Business Context and Reporting Period
Company: Gladstone Commercial Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: November 24, 2009
Event: Entry into a Material Definitive Agreement regarding the extension of a credit facility.
Key Financial Metrics
This filing reports specific debt and liquidity metrics as of November 24, 2009, but does not provide revenue, profit, or cash flow data.
- Credit Facility: $50 million line of credit with KeyBank National Association.
- Outstanding Borrowings: $31.2 million.
- Letters of Credit: Approximately $3.6 million outstanding.
- Available Capacity: Approximately $10.3 million.
- Interest Rates: Approximately 2.2% on the line of credit; approximately 2.0% weighted average on letters of credit.
- Extension Fee: $100,000 (0.20% of total commitment).
Material Changes
The Company exercised an option to extend the maturity date of its $50 million line of credit by one year. The facility was originally set to expire on December 29, 2009, and the new maturity date is December 29, 2010. This action required the payment of a $100,000 extension fee.
Outlook, Risks, and Management Commentary
The filing contains no forward-looking guidance, management commentary on future performance, or discussion of risks beyond the standard incorporation of the credit agreement by reference. The extension indicates the Company's intent to maintain existing liquidity arrangements.
Investor Verification Checklist
- Verify the full terms of the credit agreement and amendments (Exhibits 10.1, 10.2, and 10.3) for covenants and default provisions.
- Confirm the utilization rate of the $50 million facility ($34.8 million utilized vs. $10.3 million available).
- Monitor the Company's ability to repay or refinance the $31.2 million outstanding balance by the new maturity date of December 29, 2010.
- Review subsequent filings for any changes in interest rates or additional fees associated with the extended term.