Gladstone Investment Prices New Term Preferred

As noted yesterday Gladstone Investment (NASDAQ:GAIN), a business development company has priced a new term preferred with a coupon of 6.375% with a mandatory redemption in 2025.

Additionally they have announced the calls on the 6.75% and 6.50% term preferred issues which are currently outstanding.

The new issue will be cumulative and pay monthly dividends–being a BDC the dividends will not be qualified.

The pricing term sheet can be found here.

We will be purchasing this new issue to replace the redeemed issues.

The new issue will trade on the OTC Grey market as soon as today under the ticker GLDZP.


12 thoughts on “Gladstone Investment Prices New Term Preferred”

  1. Lower yield, but isn’t the credit quality also lower as the asset coverage ratio goes from 200% to 150%?

    1. Yes Roger I think you are correct and in fact that is why they are calling the 2 issues. I haven’t scanned the prospectus yet, but they can lower the leverage in April 2019.

      It is the world we live in–lower coupons and we investors essentially incur more risk with the lower leverage ratio–regulators will live to regret lowering the leverage ratio required the next time the economy goes into a deep recession.

  2. Hi there, final Gladstone Investment (NASDAQ:GAIN) 6 3/8% due 2025 symbol will be GAINL. Wishing you profitable investing, Nomad

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