Gladstone Capital Corporation Prices Upsized Public Offering of 5.875% Convertible Notes due 2030

About this update from Gladstone Capital Corporation

[{"type":"text","content":"MCLEAN, VA / ACCESS Newswire / September 9, 2025 / Gladstone Capital Corporation (NASDAQ:GLAD) (the "Company") today announced that it priced a registered public offering of $130.0 million aggregate principal amount of 5.875% convertible notes due 2030 (the "Notes") at an issue price of 98.5% of the principal amount thereof on September 9, 2025. In addition, the Company granted the underwriter of the Notes a 30-day option to purchase up to an additional $19.5 million in aggregate principal amount of the Notes to cover overallotments, if any. The size of the offering was increased from the previously announced $110.0 million aggregate principal amount of Notes. The closing of the transaction is subject to customary closing conditions and the Notes are expected to be delivered on or about September 12, 2025.","length":837,"tagName":"p"},{"type":"text","content":"The Notes will be unsecured obligations of the Company and will pay interest semi-annually in arrears on April 1 and October 1 of each year, beginning April 1, 2026. The Notes will mature on October 1, 2030, unless earlier converted, redeemed or repurchased.","length":258,"tagName":"p"},{"type":"text","content":"Noteholders may convert their Notes at their option at any time prior to the close of business on the business day immediately preceding the maturity date. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election. The conversion rate will initially be 38.4394 shares of the Company's common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $26.02 per share of the Company's common stock). The initial conversion price of the Notes represents a premium of approximately 10.0% over the last reported sale price of the Company's common stock on the Nasdaq Global Select Market on September 9, 2025. The conversion rate will be subject to adjustment in certain events. In addition, following certain corporate events that occur prior to the maturity date or if the Company delivers a notice of redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Notes in connection wi...

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