Gladstone Capital Corporation Invests $16.0 Million in Francis Drilling Fluids, Ltd.
MCLEAN, Va., May 15, 2012 /PRNewswire/ -- Gladstone Capital Corporation (NASDAQ: GLAD) ("Gladstone Capital" or the "Company") announced today that on Friday, May 4, 2012, it invested $16.0 million in Francis Drilling Fluids, Ltd. ("FDF"). Gladstone Capital provided debt and equity financing to support the acquisition of FDF by private equity sponsor Prophet Equity of Southlake, Texas.
FDF, headquartered in Crowley, Louisiana, is a leading provider of logistics solutions for the U.S. oil and natural gas industry, specializing in the movement and warehousing of fracturing materials required for high-pressure, fracture stimulation for horizontal oil and natural gas drilling.
"Gladstone Capital is pleased to support Prophet Equity and the experienced management team at FDF in this investment. We are excited to add another quality investment to our portfolio as we build our assets and earnings," said Chip Stelljes, President of Gladstone Capital.
"FDF has established itself as a market leader in a critical element of the oil and natural gas supply chain and we look forward to supporting the business and management team going forward," said Greg Bowie, Director of Gladstone Management Corporation, the investment adviser for Gladstone Capital.
Gladstone Capital Corporation is a publicly traded business development company that invests in debt securities consisting primarily of senior term loans, second term lien loans, and senior subordinated term loans in small and medium-sized U.S. businesses. The Company has paid 103 consecutive monthly cash distributions on its common stock. Before paying monthly distributions on the common stock, the Company paid eight consecutive quarterly cash distributions. Information on the business activities of all the Gladstone funds can be found at www.gladstonecompanies.com.
For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstone.com.
The statements in this press release regarding the longer-term prospects of FDF and its management team may be deemed to be "forward-looking statements," as that term is defined in 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, although they are based on the Company's current plans that are believed to be reasonable as of the date of this press release. Factors that may cause the Company's actual results to differ from these forward-looking statements include, among others, the duration and effects of current economic instability, the Company's ability to access debt and equity capital and those factors listed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for its fiscal year ended September 30, 2011, filed by the Company with the U.S. Securities and Exchange Commission (the "SEC") on November 14, 2011, and the Company's Post-Effective Amendment No. 6 to its registration statement on Form N-2 (file No. 333-162592), filed with the SEC on March 6, 2012 (the "Form N-2"). The risk factors set forth in the Form 10-K and Form N-2 under the caption "Risk Factors" are specifically incorporated by reference into this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Gladstone Capital Corporation