MCLEAN, Va., Nov. 23, 2015 (GLOBE NEWSWIRE) -- Gladstone Commercial Corporation (NASDAQ:GOOD) ("Gladstone Commercial" or the "Company"), a real estate investment trust focused on acquiring, owning and operating net leased office and industrial properties, announced today that it has completed the refinancing of $18.6 million of mortgage debt that was set to expire in 2015 and early 2016, with $3.6 million of new mortgage debt. The remainder was repaid using proceeds from the Company's line of credit.
This announcement brings year to date refinancing to $48.9 million at a new weighted average interest rate of 2.57%. Prior to the refinancing, the mortgages carried a weighted average interest rate of 5.45%. The combined refinancing will reduce the Company's annual debt service by $1.8 million.
The $3.6 million of new debt was issued by First Niagara Bank at an interest rate of 1-month LIBOR + 2.25%, a current rate of approximately 2.45%. The prior mortgage carried an interest rate of 5.81%. The refinancing will reduce annual debt service by approximately $0.12 million.
"This year's refinancings are the latest examples of our team's ability to take advantage of opportunities created by today's debt market," said Bob Cutlip, President of Gladstone Commercial. "These transactions strengthen our financial position by significantly reducing our interest costs which will be a benefit to our shareholders. We will continue to explore refinancing transactions to further create short and long-term shareholder value."
About Gladstone Commercial Corporation (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. Gladstone Commercial's real estate portfolio consists of 101 properties located in 24 states, totaling approximately 11.1 million square feet. For additional information please visit www.gladstonecommercial.com.
|For Broker Submittals:|
|Buzz Cooper||Andrew White|
|Senior Managing Director||Managing Director|
|(703) 287-5815||(310) 953-4960|
|Matt Tucker||Brandon Flickinger|
|(703) 287-5830||(703) 287-5819|
|Investor or Media Inquiries:|
|President – Gladstone Commercial Corporation|
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 of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. Readers should not rely upon forward-looking statements because the matters they describe are subject to known and unknown risks and uncertainties that could cause the Company's business, financial condition, liquidity, results of operations, funds from operations or prospects to differ materially from those expressed in or implied by such statements. Such risks and uncertainties are disclosed under the caption "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, as filed with the SEC on February 18, 2015 and the Company's Form 10-Q for the quarter ended June 30, 2015, as filed with the SEC on August 3, 2015. The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstone.com.
Source:Gladstone Commercial Corporation