Gladstone Capital Corporation Reports Financial Results for the Quarter Ended December 31, 2012

Gladstone Capital Corporation Reports Financial Results for the Quarter Ended
                              December 31, 2012

PR Newswire

MCLEAN, Va., Jan. 29, 2013

MCLEAN, Va., Jan. 29, 2013 /PRNewswire/ -- Gladstone Capital Corporation
(NASDAQ: GLAD) (the "Company") today announced earnings for its first quarter
ended December 31, 2012. Please read the Company's Form 10-Q filed today with
the U.S. Securities and Exchange Commission (the "SEC"), which can be
retrieved from the SEC's website at www.sec.gov, or from the Company's website
at www.GladstoneCapital.com.

(Logo: http://photos.prnewswire.com/prnh/20101005/GLADSTONECAPITAL )

Please note the limited information that follows in this press release is not
adequate for making an informed investment judgment.

Summary Information (dollars in thousands, except per share data) (unaudited):

                                         December 31, 2012  September 30, 2012
For the Quarter Ended:
Total investment income                  $     9,828        $   10,045
Total expenses                           (4,969)            (5,504)
Net investment income                    4,859              4,541
Net investment income per common share   0.23               0.22
Cash distribution per common share       0.21               0.21
Total realized loss                      (3,048)            (4,757)
Total unrealized appreciation            6,555              5,680
Net increase in net assets resulting     8,366              5,464
from operations
Weighted average yield on                11.6           %   11.5            %
interest-bearing investments
Total dollars invested                   $     51,818       $   2,611
Total dollars repaid                     56,514             27,389
As of:
Total investments at fair value          $   270,513        $      273,960
Fair value as a percent of cost          75.8           %   75.1            %
Total net assets                         $     192,520      $   188,564
Net asset value per common share               9.17             8.98
Asset coverage ratio                     305            %   296             %
Number of portfolio companies            48                 50

Highlights for the Quarter: During the first quarter ended December 31, 2012,
the following significant events occurred:

  oPortfolio Activity: Invested an aggregate of $50.2 million to six new
    portfolio companies and an aggregate of $1.6 million to existing portfolio
    companies while receiving approximately $50.6 million in aggregate
    scheduled and unscheduled principal repayments from existing portfolio
    companies, including seven early payoffs at par. Related to these early
    payoffs, the Company received $1.1 million in success fees and $0.5
    million in prepayment fees. Additionally, the Company sold one
    non-accrual investment for net proceeds of approximately $5.9 million,
    which resulted in a realized loss of $2.4 million, and wrote off one
    non-accrual investment for a realized loss of $0.9 million.
  oRecurring Distributions: Paid monthly cash distributions for each of
    October, November and December 2012 to common stockholders of $0.07 per
    common share and to preferred stockholders of $0.1484375 per preferred
    share for the Company's 7.125% Series 2016 Term Preferred Stock (the "Term
    Preferred Stock").

First Quarter 2013 Results: Net Investment Income for the quarter ended
December 31, 2012 was $4.9 million, or $0.23 per share, as compared to the
prior quarter ended September 30, 2012 of $4.5 million, or $0.22 per share.
This 7% increase in Net Investment Income was primarily due to a decrease in
total operating expenses of $0.5 million, offset by a decrease in total
investment income of $0.2 million. Operating expenses decreased in the three
months ended December 31, 2012, as compared to the prior quarter, primarily
due to a decrease in interest expense resulting from decreased borrowings on
the Company's line of credit. Interest income on investments decreased by
$0.6 million quarter over quarter due to several early payoffs at par
occurring during the fourth quarter of fiscal year 2012 and the first quarter
of fiscal year 2013. Other income increased by $0.4 million quarter over
quarter due to an increase in success and prepayment fees resulting from the
early payoffs during the quarter ended December 31, 2012.

Net Increase in Net Assets Resulting from Operations for the quarters ended
December 31 and September 30, 2012 was $8.4 million, or $0.40 per share, and
$5.5 million, or $0.26 per share, respectively.

Subsequent Events: Subsequent to December 31, 2012, the following events
occurred:

  oAmendment to Revolving Line of Credit: Amended the Company's revolving
    line of credit to remove the minimum London Interbank Offered Rate
    interest rate of 1.5% on advances. The Company incurred fees of $0.6
    million in connection with this amendment. All other terms of the line of
    the credit remained unchanged.
  oRegistration Statement: Filed on November 29, 2012 the Company's
    Registration Statement on Form N-2, which the SEC declared effective
    January 18, 2013. The Registration Statement permits the Company to
    issue, through one or more transactions, up to an aggregate of $300.0
    million in securities, consisting of common stock, preferred stock,
    subscription rights, debt securities and warrants to purchase common stock
    or preferred stock, including through a combined offering of such
    securities.
  oDistributions Declared: Declared the following monthly cash distributions
    to stockholders:

Record Date     Payment Date    Distribution per  Distribution per Term
                                Common Share      Preferred Share
January 18,     January 31,     $      0.07       $      0.1484375
2013            2013
February 15,    February 28,    0.07              0.1484375
2013            2013
March 15, 2013  March 28, 2013  0.07              0.1484375
Total for the Quarter           $      0.21       $      0.4453125

Annual Meeting of Stockholders: The 2013 Annual Meeting of Stockholders will
be held on Thursday, February 14, 2013 at 11:00 a.m. EST at the Hilton McLean
Tysons Corner, located at 7920 Jones Branch Drive, McLean, Virginia 22102.

Conference Call for Stockholders: The Company will hold its earnings release
conference call on Wednesday, January 30, 2013, at 8:30 a.m. EST. Please call
(800) 860-2442 to enter the conference. An operator will monitor the call and
set a queue for questions. A replay of the conference call will be available
through February 14, 2013. To hear the replay, please dial (877) 344-7529 and
use conference number 10018530. The replay will be available beginning
approximately one hour after the call concludes. The live audio broadcast of
the Company's quarterly conference call will also be available online at
www.GladstoneCapital.com. The event will be archived and available for replay
on the Company's website through April 1, 2013.

About Gladstone Capital Corporation: Gladstone Capital Corporation is a
publicly traded business development company that invests in debt and equity
securities consisting primarily of senior term loans, second term lien loans,
and senior subordinated term loans in small and medium sized businesses in the
United States. The Company has paid 111 consecutive monthly cash
distributions on its common stock. Before the Company started paying monthly
distributions, the Company paid eight consecutive quarterly cash distributions
on its common stock. Information on the business activities of all the
Gladstone funds can be found at www.gladstonecompanies.com.

The Company has filed the Form 10-Q today with the SEC, which can be retrieved
from the SEC's website at www.sec.gov or from the Company's website at
www.GladstoneCapital.com. To obtain a paper copy from the Company, please
contact the Company at 1521 Westbranch Drive, Suite 200, McLean, VA 22102.
The financial information below is not comprehensive and is without notes, so
readers should obtain and carefully review the Company's Form 10-Q for the
quarter ended December 31, 2012, including the notes to the consolidated
financial statements contained therein.

SOURCE Gladstone Capital Corporation

Website: http://www.GladstoneCapital.com
Contact: Investor Relations Inquiries: +1-703-287-5893
 
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