Business development company Gladstone Capital (NASDAQ:GLAD) has announced a new offering of baby bonds with a maturity date of 2023. Final pricing has not been announced
This is something new and different from a BDC that has historically issued term preferreds. Unlike the term preferreds that paid monthly dividends this issue will pay quarterly interest–we prefer monthly, but we have an interest just the same.
The new issue will trade with a ticker of GLADD when they begin to trade–there will likely be no OTC Grey market trading.
Remember the issue will be only required to maintain an asset coverage ratio of 150% effective 4/10/2019 meaning we have lost a little safety with the company.
Thanks to Eugene for the heads up–he watches these items closely.