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Gladstone Capital Announces Monthly Cash Distributions for April, May and June 2020 and Conference Call Date
MCLEAN, Va., April 14, 2020 (GLOBE NEWSWIRE) -- Gladstone Capital Corporation (Nasdaq: GLAD) (the “Company”) announced today that its board of directors
About this update from Gladstone Capital Corporation
[{"type":"text","content":"MCLEAN, Va., April 14, 2020 (GLOBE NEWSWIRE) -- Gladstone Capital Corporation (Nasdaq: GLAD) (the “Company”) announced today that its board of directors declared the following monthly cash distributions for April, May and June 2020 and also announced its plan to report earnings for the second fiscal quarter ended March 31, 2020.\n Cash Distributions: Common Stock: $0.065 per share of common stock for each of April, May and June 2020, payable per the table below. Record DatePayment DateCash DistributionApril 24April 30$0.065May 19May 29$0.065June 19June 30$0.065Total for the Quarter: $0.195 Comments from Gladstone Capital’s President, Bob Marcotte: “We are encouraged by GLAD’s preliminary estimates of our second fiscal quarter financial results based on the underlying performance of our diversified investment portfolio, as many of our companies have taken immediate actions to manage the unprecedented events of the past month related to Covid-19. However, we also recognize the magnitude of the Covid-19 impact are only beginning to unfold in the financial markets and our financial results. The Federal Reserve’s unprecedented reduction in the prevailing interest rates to support the economy will negatively impact our floating rate portfolio, and while interest rate floors will mitigate a portion of this impact, this interest income reduction combined with the reduced level of new deal and exit fee income, will reduce our net investment income. While Gladstone Management Corporation (“the Adviser”) has in the past chosen to provide incentive fee credits to support the maintenance of the shareholder distributions and will continue to do so, the near-term impact of these interest rate reductions are the prime reason for the adjustment of the announced distributions. In keeping with the Adviser’s long-term commitment to GLAD’s shareholders, the Adviser will, effective as of April 1, 2020, reduce the incentive fee payable to the Adviser by increasing the hurdle rate above which the incentive fee accrues from 7% to 8% through March 31, 2021. This incentive fee reduction will serve to increase the net earnings available for shareholder distributions and, as the prevailing interest rates recover, we expect to revisit the level of shareholder distributions. In closing, we want to thank our shareholders for their continuing support and want t...