MCLEAN, Va. (AP) -- Gladstone Investment Corp. said Tuesday that it reached a deal to sell 4 million shares of its common stock in a public offering for $7.50 per share.
The price represents a 3.8 percent discount to the company's Monday closing stock price of $7.80 per share. The sale is expected to result in net proceeds of $28.3 million after the payment of underwriting discounts, commissions and expenses, Gladstone said.
Gladstone also granted the offerings' underwriter, Jefferies & Co., a 30-day option to buy 600,000 more shares at the same terms. The deal remains subject to customary closing conditions and the shares are expected to be delivered Friday, the company said.
Gladstone said it plans to use the proceeds from its offering to repay short-term debt, make investments in small- and mid-sized businesses and for general corporate purposes.
McLean, Va.-based Gladstone invests in small and midsized businesses. In morning trading, its shares fell 50 cents, or 6.4 percent, to $7.30.