Gladstone Investment Corporation announced that it will redeem all outstanding 8.00 % notes due 2028 on December 16, 2025. The redemption will be executed at 100 % of the principal amount plus accrued and unpaid interest, totaling $74.75 million. UMB Bank, National Association, will act as trustee and deliver the redemption notice to all registered holders.
The early retirement of the 8 % notes will lower Gladstone’s long‑term debt load and reduce its interest expense, because the fixed‑rate notes carry a higher coupon than the company’s current variable‑rate debt. By shifting the debt profile toward more flexible, interest‑rate‑floor‑backed loans, the company aligns its capital structure with its buyout strategy and improves cash‑flow predictability.
Gladstone’s liquidity position remains strong. The company has a $200 million revolving credit facility, although the exact amount available for the redemption is not publicly confirmed. The most recent asset‑coverage ratio reported was 261.9 % as of June 30, 2022; no current figure is available, but the historical ratio indicates a solid cushion. These resources give the company confidence to fund the redemption without compromising its investment pipeline.
The redemption is part of a broader debt‑management plan that follows a recent financing round in which Gladstone priced $60 million of 6.875 % notes due 2028. Proceeds from that offering are earmarked for repaying borrowings under the revolving credit facility, funding new investments, and supporting general corporate purposes, further strengthening the company’s balance sheet.
By retiring higher‑cost fixed‑rate debt, Gladstone frees up capital that can be deployed into new acquisitions or to refinance other obligations. The move also signals the company’s intent to maintain a lean, adaptable debt structure, which is essential for a business that focuses on lower‑middle‑market buyouts. Overall, the redemption supports the firm’s long‑term strategy of balancing growth opportunities with disciplined capital management.
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