Gladstone Investment Corporation Announces Size Increase, Maturity Extension and Rate Decrease on Credit Facility

MCLEAN, Va., Oct. 27, 2011 /PRNewswire/ -- Gladstone Investment Corporation (Nasdaq: GAIN) (the "Company") announced that, on October 26, 2011, it entered into a fourth amended and restated credit agreement through its wholly-owned subsidiary, Gladstone Business Investment, LLC, to increase the commitment amount of its revolving line of credit (the "Credit Facility") to $60 million.  The Credit Facility was arranged by Branch Banking and Trust Company ("BB&T") and Key Equipment Finance, Inc. as Joint Lead Arrangers and Managing Agents, and BB&T as Administrative Agent.  Subject to certain terms and conditions, the Credit Facility may be expanded up to $175 million through the addition of other committed lenders to the facility.  The Credit Facility matures on October 25, 2014 (the "Maturity Date"), and, if not renewed or extended by the Maturity Date, all principal and interest will be due and payable on or before October 25, 2015 (one year after the Maturity Date).

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There are two one-year extension options to be exercised by October 26, 2012 and October 26, 2013.  The options will only take effect if approved by the lenders. If both options are exercised and accepted by the lenders, the Maturity Date would be extended to October 25, 2016 and all principal and interest would be due and payable on or before October 25, 2017.  Advances under the Credit Facility will generally bear interest at 30-day LIBOR plus 3.75% per annum, with an unused fee of 0.50% on undrawn amounts.  Previously, interest generally bore interest at 30-day LIBOR (subject to a minimum rate of 2.0%) plus 4.5% per annum.  The Company incurred fees of $0.7 million in connection with this amendment.

About us:  Gladstone Investment Corporation is a publicly traded business development company that seeks to make debt and equity investments in small and mid-sized businesses in the United States in connection with acquisitions, changes in control and recapitalizations.  Including payments through December 2011, the Company will have paid 78 consecutive monthly cash distributions on its common stock.  

For additional information on the Company, please visit www.gladstoneinvestment.com. You can also follow us on Twitter, username GladstoneComps, or on Facebook, keyword The Gladstone Companies. 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.

SOURCE Gladstone Investment Corporation