Gladstone Investment Enters into Fifth Supplemental Indenture for $126.5 Million Notes due 2030

On December 17, 2024, Gladstone Investment Corporation (NASDAQ: GAIN) disclosed in an 8-K filing a significant financial move. The company, in connection with a previously announced public offering, signed a Fifth Supplemental Indenture with UMB Bank, National Association, as trustee. This Indenture relates to the issuance, offer, and sale of $126,500,000 aggregate principal amount of its 7.875% Notes due 2030.

The Notes are structured to mature on February 1, 2030, unless previously redeemed or repurchased as per their terms. With an interest rate of 7.875% per annum, interest on the Notes will be paid on February 1, May 1, August 1, and November 1 of each year, starting on February 1, 2025. These Notes stand as the company’s direct unsecured obligations and hold a pari passu ranking with existing and future unsecured, unsubordinated indebtedness.

Redemption of the Notes, either in whole or in part, can be done at the Company’s discretion on or after February 1, 2027, upon meeting specific notice provisions. The Indenture also entails various covenants, including compliance requirements and divulging financial information if the Company no longer falls under the reporting requirements of the Securities Exchange Act of 1934, as amended.

The offering and sale of these Notes were pursuant to the Company’s effective shelf registration statement on Form N-2, supported by several key documents. The net proceeds from this offering are planned to be utilized by the company for a variety of purposes, including repayment of a portion of the amount outstanding under its credit facility, funding new investment opportunities, and general corporate objectives.

This move enables Gladstone Investment to diversify its financial structure and strategic positioning. The full details of this transaction and its implications can be found in the filed exhibits along with the 8-K form.

This article should not be considered as an offer to sell or a solicitation of an offer to buy any securities. The sale or purchase of these securities is subject to compliance with relevant securities laws. The transaction in question was successfully completed on December 17, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Gladstone Investment’s 8K filing here.

Gladstone Investment Company Profile

Gladstone Investment Corporation is business development company, specializes in lower middle market, mature stage, buyouts; refinancing existing debt; senior debt securities such as senior loans, senior term loans, lines of credit, and senior notes; senior subordinated debt securities such as senior subordinated loans and senior subordinated notes; junior subordinated debt securities such as subordinated notes and mezzanine loans; limited liability company interests, and warrants or options.