Gladstone Investment Corporation Announces Amendment to Credit Facility: Increased Facility Size, Extended Maturity, Improved Pricing, and Asset Coverage Update
- Increases the facility size from
$165.0 million to $200.0 million, which may be expanded to $300.0 millionthrough additional commitments;
- Extends the revolving period from
November 15, 2019to August 22, 2021;
- Extends the maturity date from
November 15, 2021to August 22, 2023, at which time all principal and interest will be due and payable;
- Reduces the interest rate margin by 30 basis points from 3.15% to 2.85% during the revolving period (ending
August 21, 2021), after which the margin increases to 3.10% for a one year period, and to 3.35% for the remaining term of the Credit Facility thereafter;
- Changes the unused commitment fee from 0.50% on the portion of the total unused commitment amount that is less than or equal to 45% of the total commitments and 0.80% on the total unused commitment amount that is greater than 45% to: 0.50% when the average unused commitment amount for the reporting period is equal to or less than 50%, 0.75% when the average unused commitment amount for the reporting period is greater than 50%, but less than or equal to 65%, and 1.00% when the average unused commitment amount for the reporting period is greater than 65%; and
- Reduces the minimum asset coverage with respect to senior securities representing indebtedness from 200% to 150% (or such percentage as may be set forth in the Investment Company Act of 1940, as amended).
Investor Relations Inquiries: Please visit www.gladstone.com or +1-703-287-5893.
The statements in this press release may be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on our current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in our filings with the
Source: Gladstone Investment Corporation