Business Context and Reporting Period
This Form 8-K Current Report was filed by Gladstone Commercial Corporation on February 18, 2004. The report details a specific asset acquisition event involving the extension of a mortgage note by the Company's subsidiary, Gladstone Lending LLC.
Key Financial Metrics
The filing discloses the following specific financial data regarding the new loan:
- Loan Amount: $11,170,000
- Interest Rate: The greater of 10% per annum or one-month LIBOR plus 400 basis points (subject to future increases).
- Maturity Date: February 18, 2014 (10-year term).
- Amortization: Monthly interest payments plus principal based on a 25-year schedule, with a balloon payment of remaining principal at maturity.
- Collateral: Assets and rents of the property located at 42400 Merrill Road, Sterling Heights, Michigan.
- Funding Source: Proceeds from the Company's initial public offering in 2003.
The filing text does not provide clear values for overall company revenue, net profit, total cash flow, operating margins, aggregate debt levels, or liquidity ratios.
Material Changes
The primary material change reported is the deployment of $11,170,000 in capital to Mayco Property Holdings LLC. This represents a new asset on the Company's balance sheet secured by real estate in Michigan. No comparative financial data for prior periods is included in this specific filing.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or a discussion of general risks and contingencies. The only unusual item noted is the specific terms of the loan, which includes a floating interest rate component tied to LIBOR plus a spread, with a floor of 10%.
Investor Verification Checklist
- Verify the creditworthiness of the borrower, Mayco Property Holdings LLC.
- Confirm the current market value and occupancy status of the collateral property at 42400 Merrill Road, Sterling Heights, Michigan.
- Review the Company's remaining cash reserves from the 2003 IPO to assess liquidity after this $11.17 million deployment.
- Monitor the one-month LIBOR rate to determine the actual interest yield if it exceeds the 10% floor.