Gladstone Commercial Corporation’s subsidiary, Gladstone Commercial Limited Partnership, completed a private placement of $85 million in 5.99% senior unsecured notes due December 15, 2030, on December 15, 2025.
The notes were sold to institutional investors at a fixed coupon of 5.99% and will mature on December 15, 2030. The placement is the company’s second long‑term unsecured debt issuance, following a $75 million issuance in December 2024.
Proceeds will be used to retire outstanding obligations under the company’s senior unsecured revolving credit facility and to refinance higher‑cost debt, thereby reducing the overall cost of capital and extending the maturity profile of the balance sheet.
The transaction complements a recent expansion of the company’s syndicated credit facility, which was upsized to $600 million in October 2025 and can be increased to $850 million. With total debt around $851 million and a current ratio of 3.32, the refinancing strengthens liquidity while preserving the firm’s ability to fund growth and acquisitions.
Gladstone’s portfolio, as of September 30, 2025, includes 151 properties totaling 17.7 million square feet across 27 states, with an occupancy rate consistently above 95 %. The company has maintained a dividend for 23 consecutive years, yielding roughly 11 % today, underscoring its commitment to shareholder returns while managing debt levels.
President Buzz Cooper said the placement “demonstrates the confidence of institutional investors in our strategy to shift away from secured mortgage debt toward more flexible unsecured financing.” He added that the move supports the company’s long‑term capital structure goals and provides a buffer for future market opportunities.
By reducing borrowing costs and extending debt maturities, the notes give Gladstone greater financial flexibility to pursue opportunistic acquisitions, support portfolio expansion, and maintain a robust dividend policy, positioning the company for continued growth in a competitive real‑estate market.
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