Gladstone Capital Corporation Invests $7.0 Million in Alloy Die Casting Co.
MCLEAN, Va., Oct. 3, 2013 /PRNewswire/ -- Gladstone Capital Corporation (NASDAQ: GLAD) ("Gladstone Capital") announces today that on October 1, 2013, it invested $7.0 million in a combination of debt and equity to purchase Alloy Die Casting Co ("ADC"). Gladstone Capital's affiliated company, Gladstone Investment Corporation (NASDAQ: GAIN) ("Gladstone Investment") participated as a co-investor by providing $16.3 million of debt and equity financing on the same terms as Gladstone Capital in support of the acquisition.
Founded in 1946 and headquartered in Buena Park, CA, ADC is a manufacturer of high quality, finished aluminum and zinc castings for aerospace, defense, aftermarket automotive and industrial applications. ADC provides its customers with engineering support and custom tool design and fabrication as well as in-house machining and finishing capabilities.
"Gladstone Capital is excited to partner with ADC's talented and experienced management team. We look forward to the continued growth of the business and building upon the success of the management team over the past few years," said Greg Bowie, a Director, Private Finance, of Gladstone Management Corporation, Gladstone Capital's affiliated investment adviser.
Gladstone Capital Corporation is a publicly traded business development company that invests in debt and equity securities, consisting primarily of senior term loans, second term lien loans, and senior subordinated term loans in small and medium sized businesses in the United States. The Company has paid 120 consecutive monthly cash distributions on its common stock. Before the Company started paying monthly distributions, the Company paid eight consecutive quarterly cash distributions on its common stock. 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 ADC and its management team, and the ability of ADC to grow and expand are "forward-looking statements." These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on the Company's 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 Gladstone Capital's filings with the Securities and Exchange Commission. Gladstone Capital undertakes no obligation to publicly release the result of any revisions to these forward looking statements that may be made to reflect any future events or otherwise, except as required by law.
SOURCE Gladstone Capital Corporation