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Gladstone backs Funko with $17.5m

Two BDCs managed by Gladstone Capital have jointly provided a mezzanine term loan to fund Fundamental Capital’s acquisition of pop-culture collectibles firm Funko in the US.

 Pop-culture collectibles manufacturer Funko has secured a $17.5 million mezzanine term loan from Gladstone Capital’s two business development companies: Gladstone Investment Corporation and Gladstone Capital Corporation.

The loan is split into two equal tranches of $8.75 million, and marks Gladstone Capital and Gladstone Investment’s first joint investment. “Both funds invested on the same terms and we believe that Funko will be a great investment for both of them,” David Dullum, president of Gladstone Investment said in a statement.

Terms and conditions for the committed term loan facility including interest rate, total leverage incurrence test and delayed draw feature are “favourable to market”.

Gladstone Investment Corporation is a listed business development company that invests via debt and equity in small and mid-sized businesses in the US, in connection with acquisitions, changes in control and recapitalisations. Gladstone Capital Corporation is a speciality finance company that invests in debt securities consisting primarily of senior term and senior subordinated loans.