Gladstone Closes Public Offering Of 2.2 Mln Shares Of Its 6.75% Series 2021

(RTTNews) - Gladstone Capital Corp. (GLAD) said that on May 20, 2014 it closed its previously announced public offering of 2.2 million shares of its newly-issued 6.75 percent Series 2021 Term Preferred Shares at a public offering price of $25.00 per share.

Simultaneously with the closing of the offering, the underwriters fully exercised their option to purchase an additional 240,000 shares of the Series 2021 Term Preferred Shares on the same terms.

This resulted in a total issuance of 2.44 million shares for gross proceeds of $61.0 million and net proceeds of around $58.5 million, after payment of underwriting discounts, commissions and offering expenses.

The Series 2021 Term Preferred Shares began trading on the NASDAQ Global Select Market on May 16 under the symbol "GLADO."

The Series 2021 Term Preferred Shares are mandatorily redeemable in June 2021 at $25.00 per share.

The company intends to use the net proceeds from this offering to voluntarily redeem all outstanding shares of its 7.125 percent Series 2016 Term Preferred Shares on or after May 23, with any remaining proceeds to pay down its revolving line of credit and for other general corporate purposes.