MCLEAN, VA - Gladstone Commercial (NASDAQ:GOOD) Corporation (NASDAQ:GOOD), a real estate investment trust with a market capitalization of $710 million, has successfully completed a private placement of senior unsecured notes amounting to $75 million. The 6.47% notes, which are set to mature on December 18, 2029, have been sold to a group of institutional investors. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 3.65, indicating robust financial health.
The company's subsidiary, Gladstone Commercial Limited Partnership ("Gladstone LP"), intends to use the proceeds from the notes to repay existing debt under its senior unsecured revolving credit facility, to pre-pay a portion of its $60 million Term Loan B facility, and for general corporate purposes. The company currently maintains total debt of approximately $699 million, and InvestingPro analysis reveals 8 additional key financial insights available to subscribers.
Buzz Cooper, President of Gladstone Commercial, expressed satisfaction with the transaction, noting the support from institutional investors and the favorable terms achieved. He highlighted that this marks Gladstone's initial foray into the long-term unsecured debt market, aligning with its strategy to transition away from secured mortgage debt.
The notes have not been registered under the U.S. Securities Act of 1933 or any state securities laws and will not be available for sale in the United States absent an exemption from registration requirements.
KeyBanc Capital Markets Inc. led the placement, with Bank of America Securities, Inc., Goldman Sachs & Co. LLC, Huntington Securities, Inc., and Fifth Third Securities, Inc. serving as Co-Placement Agents. Legal counsel for the transaction was provided by Squire Patton Boggs (US) LLP for Gladstone Commercial and Gladstone LP, Venable LLP as Maryland counsel to Gladstone Commercial, and Chapman and Cutler LLP representing the purchasers.
Gladstone Commercial specializes in the acquisition, ownership, and operation of net leased industrial and office properties across the United States. As of September 30, 2024, the company's portfolio included 135 properties in 27 states, totaling approximately 16.8 million square feet.
This financial move is based on a press release statement and reflects Gladstone Commercial's continued efforts to strengthen its financial position and support its growth strategy.
In other recent news, Gladstone Commercial Corporation has reported several key developments. The company announced the resignation of board member Paul W. Adelgren, effective December 15, 2024, as per an 8-K filing with the Securities and Exchange Commission. The future plans to fill this vacancy have not been disclosed yet.
Gladstone Commercial has also reported a strong Q3 2024 performance, with an increase in funds from operations (FFO) per share to $0.38, up from $0.33 in Q3 2023. The company's operating revenues also saw an uptick, reaching $39.2 million, up from $36.5 million in the previous year.
The company's strategic focus on industrial real estate has resulted in a 63% concentration in its portfolio, with plans to increase this figure to over 70% in the next 12 months. This shift was marked by the acquisition of an industrial asset in Midland, Texas for $10 million and the sale of two medical office assets in Georgia. Gladstone Commercial's liquidity position remained robust at $80.7 million, with $70.2 million available under its credit facility. These are the recent developments in the company.
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