Business development company (BDC) Gladstone Investment (GAIN) has announced they will be selling a new issue of baby bonds.
The company will sell the baby bonds, which will carry the ticker of GAINN, to redeem their 6.25% term preferreds (GAINM) currently outstanding, which have been redeemable since 2018. The new issue will have a maturity date in 2026.
There are few details known on the new issue yet as the SEC paperwork has not yet been filed–so I am relying on the company press release which can read here.
8 thoughts on “BDC Gladstone Investment Selling Baby Bonds”
Price talk on the new GAIN bond is 5.125%-5.25%
MCLEAN, VA / ACCESSWIRE / February 24, 2021 / Gladstone Investment Corporation (GAINM) (NASDAQ:GAIN) (the “Company”) today announced that it priced a public offering of $111,250,000 aggregate principal amount of 5.00% Notes due 2026 (the “Notes”) on February 23, 2021. The Notes will mature on May 1, 2026, and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after May 1, 2023. The Notes will bear interest at a rate of 5.00% per year payable quarterly on February 1, May 1, August 1 and November 1 of each year, beginning May 1, 2021. The Company also granted the underwriters a 30-day option to purchase up to an additional $16,687,500 in aggregate principal amount of Notes to cover overallotments, if any. The Company expects to list the Notes on the Nasdaq Global Select Market under the trading symbol “GAINN” within 30 days of issuance. Janney Montgomery Scott LLC, BTIG, LLC, B. Riley Securities, Inc., Ladenburg Thalmann & Co. Inc., and Oppenheimer & Co. Inc. are acting as joint book-running managers for this offering. Wedbush Securities Inc. is acting as co-manager for this offering.
The closing of the transaction is subject to customary closing conditions and the Notes are expected to be delivered on or about March 2, 2021.
The Company intends to use the net proceeds from this offering to redeem all of its outstanding 6.25% Series D Cumulative Term Preferred Stock due 2023, to repay a portion of the amount outstanding under its revolving credit facility, to fund new investment opportunities, and for other general corporate purposes.
Sorry to see it go. GAINL callable as well if I’m not mistaken.
This must have been a surprise. Not sure what caused the surge yesterday. I had a sell order out there at 25.75 and they took all of mine yesterday. I ran into some dumb luck. I picked them up last Summer. I like the monthly pay, so will have to see what the rates are. People are clambering for yield and was glad that greed over took them and bought them at such a high price.
If you like the company, monthly payer GAINL has a 6.375% coupon and matures in 2025.
Per QOL, GAINL can be called. With a slightly lower coupon, I would have guessed that M was somewhat protected. I’ve lost track of how many call/redemption notices I’ve received the last 2 months.