Gladstone Capital Corporation Announces Proposed Convertible Notes Offering
Gladstone Capital Corporation (Nasdaq:GLAD) has announced a registered public offering of $110 million in unsecured convertible notes due 2030. The underwriter will have an option to purchase an additional $16.5 million in notes.
The notes will pay interest semi-annually and can be converted into cash, GLAD common stock, or a combination of both at the company's discretion. The company plans to use the proceeds to repay a portion of its revolving credit facility debt and for general corporate purposes. Oppenheimer & Co. Inc. is serving as the sole book-running manager for the offering.
Gladstone Capital Corporation (Nasdaq:GLAD) ha annunciato un'offerta pubblica registrata di 110 milioni di dollari in obbligazioni convertibili non garantite con scadenza 2030. L'underwriter avrà un'opzione per acquistare ulteriori 16,5 milioni di dollari in titoli.
Le obbligazioni corrisponderanno interessi semestrali e potranno essere convertite in contanti, azioni ordinarie GLAD o in una combinazione di entrambi a discrezione della società. Il ricavato verrà impiegato per rimborsare parte del debito del suo linea di credito revolving e per finalità aziendali generali. Oppenheimer & Co. Inc. agisce come unico book-running manager dell'offerta.
Gladstone Capital Corporation (Nasdaq:GLAD) ha anunciado una colocación pública registrada de 110 millones de dólares en pagarés convertibles no garantizados con vencimiento en 2030. El suscriptor tendrá la opción de adquirir 16,5 millones de dólares adicionales en pagarés.
Los pagarés pagarán intereses semestrales y podrán convertirse en efectivo, acciones ordinarias de GLAD o en una combinación de ambos a discreción de la compañía. La empresa planea usar los fondos para amortizar parte de la deuda de su línea de crédito revolvente y para fines generales corporativos. Oppenheimer & Co. Inc. actúa como único book-running manager de la oferta.
Gladstone Capital Corporation (Nasdaq:GLAD)는 만기 2030년인 무담보 전환사채 1억 1천만 달러의 등록 공모를 발표했습니다. 인수인은 추가로 1,650만 달러 어치의 사채를 매입할 수 있는 옵션을 보유합니다.
해당 사채는 반기별 이자를 지급하며 회사의 재량으로 현금, GLAD 보통주 또는 이 둘의 조합으로 전환될 수 있습니다. 회사는 조달금으로 회전형 신용대출 일부 상환과 일반 기업 목적에 사용할 계획입니다. Oppenheimer & Co. Inc.가 이번 공모의 단독 북러닝 매니저로 참여합니다.
Gladstone Capital Corporation (Nasdaq:GLAD) a annoncé une offre publique enregistrée de 110 millions de dollars en billets convertibles non garantis arrivant à échéance en 2030. Le souscripteur disposera d'une option pour acquérir 16,5 millions de dollars supplémentaires de billets.
Les billets porteront des intérêts semestriels et pourront être convertis en espèces, en actions ordinaires GLAD ou en une combinaison des deux, à la discrétion de la société. La société prévoit d'utiliser le produit pour rembourser une partie de sa ligne de crédit renouvelable et pour des besoins généraux d'entreprise. Oppenheimer & Co. Inc. agit en tant que unique book-running manager de l'offre.
Gladstone Capital Corporation (Nasdaq:GLAD) hat ein registriertes öffentliches Angebot über 110 Millionen US-Dollar in unbesicherten wandelbaren Schuldverschreibungen mit Fälligkeit 2030 angekündigt. Der Underwriter erhält eine Option zum Erwerb zusätzlicher 16,5 Millionen US-Dollar an Schuldverschreibungen.
Die Schuldverschreibungen zahlen halbjährliche Zinsen und können nach Ermessen des Unternehmens in Bargeld, GLAD-Stammaktien oder eine Kombination aus beidem umgewandelt werden. Das Unternehmen beabsichtigt, die Erlöse zur Rückzahlung eines Teils seiner revolvierenden Kreditfazilität und für allgemeine Unternehmenszwecke zu verwenden. Oppenheimer & Co. Inc. fungiert als alleiniger Book-Running-Manager des Angebots.
- Potential to strengthen balance sheet through debt refinancing
- Flexible conversion terms allowing company discretion in settlement method
- Additional $16.5M option provides buffer for increased capital needs
- Potential dilution for existing shareholders if notes are converted to common stock
- Increased debt obligation with semi-annual interest payments
- New debt may impact company's financial flexibility
Insights
GLAD's $110M convertible notes offering will restructure debt profile while maintaining financial flexibility through conversion options.
Gladstone Capital Corporation (GLAD) has announced a $110 million convertible notes offering with a potential additional $16.5 million if the underwriter exercises its option. These unsecured notes will mature in 2030 with semi-annual interest payments. The most significant feature is the conversion mechanism allowing GLAD to satisfy conversions through cash, stock, or a combination - providing important financial flexibility.
The primary purpose of this offering is to refinance existing debt, specifically to repay a portion of the company's revolving credit facility. This suggests a strategic debt restructuring rather than raising capital for new investments. By replacing revolving credit with longer-term notes, GLAD is extending its debt maturity profile and potentially locking in current interest rates before any future increases.
The conversion feature creates a hybrid security that could be less expensive than straight debt, as investors accept a lower interest rate in exchange for potential equity upside. However, the actual cost advantage depends on the yet-to-be-determined interest rate and conversion premium. For existing shareholders, this offering creates potential dilution risk if the notes are eventually converted to equity, though the company maintains control over the settlement method.
With Oppenheimer serving as the sole book-runner, this appears to be a straightforward offering through established channels. The transaction timing aligns with current market conditions where investors are seeking yield investments with equity participation features.
MCLEAN, VA / ACCESS Newswire / September 8, 2025 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") today announced the commencement of a registered public offering of
The Notes will be unsecured obligations of the Company and will pay interest semi-annually in arrears and will mature in 2030, unless earlier converted, redeemed or repurchased. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election. The interest rate, initial conversion rate, redemption or repurchase rights and other terms of the Notes will be determined at the time of pricing of the offering.
The Company intends to use the net proceeds from this offering to repay a portion of the outstanding indebtedness under its revolving credit facility and for other general corporate purposes.
Oppenheimer & Co. Inc. is acting as sole book-running manager for this offering.
Investors are advised to carefully consider the investment objectives, risks, charges and expenses of the Company before investing. The preliminary prospectus supplement, dated September 8, 2025, and the accompanying prospectus, dated January 17, 2024, which have been filed with the U.S. Securities and Exchange Commission (the "SEC") contain this and other information about the Company and should be read carefully before investing.
The proposed offering is being conducted pursuant to the Company's effective shelf registration statement that was initially filed with the SEC on December 7, 2023 and declared effective on January 17, 2024 (File No. 333-275934). Copies of the preliminary prospectus supplement relating to this offering and the accompanying prospectus may be obtained, from: Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, NY 10004, by telephone at (212) 667-8055, or by email at EquityProspectus@opco.com.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
About Gladstone Capital Corporation: Gladstone Capital Corporation is a publicly traded business development company that invests in debt and equity securities consisting primarily of secured first and second lien term loans to lower middle market businesses in the United States.
Forward-Looking Statements
This press release contains statements as to the Company's intentions and expectations of the outcome of future events that are forward-looking statements. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These statements relate to the proposed terms of the Notes, the completion, timing and size of the proposed offering of Notes and the anticipated use of the net proceeds by the Company for the repayment of a portion of the outstanding indebtedness under its revolving credit facility and for other general corporate purposes. No assurance can be given that the transaction discussed above will be completed on the terms described, or at all. Completion of the offering on the terms described, and the application of net proceeds, are subject to numerous conditions, many of which are beyond the control of the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For a description of certain risks to which the Company is or may be subject, please refer to the factors discussed under the captions "Forward-Looking Statements" and "Risk Factors" included in the Company's filings with the SEC (accessible at www.sec.gov).
CONTACT: For further information: Gladstone Capital Corporation, 703-287-5898.
SOURCE: Gladstone Capital Corporation
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FAQ
What is the size of Gladstone Capital's (GLAD) convertible notes offering in 2025?
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How will GLAD settle the conversion of these notes?
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