Find a company that has within the past two years issued preferred stock (2017-2019).Explain the terms...

Find a company that has within the past two years issued preferred stock (2017-2019).Explain the terms of the contract and the reasoning behind issuing the preferred stock. Finally, give some indication of the performance of the preferred stock to an investor and/or project the long term returns.

Expert Solution

Gladstone Investment Corporation (NASDAQ: GAIN) issued 2,600,000 shares of 6.375% Series E Cumulative Term Preferred Stock due 2025 (the “Series E Term Preferred Shares”) at a public offering price of $25.00 per share on 08/15/2018.

Company	Gladstone Investment Corporation	Ticker	NASDAQ: GAIN
Issuance Date	08/15/2018	Maturity Date	08/31/2025
Shares issued	26,00,000	Coupon	6.38%
Face Value	$25.00	Qualified	No
Cumulative	Yes	S&P Rating	NR
Quarterly Dividend Amount	0.133	Annual Dividend	1.594

The Company intended to use the net proceeds from this offering, plus borrowings under its credit facility, as necessary, to redeem all outstanding shares of its 6.75% Series B Cumulative Term Preferred Stock and its 6.50% Series C Cumulative Term Preferred Stock and for other general corporate purpose

Gladstone Investment Series E Cumulative Term Preferred Stock (NASDAQ:GAINL) declared $0.1328125/share monthly dividend, in line with previous.

Forward yield 6.4%

Payable Jan. 31; for shareholders of record Jan. 18; ex-div Jan. 17.

Payable Feb. 28; for shareholders of record Feb. 20; ex-div Feb. 19.

Payable Mar. 29; for shareholders of record Mar. 20; ex-div Mar. 19.

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