MCLEAN, Va., March 12, 2018 (GLOBE NEWSWIRE) -- Gladstone Capital Corporation(NASDAQ:GLAD) (the “Company”) today announced the amendment and extension of its syndicated credit facility led by KeyBank National Association (“KeyBank”), which includes a reduction in pricing, expansion of the total commitment and extension of the maturity date.

Effective, March 9, 2018, the Company, through its wholly-owned subsidiary, Gladstone Business Loan, LLC, entered into Amendment No. 4 (the “Amendment”) to its Fifth Amended and Restated Credit Agreement with KeyBank as administrative agent, managing agent and lead arranger, Gladstone Management Corporation, the Company’s Adviser, as servicer, and certain other lenders party thereto (together with the Amendment, the “Credit Facility”). Amendment No. 4 amended the Credit Facility to:

• Extend the revolving period from January 19, 2019 to January 15, 2021;

• Extend the maturity date from May 1, 2020 to April 15, 2022, at which time all principal and interest will be due and payable;

• Reduce the interest rate margin by 40 basis points effective immediately to 2.85% for the balance of the revolving period (January 15, 2021), after which the margin increases to 3.25% for the balance of the facility term;

• Change the unused commitment fee from 0.50% of the total unused commitment amount to 0.50% when the average unused commitment amount for the reporting period is less than or equal to 50%, 0.75% when the average unused commitment amount for the reporting period is greater than 50% but less than or equal to 65%, and 1.00% when the average unused commitment amount for the reporting period is greater than 65%; and

• Increase the current commitment amount from $170 million to $190 million with the ability to expand to a total facility amount of $265 million through additional commitments of existing lenders.

Comments from Gladstone Capital Corporation’s President, Bob Marcotte: “We would like to thank KeyBank and the participating banks, the majority of which increased their commitments, for their continued confidence and support of Gladstone Capital in closing on this amendment. The combination of the increased capacity, maturity extension and pricing improvements in this amendment are expected to provide both an immediate benefit to our current net interest income as well as support the long-term growth of our investment portfolio. This amendment represents an important milestone for Gladstone Capital and underscores our strong portfolio performance.”

About Gladstone Capital Corporation: Gladstone Capital Corporation is a publicly traded business development company that invests in debt and equity securities, consisting primarily of secured first and second lien term loans to lower middle market businesses in the United States. Including distributions through today, the Company has paid 181 consecutive monthly or quarterly cash distributions on its common stock. Information on the business activities of all the Gladstone funds can be found at www.GladstoneCompanies.com.