Gladstone Capital to Sell New Baby Bond

BDC Gladstone Capital (GLAD) is selling a new baby bond with a maturity date in 2024.

GLAD had just redeemed a term preferred (GLADN) on 10/2/2019 which carried a coupon of 6%.

Being a debt issue there will be no OTC Grey market trading of the new issue.

The permanent ticker will be GLADL when it finally hits the permanent trading exchange.

The company currently has a 6.125% baby bond outstanding which can be seen here.

The preliminary prospectus can be read here.

14 thoughts on “Gladstone Capital to Sell New Baby Bond”

  1. MCLEAN, Va., Oct. 08, 2019 (GLOBE NEWSWIRE) — Gladstone Capital Corporation (GLAD) (the “Company”) today announced that it priced a public offering of $33,750,000 aggregate principal amount of 5.375% Notes due 2024 (the “Notes”) on October 7, 2019

      1. I just went to full allocation for WRB-B. The Ex-div date is this Friday. Pays 5.625% which is above the market rate for BAA2 in this current environment. If they call it, I got a whopping $.05 cents a share. But if they don’t, I will hold and take the 5.625% from this point forward until they call it.

        Thanks to Tim for initially spotting this one.

        1. Steve A , I did the same, but make .04 instead on 1300 shs.
          I too will hold what i deem a safe bet until called.

          We owe Tim a Root Beer

      1. Why do you say this? It’s a 5 year piece of paper and when compared to GLADD, it seems reasonable.

        1. I became a spoiled brat on all of their previous 6-6.5% offerings I owned for years. Taking a whole “point plus” cut, pinches a nerve for me. For the risk you’re taking with GLAD, to me, they need to have a 6.00% min rate for me to be interested.

          I do own GLADD (from par price) and GOODN, having liquidated all my other GLAD family offerings months ago.


          1. correction, i got into GLADD at the amazing price of $1.83 ago from where it is today… so the initial yield was 6.3% for me

            no plans to sell it for a few more months

  2. Just a reminder folks, Gladstone Capital is the BDC while Gladstone Commercial is the REIT. As a BDC, there should be a covenant requiring them to maintain an asset coverage ratio.

    1. Yes you are correct Landlord. Folks do ten to forget that Gladstone Commercial and Gladstone Land are REITs

    2. There is a 4th Gladstone Company – Gladstone Investment (GAIN) – that is a BDC as well. So, in summary, you have:

      Gladstone Capital (NASDAQ: GLAD) BDC
      Gladstone Investment (NASDAQ: GAIN) BDC
      Gladstone Commercial (NASDAQ: GOOD) REIT
      Gladstone Land (NASDAQ: LAND) REIT

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