Gladstone Investment Corporation Declares a Bonus Dividend of $0.03 Per Common Share

MCLEAN, Va., March 12, 2012 /PRNewswire/ -- Gladstone Investment Corporation (NASDAQ: GAIN) (the "Company") announced today that its board of directors declared a bonus dividend on its common stock of $0.03 per share, payable on March 30 per the table below. The board's declaration of the bonus dividend raises the total dividends declared for fiscal year ending March 31, 2012, to $0.615 per common share, an increase of 28% over fiscal year 2011.

(Logo: http://photos.prnewswire.com/prnh/20101005/GLADSTONEINVESTMENT )

"Due to a strong performance this fiscal year, we expect our ordinary taxable income to exceed our regular dividend payout by 5% to 10%. In addition to declaring this bonus dividend of $0.03 per common share, we expect to retain some of the excess income earned during the year. This 'spill-over' of retained ordinary taxable income into fiscal March 31, 2013 will allow us to start the new fiscal year in a great position," said Company President Dave Dullum.

Additionally, the Company's board of directors declared a cash distribution of $0.12369792 per share of its 7.125% Series A Cumulative Term Preferred Stock ("Term Preferred Stock") (NASDAQ: GAINP).  The cash distribution is a pro-rated monthly amount for March 2012, given the time period during which the Term Preferred Stock was issued and outstanding, and is payable per the table below.  This is the first cash distribution declared for the Term Preferred Stock.

Summary Table for Cash Dividends Declared:

Lastly, the Company announced today that on March 6, 2012, its newly-issued Term Preferred Stock began trading on NASDAQ under the symbol GAINP.  The Company sold 1,400,000 shares of the Term Preferred Stock on March 6, 2012. The Term Preferred Stock will pay monthly dividends of $0.1484375 per share, or $1.78125 annually. The dividend is cumulative. The Term Preferred Stock was issued at $25 per share and must be redeemed by the Company in February 2017 at $25 per share. The Company raised $35 million in gross proceeds and $33.2 million in net proceeds, after payment of underwriting discounts and commissions and estimated expenses of the offering payable by the Company.  

The Company offers a dividend reinvestment plan (the "DRIP") to its common stockholders. For more information regarding the DRIP, please visit www.gladstoneinvestment.com. There is no DRIP for the Term Preferred Stock.

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. The Company has paid 80 consecutive monthly 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 Company's expected performance, taxable income and other such statements are "forward-looking statements."  These forward-looking statements inherently involve certain risks and uncertainties, although they are based on the Company's current plans that it believes 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 other factors listed under the caption "Risk Factors" of post-effective amendment no. 4 to the registration statement on Form N-2(file No. 333-160720), filed with the SEC on August 17, 2011 (the "Form N-2"), and the Company's Quarterly Report on Form10-Q for the quarter ended September 30, 2011, filed with the SEC on November 2, 2011 (the "Form 10-Q").  The risk factors set forth in the Form N-2 and Form 10-Q 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 Investment Corporation