Profile: Gladstone Investment Corp (GAIN.O)
23 Jul 2019
Gladstone Investment Corporation, incorporated on February 18, 2005, is an externally managed, closed-end, non-diversified management investment company. The Company is established for the purpose of investing in debt and equity securities of established private businesses operating in the United States. Its investment objectives are to achieve and grow current income by investing in debt securities of established businesses that the Company believes will provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding indebtedness and make distributions to stockholders that grow over time, and provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities, generally in combination with the aforementioned debt securities, of established businesses that the Company believes can grow over time to permit it to sell its equity investments for capital gains. Its investment portfolio is made up of approximately 71.3% in debt securities and over 28.7% in equity securities. It has investments in sectors, such as chemicals, plastics and rubber; home and office furnishings, house wares and durable consumer products; diversified/conglomerate manufacturing; leisure, amusement, motion pictures and entertainment; farming and agriculture; containers, packaging and glass; textiles and leather; aerospace and defense; personal and non-durable consumer products (manufacturing only); beverage, food and tobacco, and others. The Company is externally managed by its investment advisor, Gladstone Management Corporation.
The Company's investments in debt securities have a term of approximately seven years, accrue interest at variable rates (based on the one-month London Interbank Offered Rate (LIBOR)) and, to a lesser extent, at fixed rates. The Company seeks debt instruments that pay interest monthly or, at a minimum, quarterly, and which may include a yield enhancement, such as a success fee or deferred interest provision and are primarily interest only, with all principal and any accrued but unpaid interest due at maturity. The Company seeks to invest a portion of its assets in first lien secured debt securities also known as senior loans, senior term loans, lines of credit and senior notes; second lien secured debt securities, which may also be referred to as subordinated loans, subordinated notes and mezzanine loans, and in equity securities, which consist of preferred and common equity, limited liability company interests, warrants or options to acquire such securities, and are generally in combination with its debt investment in a business.
Gladstone Investment Corp
1616 Anderson Rd
MC LEAN VA 22102-1602