Gladstone Commercial Corporation Announces Refinancing of $45.3 Million Mortgage

Gladstone Commercial Corporation

reported today that it borrowed $34.0 million, through certain of its wholly-owned subsidiaries, pursuant to a long-term note payable from KeyBank National Association, which is collateralized by security interests in seven of its properties. The note accrues interest at a rate of 4.86% per year and has a maturity date of October 1, 2022. The Company used the proceeds of the note, along with existing cash on hand, to repay its $45.3 million mortgage, which, with extension options, was due October 1, 2013. The Company repaid the mortgage in full on October 1, 2012 without incurring any exit fees. "We are excited to have completed the refinancing of the largest mortgage loan on our balance sheet. This long term loan will allow us to continue our path of growth for 2012 and 2013," said David Gladstone, the Chief Executive Officer of the Company.