Gladstone Capital Corporation Announces Sale of Funko, LLC
MCLEAN, Va., Nov. 2, 2015 (GLOBE NEWSWIRE) -- Gladstone Capital Corporation (NASDAQ:GLAD) ("Gladstone Capital") announced today the sale of its equity interest and the prepayment of its senior secured debt investment in Funko LLC ("Funko") on October 30, 2015. As a result of the sale, Gladstone Capital recognized a significant capital gain on its equity investment.
Gladstone Capital and its affiliated fund, Gladstone Investment (NASDAQ:GAIN), made identical equity and debt investments in Funko in May of 2013, which supported Fundamental Capital, LLC's acquisition of Funko.
"With the successful sale of Funko, Gladstone Capital is expected to generate significant after tax proceeds on its equity investment. The reinvestment of these proceeds in interest-yielding loans will materially enhance our net interest income and may support an increase in shareholder distributions," said Robert Marcotte, President of Gladstone Capital.
Gladstone Capital Corporation is a publicly traded business development company that invests in debt and equity securities, consisting primarily of senior, second lien and senior subordinated term loans in small and medium sized businesses in the United States.
Information on the business activities of Gladstone Capital, Gladstone Investment and 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.
For further information: The Gladstone Companies, 703-287-5893
The statements in this press release regarding the ability to re-invest proceeds from Funko and increase distributions to its stockholders 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.
Released November 2, 2015