Gladstone Capital Corporation Reports Financial Results for its Second Quarter Ended March 31, 2018
Summary Information (dollars in thousands, except per share data) (unaudited):
For the Quarter Ended:
|Total investment income||$||11,086||$||10,859||$||227||2.1||%|
|Total expenses, net of credits||(5,473||)||(5,282||)||191||(3.6||)|
|Net investment income||5,613||5,577||36||0.6|
|Net investment income per common share||0.21||0.21||—||—|
|Cash distribution per common share||0.21||0.21||—||—|
|Net realized gain||324||441||(117||)||(26.5||)|
|Net unrealized appreciation||3,367||1,142||2,225||194.8|
|Net increase in net assets resulting from operations||9,304||7,160||2,144||29.9|
|Weighted average yield on interest-bearing investments||11.5||%||12.0||%||(0.5||)%||(4.2||)|
|Total repayments and net proceeds||14,198||19,843||(5,645||)||(28.4||)|
|Total investments, at fair value||$|| |
|Fair value, as a percent of cost||88.0||%||87.2||%||0.8||%||0.9|
|Net asset value per common share||$||8.62||$||8.48||$||0.14||1.7|
Second Fiscal Quarter 2018 Highlights:
- Portfolio Activity: Invested
$8.1 millionin one new portfolio company and $11.3 millionin existing portfolio companies. Received $14.2 millionin repayments and net proceeds from portfolio companies resulting in net originations of $5.2 million.
- ATM Program: Sold 265,579 shares of our common stock at a weighted-average price of
$8.89per share through our at-the-market program for gross proceeds of $2.4 million.
- LOC Amendment: Entered into Amendment No. 4 (the "Amendment") to the Fifth Amended and Restated Credit Agreement with
KeyBankas administrative agent, managing agent and lead arranger, Gladstone Management Corporation, the Company's financial adviser, as servicer, and certain other lenders party thereto (together with the Amendment, the "Credit Facility"). Amendment No. 4 amended the Credit Facility to:
-- Extend the revolving period from
January 19, 2019to January 15, 2021;
-- Extend the maturity date from
May 1, 2020to April 15, 2022, at which time all principal and interest will be due and payable;
-- Reduce the interest rate margin by 40 basis points effective immediately to 2.85% for the balance of the revolving period (
January 15, 2021), after which the margin increases to 3.25% for the balance of the facility term;
-- Change the unused commitment fee from 0.50% of the total unused commitment amount to 0.50% when the average unused commitment amount for the reporting period is less than or equal to 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
-- Increase the current commitment amount from
$170 millionto $190 millionwith the ability to expand to a total facility amount of $265 millionthrough additional commitments of existing lenders.
- Recurring Distributions and Dividends: For each of January, February, and
March 2018, paid monthly distributions to common stockholders ( $0.07per common share) and monthly dividends to preferred stockholders ( $0.125per share of the Company's 6.00% Series 2024 Term Preferred Stock).
Second Fiscal Quarter 2018 Results:
Interest income increased by approximately
Investment Income for the quarter ended
The Net Increase in Net Assets Resulting from Operations for the quarters ended
Subsequent Events: Subsequent to
- Portfolio Activity:
April 2018, we invested $3.0 millionin CHA Holdings, Inc.through secured second lien debt.
- Distributions and Dividends Declared: In
April 2018, our Board of Directors declared the following monthly distributions to common stockholders and monthly dividends to preferred shareholders:
|Record Date||Payment Date||Distribution|
|Total for the Quarter||$||0.21||$||0.375|
- Small Business Credit Availability Act: On
April 10, 2018, our Board of Directors, including a "required majority" (as such term is defined in Section 57(o) of the Investment Company Act of 1940, as amended (the "1940 Act"))) thereof, approved the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the Small Business Credit Availability Act. As a result, the Company's asset coverage requirements for senior securities will be changed from 200% to 150%, effective one year after the date of the Board of Director's approval, or April 10, 2019.
Comments from Gladstone Capital's President,
Conference Call for Stockholders: The Company will hold its earnings release conference call on
To obtain a paper copy of the Company's most recent Form 10-Q, please contact the Company at
Investor Relations Inquiries: Please visit www.gladstonecompanies.com or +1-703-287-5893.
The statements in this press release about future growth and shareholder returns are "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
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