Gladstone Capital Corporation Prices Upsized Public Offering of 5.875% Convertible Notes due 2030
Gladstone Capital Corporation (NASDAQ:GLAD) has priced an upsized public offering of $130.0 million in 5.875% convertible notes due 2030. The notes will be issued at 98.5% of principal value, with an additional $19.5 million overallotment option granted to the underwriter.
The notes will pay interest semi-annually, with an initial conversion rate of 38.4394 shares per $1,000 principal amount (equivalent to $26.02 per share, a 10% premium). The company expects net proceeds of approximately $123.7 million, which will be used to repay revolving credit facility debt and potentially redeem outstanding 5.125% Notes due 2026 and 7.75% Notes due 2028.
Gladstone Capital Corporation (NASDAQ:GLAD) ha collocato un aumento dell'offerta pubblica per 130,0 milioni di dollari di obbligazioni convertibili al 5,875% con scadenza 2030. Le obbligazioni saranno emesse al 98,5% del valore nominale e all'intermediario è stata concessa un'opzione di sovrallocazione aggiuntiva di 19,5 milioni di dollari.
I titoli pagheranno interessi semestrali e prevedono un tasso di conversione iniziale di 38,4394 azioni per ogni 1.000 dollari di valore nominale (pari a 26,02 dollari per azione, +10% rispetto al prezzo). La società prevede proventi netti di circa 123,7 milioni di dollari, che saranno impiegati per rimborsare il debito del plafond di credito revolving e, eventualmente, per rimborsare le obbligazioni in circolazione al 5,125% scadenza 2026 e al 7,75% scadenza 2028.
Gladstone Capital Corporation (NASDAQ:GLAD) ha fijado el precio de una oferta pública ampliada por 130,0 millones de dólares en notas convertibles al 5,875% con vencimiento en 2030. Las notas se emitirán al 98,5% del valor nominal y al suscriptor se le otorgó una opción de colocación adicional de 19,5 millones de dólares.
Las notas pagarán intereses semestrales y tienen una tasa de conversión inicial de 38,4394 acciones por cada 1.000 dólares de principal (equivalente a 26,02 dólares por acción, una prima del 10%). La compañía espera obtener ingresos netos de aproximadamente 123,7 millones de dólares, que se usarán para pagar deuda de su línea de crédito revolvente y, posiblemente, redimir las Notas al 5,125% con vencimiento en 2026 y las Notas al 7,75% con vencimiento en 2028.
Gladstone Capital Corporation (NASDAQ:GLAD)는 2030년 만기 5.875% 전환사채 총 1억 3,000만 달러 규모의 증액 공모 발행 가격을 확정했습니다. 사채는 액면가의 98.5%에 발행되며, 인수인에게 추가로 1,950만 달러의 월옵션이 부여되었습니다.
이 사채는 반기별 이자를 지급하며, 초기 전환비율은 1,000달러당 38.4394주(주당 26.02달러, 프리미엄 10%)입니다. 회사는 순수익을 약 1억 2,370만 달러로 예상하고 있으며, 이 자금은 회전 신용시설 채무 상환 및 필요 시 2026년 만기 5.125% 채권과 2028년 만기 7.75% 채권의 상환에 사용될 예정입니다.
Gladstone Capital Corporation (NASDAQ:GLAD) a fixé le prix d'une émission publique élargie de 130,0 millions de dollars en billets convertibles à 5,875% arrivant à échéance en 2030. Les billets seront émis à 98,5% de la valeur nominale, avec une option de surallocation supplémentaire de 19,5 millions de dollars accordée au souscripteur.
Les billets porteront intérêt semestriellement et présentent un taux de conversion initial de 38,4394 actions pour 1 000 dollars de principal (soit 26,02 dollars par action, prime de 10%). La société prévoit des produits nets d'environ 123,7 millions de dollars, qui serviront à rembourser la dette de la ligne de crédit renouvelable et, éventuellement, à racheter les billets en circulation à 5,125% échéance 2026 et à 7,75% échéance 2028.
Gladstone Capital Corporation (NASDAQ:GLAD) hat den Preis für eine aufgestockte öffentliche Platzierung von 130,0 Mio. USD in 5,875% wandelbaren Schuldverschreibungen mit Fälligkeit 2030 festgelegt. Die Papiere werden zu 98,5% des Nennwerts begeben; dem Underwriter wurde eine Mehrzuteilungsoption über zusätzlich 19,5 Mio. USD eingeräumt.
Die Notes zahlen halbjährliche Zinsen und weisen eine anfängliche Umtauschrate von 38,4394 Aktien je 1.000 USD Nennwert auf (entspricht 26,02 USD je Aktie, ein Aufschlag von 10%). Das Unternehmen rechnet mit Nettoerlösen von rund 123,7 Mio. USD, die zur Rückzahlung von Revolving-Kreditverbindlichkeiten und gegebenenfalls zur Einlösung ausstehender 5,125%-Notes (Fälligkeit 2026) und 7,75%-Notes (Fälligkeit 2028) verwendet werden sollen.
- Upsized offering from $110M to $130M indicates strong investor demand
- Additional $19.5M overallotment option provides flexibility for extra capital
- Conversion premium of 10% protects against immediate dilution
- Opportunity to refinance higher-cost debt (7.75% Notes) with lower 5.875% Notes
- Potential dilution if notes are converted to common stock
- Additional debt burden with $130M principal amount
- Issue price of 98.5% represents a slight discount to par value
Insights
GLAD's $130M convertible notes offering strengthens liquidity while managing debt costs in current interest rate environment.
Gladstone Capital Corporation has successfully priced an upsized public offering of
The
The conversion feature provides flexibility, with an initial conversion price of approximately
The non-callable period until October 2028 provides GLAD with certainty on this financing structure for three years. After this period, the conditional call option (requiring the stock price to reach
With expected net proceeds of
MCLEAN, VA / ACCESS Newswire / September 9, 2025 / Gladstone Capital Corporation (NASDAQ:GLAD) (the "Company") today announced that it priced a registered public offering of
The Notes will be unsecured obligations of the Company and will pay interest semi-annually in arrears on April 1 and October 1 of each year, beginning April 1, 2026. The Notes will mature on October 1, 2030, unless earlier converted, redeemed or repurchased.
Noteholders may convert their Notes at their option at any time prior to the close of business on the business day immediately preceding the maturity date. 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 conversion rate will initially be 38.4394 shares of the Company's common stock per
The Company may not redeem the Notes prior to October 6, 2028. The Company may redeem for cash all or any portion of the Notes (subject to certain limitations), at the Company's option, on a redemption date on or after October 6, 2028 and on or before the 45th scheduled trading day immediately prior to the maturity date if the last reported sale price of the Company's common stock has been at least
If the Company undergoes a fundamental change, then, subject to certain conditions, holders may require the Company to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to
The Company estimates that the net proceeds from the offering will be approximately
Oppenheimer & Co. Inc. is acting as sole book-running manager for the 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"), and the final prospectus supplement, which will be filed with the SEC, contain this and other information about the Company and should be read carefully before investing.
The 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 or the final prospectus supplement relating to the 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 completion of the 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
View the original press release on ACCESS Newswire
FAQ
What is the size and interest rate of GLAD's new convertible notes offering?
What is the conversion price for GLAD's 2030 convertible notes?
How will GLAD use the proceeds from the convertible notes offering?
When can GLAD redeem these convertible notes?
When do GLAD's new convertible notes mature?
