Business Context and Reporting Period
Company: Gladstone Investment Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: August 31, 2018
Event: Voluntary redemption of outstanding Series B and Series C Cumulative Term Preferred Stock.
Key Financial Metrics
- Redemption Price: $25.00 per share (liquidation preference) for both Series B and Series C Term Preferred Stock.
- Total Redemption Cost: Approximately $81.7 million.
- Series E Offering Net Proceeds: Approximately $72.1 million (after underwriting discounts, commissions, and estimated expenses).
- Dividend Status: August dividends were paid to Series B and Series C holders of record on August 21, 2018, prior to redemption.
Material Changes
The Company completed a public offering of 6.375% Series E Cumulative Term Preferred Stock on August 22, 2018. Proceeds from this offering, combined with borrowings under the Company's Fifth Amended and Restated Credit Agreement with KeyBank National Association, funded the full redemption of the Series B (6.75%) and Series C (6.50%) Term Preferred Stock effective August 31, 2018.
Management Commentary and Contingencies
The redemption of the Series B and Series C stock was contingent upon the successful completion of the Series E offering. Management confirmed that the capital raised was sufficient to execute the redemption at the liquidation preference price. The filing does not provide specific details on future guidance, risks, or unusual items beyond the capital restructuring event.
Investor Verification Checklist
- Verify the exact number of Series B and Series C shares redeemed to confirm the $81.7 million aggregate calculation.
- Review the terms of the Fifth Amended and Restated Credit Agreement to understand the specific borrowings used to supplement the Series E proceeds.
- Confirm the impact of this capital restructuring on the Company's future dividend obligations and cost of capital.
- Check subsequent filings for the final closing details of the Series E offering and any remaining debt obligations.