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Key Bank Leads $50MM Upsize for Gladstone Commercial Corp.

November 01, 2017, 07:00 AM
Filed Under: Real Estate

Gladstone Commercial Corporation, a real estate investment trust focused on acquiring, owning and operating net leased industrial and office properties, announced that it amended, extended and upsized its existing, syndicated revolving credit and term loan facility from $110 million to $160 million. The term loan component of the facility was upsized by $50 million to $75 million with the revolving credit facility remaining unchanged at $85 million. The Company used the net proceeds of the amended and upsized facility to term out all previously existing borrowings under the revolving credit facility.

The term loan facility has a five year term with a maturity date of October 27, 2022 and the revolving credit facility has a four year term with a maturity date of October 27, 2021. The pricing grid for the amended facility was revised with a spread decrease of 25 basis points for both revolving credit and term loan facility borrowings. The company also executed interest rate caps on the entire term loan facility.

Jay Beckhorn, Treasurer of Gladstone Commercial, stated, "We're pleased to announce the successful execution of this transaction with the support of our bank group, led by Key Bank and joined by Fifth Third Bank, U.S. Bank, and Huntington Bank. It provides us with significant liquidity, a dramatically extended debt maturity profile as well as an improved interest rate on this debt going forward."

Mike Sodo, Chief Financial Officer of Gladstone Commercial, added, "This transaction demonstrates the strong relationship we've cultivated with our lenders. We believe that this facility will further position us to achieve the long-term goals of our company."

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