Business Context and Reporting Period
Company: Gladstone Commercial Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: March 28, 2014
Event: Entry into a Material Definitive Agreement (Amendment to Credit Agreement)
Key Financial Metrics
This filing reports specific debt facility metrics rather than comprehensive operating results (revenue, profit, or cash flow are not provided).
- Outstanding Borrowings: $24.1 million
- Remaining Availability: $18.7 million
- Total Commitment: $60.0 million
- Modification Fees Paid: 25 basis points on the $60.0 million commitment
Material Changes
The Company amended its Line of Credit with KeyBank National Association and other lenders. Key changes include:
- Maturity Extension: Extended by 12 months to August 7, 2017.
- Capitalization Rate Reduction: Reduced from 8.75% to 8.50% for calculating consolidated total asset value and unencumbered asset value.
- Acquisition Valuation Period: New property acquisitions are now valued at cost for 12 months (previously 6 months) in asset value calculations.
- Interest Rate Margin Reduction: Applicable margin for LIBOR and base rate loans reduced by 25 basis points at each pricing level.
Outlook, Risks, and Management Commentary
The filing does not contain forward-looking guidance, management commentary on future operations, or specific risk factors beyond the standard incorporation of the full amendment text. The amendment reflects a strategic adjustment to improve borrowing terms and asset valuation flexibility.
Investor Verification Checklist
- Verify the impact of the reduced capitalization rate (8.50%) on future borrowing capacity.
- Confirm the total cost of the 25 basis point modification fee against the $60.0 million commitment.
- Review the full text of the First Amendment to the Credit Agreement (Exhibit 10.1) for covenants not summarized here.
- Monitor the utilization of the $18.7 million remaining availability.