MCLEAN, Va., Sept. 4, 2013 /PRNewswire/ -- Gladstone
Investment Corporation (NASDAQ: GAIN) ("Gladstone Investment")
announced today the sale of its portfolio company, Venyu Solutions
Inc. ("Venyu"), to EATELCORP, LLC on August
30, 2013. As a result of the sale, Gladstone Investment
received net cash proceeds of $32.2
million, resulting in a realized gain of approximately
$24.8 million and dividend income of
$1.4 million. In addition,
Gladstone Investment received full repayment of its debt investment
of $19 million in principal repayment
and $1.8 million in fee income.
(Logo:
http://photos.prnewswire.com/prnh/20101005/GLADSTONEINVESTMENT
)
In October 2010, Gladstone
Investment made its original equity investment and provided debt
financing in support of the buyout of Venyu from a prior owner in
partnership with Venyu's CEO, Scott
Thompson, and Madison Parker Capital, LLC ("Madison Parker"). Gladstone Investment's
original $6.0 million equity
investment generated a 5.5 times return, including dividends
received, equating to an 84.3% annual internal rate of return. The
return on the total investment, including debt, was 2.4 times, for
a 41.6% annual internal rate of return.
"Gladstone Investment has greatly enjoyed our partnership with
Scott Thompson and Madison Parker over the last few years. Scott
and his team have achieved outstanding results in growing and
transforming the business and have a very bright future ahead of
them with their new owners," said Kyle
Largent, Managing Director of Gladstone Investment.
"While we pay monthly dividends to our stockholders from the
current income on our debt investments, our investment objective is
also to achieve capital gains from the equity positions of our
investments in our portfolio companies. In this regard, the Venyu
transaction is a significant realization of a capital gain in
support of our investment strategy. We strive to achieve more
investments like this one," said Dave
Dullum, President of Gladstone Investment.
Gladstone Investment Corporation is an investment company that
seeks to make debt and equity investments in small and mid-sized
private businesses in the U.S. in connection with acquisitions,
changes in control and recapitalizations. Gladstone
Investment Corporation has paid 98 consecutive monthly cash
distributions on its common stock.
Additional information can be found at
www.GladstoneInvestment.com or by calling the Company's
Investor Relations department at 703-287-5839.
SOURCE Gladstone Investment Corporation
