Gladstone Commercial Announces Private Placement of Senior Guaranteed Notes

On December 18, 2024, Gladstone Commercial Corporation and its majority-owned operating partnership, Gladstone Commercial Limited Partnership, entered into a significant Note Purchase Agreement with institutional investors. The private placement involved the issuance of $75,000,000 million in aggregate principal amount of 6.47% Senior Guaranteed Notes due December 18, 2029.

These Notes, constituting the Partnership’s senior unsecured obligations, are guaranteed by Gladstone Commercial Corporation and its subsidiaries, which provide guarantees under the Fourth Amended and Restated Credit Agreement and Other Loan Documents. The Notes were issued at par and became effective on the same day.

Interest on the Notes is fixed at an annual rate of 6.47%, with semi-annual payments due on June 18 and December 18, starting from June 18, 2025. The prepayment terms allow for partial prepayments not less than 5% of the principal amount, with conditions adjusting closer to the maturity date. In the event of a Change in Control of the Company, prepayment might be required at 100% of the principal amount.

The Agreement includes standard terms for senior unsecured notes issued in a private placement, along with affirmative and restrictive covenants consistent with those in the Credit Facility. Additionally, the Notes’ interest rates may be subject to adjustments based on credit ratings from relevant rating agencies.

Proceeds from the offering are intended to repay borrowings under the Partnership’s revolving line of credit, term loan debt under the Credit Facility, and for general corporate purposes. The offering falls under the exemption provided by Section 4(a)(2) of the Securities Act of 1933.

For further details and the complete terms, including the text of the Agreement and the Notes, interested parties are referred to Exhibits attached to Gladstone Commercial’s Form 8-K filing with the Securities and Exchange Commission.

The financial statement disclosure requirements and all related exhibits have been met by the company, in accordance with the Securities Exchange Act of 1934.

This announcement was made available to the public on December 19, 2024, signed by Gary Gerson, the Chief Financial Officer of Gladstone Commercial Corporation.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Gladstone Commercial’s 8K filing here.

Gladstone Commercial Company Profile

Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States. Including payments through January 2024, Gladstone Commercial has paid 229 consecutive monthly cash distributions on its common stock.