GLADSTONE COMMERCIAL CORP - 8-K Summary
Business Context and Reporting Period
This Form 8-K Current Report was filed by Gladstone Commercial Corporation on December 28, 2006, covering events occurring on December 22, 2006. The filing details the entry into a material definitive agreement involving the acquisition of long-term debt secured by specific real estate assets.
Key Financial Metrics
- Total Debt Obligation: $21,846,000
- Interest Rate: 5.79% per annum
- Maturity Date: January 1, 2017
- Prepayment Terms: No prepayment penalty after October 1, 2016
- Proceeds Usage: Invested in a money market account
Material Changes and Transaction Details
The Company, through wholly-owned subsidiaries, secured a long-term note payable by collateralizing three properties:
- Newburyport, Massachusetts: $6,846,000
- Toledo, Ohio: $3,000,000
- Burnsville, Minnesota: $12,000,000
This transaction created a direct financial obligation with CIBC, Inc. The filing does not provide comparative financial data (revenue, profit, cash flow, or margins) as this is a current report regarding a specific financing event rather than a periodic financial statement.
Outlook, Risks, and Management Commentary
The filing does not contain forward-looking guidance, management commentary on future performance, or a discussion of general risks beyond the specific terms of the new debt obligation. The immediate liquidity impact is neutralized by the investment of proceeds into a money market account.
Key Facts for Investor Verification
- Verify the specific lease terms and occupancy status of the Newburyport, Toledo, and Burnsville properties securing the debt.
- Confirm the impact of the 5.79% interest rate on the Company's overall cost of capital and net income.
- Review the Company's total leverage ratio post-transaction to assess debt capacity.
- Monitor the timing of the prepayment option becoming available on October 1, 2016.