level: medium — The company is engaging in debt financing and tender offers, which involves financial risk and market sensitivity.

Key Numbers

• $50.0M — New Notes Offering (Gladstone Investment Corporation closed an offering of 8.00% notes due 2029.)
• $50.0M — Tender Offer Cap (Maximum principal amount of 5.00% notes due 2026 the company sought to repurchase.)
• $49.7M — Notes Repurchased (Approximate principal amount of 5.00% notes due 2026 expected to be repurchased.)
• 8.00% — Interest Rate on New Notes (The coupon rate for the newly issued notes due 2029.)
• 5.00% — Interest Rate on Old Notes (The coupon rate for the notes due 2026 being tendered.)

Key Players & Entities

• Gladstone Investment Corporation (company) — Registrant
• 8.00% notes due 2029 (dollar_amount) — New debt offering
• $50 million (dollar_amount) — Principal amount of new notes and tender offer cap
• 5.00% notes due 2026 (dollar_amount) — Outstanding notes subject to tender offer
• $49.7 million (dollar_amount) — Expected repurchase amount of 2026 notes
• May 14, 2024 (date) — Report date and closing date of note offering

FAQ

Key Financial Figures

• $0.001 — nge on Which Registered Common Stock, $0.001 par value per share GAIN The Nasdaq
• $75 million — r the issuance of up to an aggregate of $75 million of its common stock, par value $0.001 p

Filing Documents

• d838923d8k.htm (8-K) — 35KB
• d838923dex11.htm (EX-1.1) — 175KB
• d838923dex12.htm (EX-1.2) — 175KB
• d838923dex13.htm (EX-1.3) — 175KB
• d838923dex51.htm (EX-5.1) — 11KB
• g838923dsp5.jpg (GRAPHIC) — 8KB
• g838923dsp6.jpg (GRAPHIC) — 5KB
• 0001193125-24-138399.txt ( ) — 903KB
• gain-20240514.xsd (EX-101.SCH) — 4KB
• gain-20240514_def.xml (EX-101.DEF) — 14KB
• gain-20240514_lab.xml (EX-101.LAB) — 23KB
• gain-20240514_pre.xml (EX-101.PRE) — 15KB
• d838923d8k_htm.xml (XML) — 8KB

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 1.1 Sales Agreement, dated as of May 14, 2024, by and among the Company, Gladstone Management Corporation, Gladstone Administration, LLC and Oppenheimer & Co. Inc. 1.2 Sales Agreement, dated as of May 14, 2024, by and among the Company, Gladstone Management Corporation, Gladstone Administration, LLC and B. Riley Securities, Inc. 1.3 Sales Agreement, dated as of May 14, 2024, by and among the Company, Gladstone Management Corporation, Gladstone Administration, LLC and Virtu Americas LLC. 5.1 Opinion of Kirkland & Ellis LLP, dated May 14, 2024. 23.1 Consent of Kirkland & Ellis LLP (included in Exhibit 5.1). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: May 14, 2024 Gladstone Investment Corporation By: /s/ Rachael Easton Rachael Easton Chief Financial Officer & Treasurer

View Full Filing

View this 8-K filing on SEC EDGAR