Business Context and Reporting Period
This Form 8-K Current Report was filed by Gladstone Commercial Corporation on November 20, 2014. The filing reports a material amendment to the Company's Credit Agreement (Line of Credit) with KeyBank National Association and other lenders, executed through its wholly owned subsidiary, Gladstone Commercial Limited Partnership.
Key Financial Metrics
- Revised Borrowing Capacity: Increased by $15.0 million to $75.0 million.
- Total Maximum Commitment: Increased from $75.0 million to $100.0 million.
- Outstanding Borrowings (as of Nov 20, 2014): $28.9 million.
- Remaining Availability: $29.3 million.
- Transaction Costs: Modification fees of 50 basis points were paid on the additional $15.0 million commitment.
Material Changes
The primary change reported is the expansion of the Company's credit facility. The amendment increased both the borrowing capacity and the total maximum commitment, providing additional liquidity headroom. The filing does not provide comparative financial data for prior periods regarding revenue, profit, or cash flow, as this report focuses solely on the credit facility amendment.
Outlook, Risks, and Management Commentary
The filing does not contain forward-looking guidance, management commentary on future performance, or a discussion of risks beyond the standard incorporation by reference of the full credit agreement text. The Company notes that the description of the Line of Credit is qualified by the full text of the Second Amendment filed as Exhibit 10.1.
Investor Verification Checklist
- Verify the terms of the Second Amendment to the Credit Agreement in Exhibit 10.1 for interest rate changes or covenants not detailed in the summary.
- Confirm the utilization rate of the new $100.0 million commitment relative to the Company's current asset base.
- Review the impact of the 50 basis point modification fee on the Company's immediate cash flow.
- Check subsequent filings for any further changes to the outstanding borrowing balance of $28.9 million.