Gladstone Capital Increases Offering of Convertible Notes to $130 Million

Gladstone Capital Corporation has priced a public offering of $130 million in 5.875% convertible notes due 2030. Initially set at $110 million, the offering was increased alongside an option for underwriters to acquire an extra $19.5 million to address overallotments. The unsecured notes, maturing on October 1, 2030, allow conversions into company stock or cash at a rate of 38.4394 shares per $1,000. Notably, the maturity date can prompt increased conversion rates under certain conditions, with early redemption possible after October 6, 2028, based on stock performance.

Oppenheimer & Co. Inc. manages the offering, expected to raise $123.7 million net proceeds. The funds will repay debt under Gladstone's credit line and address general corporate needs. The initiative follows Gladstone's effective registration filed in December 2023. Investors are urged to review prospectuses for risks and investment details.