Gladstone Commercial Announces Issuance of $75 million of Senior Unsecured Notes
Gladstone Commercial (Nasdaq:GOOD) announced that its subsidiary, Gladstone Commercial Partnership, has closed $75 million in 6.47% senior unsecured notes due December 18, 2029, through a private placement with institutional investors. The proceeds will be used to repay outstanding debt under its senior unsecured revolving credit facility, pre-pay a portion of its $60 million Term Loan B facility, and for general corporate purposes.
This marks Gladstone's first issuance in the long-term unsecured debt market, representing a strategic shift away from secured mortgage debt. KeyBanc Capital Markets led the placement, with Bank of America Securities, Goldman Sachs, Huntington Securities, and Fifth Third Securities serving as co-placement agents.
Gladstone Commercial (Nasdaq:GOOD) ha annunciato che la sua controllata, Gladstone Commercial Partnership, ha chiuso 75 milioni di dollari in note senior non garantite al 6,47% con scadenza il 18 dicembre 2029, attraverso una collocazione privata con investitori istituzionali. I proventi saranno utilizzati per ripagare il debito in sospeso sotto il suo finanziamento revolving senior non garantito, per prepagare una parte del suo finanziamento Term Loan B da 60 milioni di dollari e per scopi generali aziendali.
Questa rappresenta la prima emissione di Gladstone nel mercato del debito non garantito a lungo termine, segnando un cambiamento strategico dall'indebitamento garantito da mutuo. KeyBanc Capital Markets ha guidato il collocamento, con Bank of America Securities, Goldman Sachs, Huntington Securities e Fifth Third Securities che hanno funto da co-agenti di collocamento.
Gladstone Commercial (Nasdaq:GOOD) anunció que su subsidiaria, Gladstone Commercial Partnership, ha cerrado 75 millones de dólares en notas senior no garantizadas al 6.47% con vencimiento el 18 de diciembre de 2029, a través de una colocación privada con inversores institucionales. Los ingresos se utilizarán para pagar la deuda pendiente bajo su facilidad de crédito revolving senior no garantizada, para prepagar una parte de su préstamo Term Loan B de 60 millones de dólares y para fines corporativos generales.
Esto marca la primera emisión de Gladstone en el mercado de deuda no garantizada a largo plazo, representando un cambio estratégico alejado de la deuda hipotecaria garantizada. KeyBanc Capital Markets lideró la colocación, con Bank of America Securities, Goldman Sachs, Huntington Securities y Fifth Third Securities como co-agentes de colocación.
글래드스톤 상업 (Nasdaq:GOOD)은 그 자회사인 글래드스톤 상업 파트너십이 7,500만 달러의 6.47% 최고 무담보 채권을 2029년 12월 18일 만기로 기관 투자자와의 사모 배정을 통해 마감했다고 발표했다. 수익은 최고 무담보 회전 신용 시설의 미지급 부채를 상환하고, 6천만 달러 Term Loan B 시설의 일부를 선지급하며, 일반 기업 목적에 사용될 예정이다.
이것은 글래드스톤이 장기 무담보 채권 시장에서 첫 번째 발행을 의미하며, 담보 대출에서의 전략적 변화를 나타낸다. KeyBanc Capital Markets가 배정을 주도했으며, Bank of America Securities, Goldman Sachs, Huntington Securities 및 Fifth Third Securities가 공동 배정 대행사로 참여했다.
Gladstone Commercial (Nasdaq:GOOD) a annoncé que sa filiale, Gladstone Commercial Partnership, a clôturé 75 millions de dollars en obligations seniors non garanties à 6,47% arrivant à échéance le 18 décembre 2029, grâce à une placement privé auprès d'investisseurs institutionnels. Les fonds seront utilisés pour rembourser la dette en cours sous son crédit revolving senior non garanti, pour prépayer une partie de son prêt Term Loan B de 60 millions de dollars, et pour des fins d'entreprise générale.
Ceci marque la première émission de Gladstone sur le marché de la dette non garantie à long terme, représentant un changement stratégique éloigné de la dette hypothécaire garantie. KeyBanc Capital Markets a dirigé le placement, avec Bank of America Securities, Goldman Sachs, Huntington Securities et Fifth Third Securities en tant qu'agents de placement co-directeurs.
Gladstone Commercial (Nasdaq:GOOD) gab bekannt, dass ihre Tochtergesellschaft, Gladstone Commercial Partnership, 75 Millionen US-Dollar in 6,47% senior unbesicherten Anleihen mit Fälligkeit am 18. Dezember 2029 über eine Privatplatzierung mit institutionellen Investoren abgeschlossen hat. Die Erlöse werden verwendet, um ausstehende Schulden unter ihrer senior unbesicherten revolvierenden Kreditfazilität zurückzuzahlen, um einen Teil ihrer 60 Millionen US-Dollar Term Loan B-Fazilität vorzeitig zu tilgen und für allgemeine Unternehmenszwecke.
Dies markiert Gladstones erste Emission im Markt für langfristige unbesicherte Schulden und stellt einen strategischen Wechsel weg von besichertem Hypothekenschulden dar. KeyBanc Capital Markets führte die Platzierung, während Bank of America Securities, Goldman Sachs, Huntington Securities und Fifth Third Securities als Co-Platzierungsagenten fungierten.
- Secured $75 million in long-term financing at 6.47% interest rate
- Strategic diversification of funding sources with first long-term unsecured debt issuance
- Debt restructuring potentially improving financial flexibility
- Additional debt burden with 6.47% interest rate obligations
- Increased leverage through new $75 million notes
Insights
The issuance of
The debt refinancing strategy aims to optimize the capital structure by shifting away from secured mortgage debt towards unsecured financing, which offers greater operational flexibility. Using proceeds to repay revolving credit facility debt and pre-pay term loan obligations should help improve the company's debt maturity profile and potentially reduce overall borrowing costs.
The successful private placement with institutional investors demonstrates strong market confidence in Gladstone's credit quality. The participation of major financial institutions as placement agents (KeyBanc, BofA, Goldman Sachs) further validates the offering's attractiveness to sophisticated investors.
This debt issuance strengthens Gladstone Commercial's financial positioning in the commercial REIT sector. The transition from secured to unsecured debt provides enhanced operational flexibility and potentially faster access to capital markets for future growth opportunities. The
The diversification of funding sources through institutional investors rather than traditional bank lending demonstrates market confidence in Gladstone's business model and asset quality. For comparison, many commercial REITs are currently facing challenges in securing favorable financing terms, making this successful placement particularly noteworthy.
Think of this like upgrading from a mortgage to a credit line - it gives more freedom in how the company can use its properties while maintaining financial stability. For retail investors, this development signals improved financial flexibility and potentially stronger growth prospects for Gladstone Commercial.
MCLEAN, VA / ACCESSWIRE / December 18, 2024 / Gladstone Commercial Corporation (Nasdaq:GOOD) ("Gladstone Commercial") today announced that its subsidiary, Gladstone Commercial Limited Partnership ("Gladstone LP"), has closed
Gladstone LP plans to use the proceeds to repay outstanding indebtedness under its senior unsecured revolving credit facility, to pre-pay a portion of its
"We are excited by the support of high-quality, long-term institutional investors in this debt private placement, which was executed on attractive terms. In addition, this marks our first issuance in the long-term unsecured debt market and the continuance of our movement away from secured mortgage debt," stated Buzz Cooper, President of Gladstone Commercial.
The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful.
KeyBanc Capital Markets Inc. acted as Lead Placement Agent, with Bank of America Securities, Inc., Goldman Sachs & Co. LLC, Huntington Securities, Inc. and Fifth Third Securities, Inc. serving as Co-Placement Agents. Squire Patton Boggs (US) LLP acted as counsel to Gladstone Commercial and Gladstone LP, and Venable LLP acted as Maryland counsel to Gladstone Commercial. Chapman and Cutler LLP acted as counsel to the purchasers.
About Gladstone Commercial (Nasdaq: GOOD)
Gladstone Commercial is a real estate investment trust focused on acquiring, owning and operating net leased industrial and office properties across the United States. As of September 30, 2024, Gladstone Commercial's real estate portfolio consisted of 135 properties located in 27 states, totaling approximately 16.8 million square feet. For additional information, please visit www.gladstonecommercial.com.
Investor or Media Inquiries:
Buzz Cooper | Catherine Gerkis |
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President | Director of Investor Relations/ESG |
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(703) 287-5815 | (703) 287-5846 |
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All statements contained in this press release, other than historical facts, may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements involve inherent risks and uncertainties as they relate to expectations, beliefs, projections, future plans and strategies, anticipated events, or trends concerning matters that are not historical facts and may ultimately prove to be incorrect or false. Forward-looking statements include information about possible or assumed future events, including, without limitation, those relating to the expected use of proceeds from the sale of the Notes. Words such as "may," "will," "anticipate," "future," "could," "plan," "intend," "expect," "would," and "possible," and variations of these words and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements contain these words. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those included within or contemplated by such statements, including, but not limited to, the description of risks and uncertainties in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" of Gladstone Commercial's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as filed with the Securities and Exchange Commission (the "SEC") on February 21, 2024, and certain other filings made with the SEC. Gladstone Commercial cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date made. Gladstone Commercial undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
For further information: Gladstone Commercial Corporation, (703) 287-5893
For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstonecompanies.com.
SOURCE: Gladstone Commercial Corporation
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FAQ
What is the interest rate and maturity of Gladstone Commercial's (GOOD) new senior unsecured notes?
How will Gladstone Commercial (GOOD) use the proceeds from the $75 million notes?
Who were the placement agents for Gladstone Commercial's (GOOD) $75 million notes offering?
What type of investors purchased Gladstone Commercial's (GOOD) December 2024 notes?
