Gladstone Capital Corporation Invests $12.0 Million in InStore Audio Network
MCLEAN, Va., May 31, 2012 /PRNewswire/ -- Gladstone Capital Corporation (GLAD) ("Gladstone Capital") announced today that it invested $12.0 million in POP Radio LP ("POP Radio" dba as InStore Audio Network). Gladstone Capital, together with Alta Communications ("Alta") and certain of POP Radio's limited partners, provided debt financing to POP Radio to support its acquisition of In-Store Broadcasting Network, Inc. ("IBN").
InStore Audio Network, managed by Jeff Shapiro and Gary Seem, is now the largest advertiser-supported in-store audio network in the U.S., broadcasting to over 33,000 grocery, drug and mass merchandiser stores. The acquisition of IBN, previously the second largest advertiser-supported in-store audio network in the U.S., brings over 14,500 grocery and drug stores throughout the country to InStore Audio Network. InStore Audio Network is based in Salt Lake City, UT.
"Gladstone Capital is excited about supporting InStore Audio Network and Alta in this investment. The combination of POP Radio and IBN into InStore Audio Network creates the largest national in-store audio network for advertisers to reach customers at the point of purchase," said Chip Stelljes, President of Gladstone Capital.
"We are thrilled to assist InStore Audio Network, as well as Jeff Shapiro, Gary Seem, and Alta with this acquisition. We are looking forward to working with them as they continue to expand this proven advertising model," said Dave Meier, Managing Director of Gladstone Capital.
Gladstone Capital Corporation is a publicly traded business development company that invests in debt securities consisting primarily of senior term loans, second term lien loans, and senior subordinated term loans in small and medium-sized U.S. businesses. Gladstone Capital has paid 104 consecutive monthly cash distributions on its common stock. Before paying monthly distributions on the common stock, Gladstone Capital paid eight consecutive quarterly cash distributions. Information on the business activities of 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.
The statements in this press release regarding the longer-term prospects of POP Radio and its management team may be deemed to be "forward-looking statements," as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on the Gladstone Capital's current plans that are believed to be reasonable as of the date of this press release. Factors that may cause the Gladstone Capital's actual results to differ from these forward-looking statements include, among others, the duration and effects of current economic instability, its ability to access debt and equity capital and those factors listed under the caption "Risk Factors" in its Annual Report on Form 10-K for its fiscal year ended September 30, 2011, filed with the U.S. Securities and Exchange Commission (the "SEC") on November 14, 2011, and its Post-Effective Amendment No. 6 to its registration statement on Form N-2 (file No. 333-162592), filed with the SEC on March 6, 2012 (the "Form N-2"). The risk factors set forth in the Form 10-K and Form N-2 under the caption "Risk Factors" are specifically incorporated by reference into this press release. Gladstone Capital undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Gladstone Capital Corporation