Business Context and Reporting Period
Company: Gladstone Commercial Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: March 17, 2006
Event: Entry into a Material Definitive Agreement regarding an amendment to the Company's line of credit.
Key Financial Metrics
This filing reports on debt capacity and liquidity rather than operating performance. No revenue, profit, or cash flow data is provided in this document.
- Revised Credit Line Maximum: $75 million (increased from $60 million).
- Available Borrowing Capacity (as of March 22, 2006): $62.9 million.
- Outstanding Borrowings (as of March 22, 2006): $35.3 million.
- Arranger: BB&T Capital Markets.
- Agent: Branch Banking and Trust Company.
- Syndicate Participants: First Horizon Bank and Compass Bank.
Material Changes
The primary material change is the expansion of the Company's revolving credit facility. The maximum availability was increased by $15 million, representing a 25% increase in total credit capacity compared to the previous limit of $60 million. This amendment was executed on March 17, 2006, following prior amendments in April and July 2005.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future operations, or specific risk factors beyond the standard disclosure of the credit agreement amendment. The document serves strictly to disclose the terms of the updated financing arrangement.
Investor Verification Checklist
- Verify the utilization rate of the credit line ($35.3 million outstanding vs. $62.9 million available).
- Review the full text of Exhibit 10.28 (Third Amendment to Credit Agreement) for interest rate terms, covenants, and maturity dates.
- Confirm the purpose of the increased credit capacity in the context of the Company's recent or planned real estate acquisitions.
- Check subsequent filings for any further amendments or changes to the outstanding balance.