GLADSTONE COMMERCIAL CORP current report, 25 August 2005

Business Context and Reporting Period

Company: Gladstone Commercial Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: August 25, 2005
Event: Entry into a material definitive agreement and creation of a direct financial obligation.

Key Financial Metrics

This filing reports a specific financing transaction rather than periodic financial performance metrics (revenue, profit, cash flow, or margins). The filing text does not provide a clear value for these operational metrics.

  • New Debt Obligation: $21,757,000
  • Interest Rate: 5.331% per annum
  • Maturity Date: September 1, 2015
  • Prepayment Terms: No prepayment penalty after June 1, 2015
  • Collateral:
    • Charlotte, North Carolina property: $7,125,000
    • Duncan, South Carolina property: $14,632,000
  • Use of Proceeds: Pay down existing line of credit

Material Changes

The Company entered into a long-term note payable with Bank of America, N.A. through wholly-owned subsidiaries AFL05 Duncan SC LLC and Little Arch Charlotte NC LLC. This transaction replaces or reduces the Company's reliance on its existing line of credit by utilizing long-term debt secured by specific real estate assets.

Outlook, Risks, and Management Commentary

The filing contains no forward-looking guidance, management commentary on future operations, or discussion of risks beyond the standard obligations of the new loan agreement. The transaction is presented as a refinancing activity to manage liquidity and debt structure.

Investor Verification Checklist

  • Verify the impact of the $21,757,000 debt on the Company's total leverage ratios.
  • Confirm the reduction in the existing line of credit balance following the use of proceeds.
  • Review the specific covenants within the Loan Agreement (Exhibit 10.4) and Promissory Note (Exhibit 10.5).
  • Assess the valuation and occupancy status of the Charlotte, NC and Duncan, SC properties serving as collateral.