Gladstone Commercial Amends, Extends and Upsizes Existing Credit Facility
July 09 2019 - 4:15PM
Gladstone Commercial Corporation (NASDAQ: GOOD) ("Gladstone
Commercial" or the “Company”), a real estate investment trust
focused on acquiring, owning and operating net leased industrial
and office properties, announced today that it amended, extended
and upsized its existing, syndicated revolving credit and term loan
facility from $160 million to $260 million. The term loan component
of the facility was upsized by $85 million to $160 million,
inclusive of a $38 million delayed funding component, with the
revolving credit facility being upsized by $15 million to $100
million. The Company used the net proceeds of the amended, extended
and upsized facility to term out previously existing borrowings
under the revolving credit facility.
The term loan component has a five-year term
with a maturity date of July 2, 2024 and the revolving credit
facility has a four-year term with a maturity date of July 2, 2023.
The pricing grid for the amended facility was revised with a spread
decrease of 10 basis points for both revolving credit and term loan
facility borrowings. The Company also executed interest rate caps
on the outstanding term loan facility borrowings.
Jay Beckhorn, Treasurer of Gladstone Commercial,
stated, “We’re pleased to announce the successful execution of this
transaction with the support of our previously existing bank group,
led by Key Bank as joint lead arranger and book manager as well as
Fifth Third Bank, U.S. Bank, and Huntington Bank as joint lead
arrangers. In addition, we’re extremely excited about the inclusion
of Wells Fargo Bank and Goldman Sachs as new balance sheet lenders.
It provides us with significant liquidity, a dramatically
extended debt maturity profile, as well as an improved interest
rate on this debt going forward.”
Mike Sodo, Chief Financial Officer of Gladstone
Commercial, added, “This transaction demonstrates the strong
relationships we’ve cultivated with our existing and new lenders.
We believe that this loan execution is a further testament of the
performance and growth of our portfolio over the past few years.
This facility will further position us to achieve the long-term
goals of our company.”
About Gladstone Commercial
Corporation (NASDAQ:GOOD)
Gladstone Commercial is a real estate investment
trust focused on acquiring, owning and operating net leased
industrial and office properties across the United States. As of
March 31, 2019, its real estate portfolio consisted of 102
properties located in 24 states, totaling approximately 11.7
million square feet. For additional information please visit
www.gladstonecommercial.com.
Investor Inquiries:
Bob Cutlip |
|
President – Gladstone Commercial Corporation |
(703) 287-5878 |
|
Bob.Cutlip@gladstonecompanies.com |
|
Mike Sodo |
|
Chief Financial Officer – Gladstone Commercial Corporation |
(703) 287-5853 |
|
Mike.Sodo@gladstonecompanies.com |
|
All statements contained in this press release,
other than historical facts, may constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Words such as "anticipates," "expects,"
"intends," "plans," "believes," "seeks," "estimates" and variations
of these words and similar expressions are intended to identify
forward-looking statements. Readers should not rely upon
forward-looking statements because the matters they describe are
subject to known and unknown risks and uncertainties that could
cause the Company's business, financial condition, liquidity,
results of operations, funds from operations or prospects to differ
materially from those expressed in or implied by such statements.
Such risks and uncertainties are disclosed under the caption "Risk
Factors" of the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2018, as filed with
the SEC on February 13, 2019, and other reports
filed with the SEC. The Company cautions readers not to place
undue reliance on any such forward-looking statements which speak
only as of the date made. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
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