Gladstone Commercial (NASDAQ: GOOD) sells $85,000,000 5.99% senior guaranteed notes

Rhea-AI Filing Summary

Gladstone Commercial Corporation, through its operating partnership, has privately issued $85,000,000 of 5.99% Senior Guaranteed Notes due December 15, 2030. The notes are senior unsecured obligations of the partnership, fully guaranteed by the company and certain subsidiaries, and were sold at 100% of their principal amount.

The notes pay a fixed 5.99% annual interest rate, with semi-annual payments each June 15 and December 15 beginning June 15, 2026, and may be prepaid subject to a make-whole premium except within 30 days of maturity. If the notes are rated below “BBB-” under specified rating conditions, the interest rate increases by 1.00%. Gladstone Commercial plans to use the proceeds to repay borrowings under its revolving line of credit, repay term loan debt under its main credit agreement, and for general corporate purposes.

Insights

Credit and REIT capital markets analyst

Gladstone Commercial refinances debt with $85,000,000 of fixed-rate unsecured notes due 2030.

Gladstone Commercial, via its operating partnership, issued $85,000,000 of 5.99% Senior Guaranteed Notes due December 15, 2030 in a private placement. The notes are senior unsecured obligations, fully guaranteed by the company and subsidiaries that also back the main credit facility, and were sold at 100% of principal amount.

The notes carry a fixed 5.99% annual coupon with semi-annual interest payments starting June 15, 2026, giving the partnership long-term, locked-in funding. A ratings-based “BIG Event” clause increases the interest rate by 1.00% if the notes fall below “BBB-” under specified rating-agency conditions, compensating investors for a weaker credit profile.

Prepayment is allowed in minimum blocks of 5% of principal, generally with a make-whole premium, while prepayments within 30 days of maturity avoid any premium. Proceeds are earmarked to repay borrowings under the revolving line of credit, repay term loan debt under the existing credit facility, and for general corporate purposes, shifting a portion of bank debt into longer-dated unsecured notes under customary covenants and default provisions.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 15, 2025

Gladstone Commercial Corporation

(Exact Name of Registrant as Specified in Charter)

Maryland		001-33097		02-0681276
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(I.R.S. Employer Identification Number)

1521 Westbranch Drive, Suite 100, McLean, Virginia 22102

(Address of Principal Executive Offices) (Zip Code)

(703) 287-5800

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.001 par value per share		GOOD		The Nasdaq Stock Market LLC
6.625% Series E Cumulative Redeemable Preferred Stock, par value $0.001 per share		GOODN		The Nasdaq Stock Market LLC
6.00% Series G Cumulative Redeemable Preferred Stock, par value $0.001 per share		GOODO		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 1.01 Entry into a Material Definitive Agreement.

On December 15, 2025, Gladstone Commercial Corporation (the “Company”), Gladstone Commercial Limited Partnership (the “Partnership”), the majority-owned operating partnership of the Company, entered into a Note Purchase Agreement (the “Agreement”) with the institutional investors named therein (the “Purchasers”) in connection with a private placement of senior guaranteed notes of the Partnership. Pursuant to the Agreement, the Partnership issued to the Purchaser $85,000,000 million aggregate principal amount of its 5.99% Senior Guaranteed Notes due December 15, 2030 (the “Notes”). The Notes are the Partnership’s senior unsecured obligations and are guaranteed by the Company and each of the subsidiaries (the “Subsidiary Guarnators”) that guarantees the Partnership’s obligations under the Fifth Amended and Restated Credit Agreement and Other Loan Documents, dated as of October 10, 2025, by and among Partnership, as borrower, the Company and certain of its wholly owned subsidiaries, as guarantors, each of the financial institutions initially a signatory thereto together with their successors and assignees, as lenders, and KeyBank National Association, as lender and agent (the “Credit Facility”). The issue price for the Notes was 100% of the aggregate principal amount thereof. The sale and purchase of the Notes occurred on December 15, 2025. In accordance with the requirements of the Note Purchase Agreement, on December 15, 2025, the Company and the Subsidiary Guarantors entered into an Unconditional Guaranty of Payment and Performance (the “Guaranty Agreement”) to evidence their guarantee of the Notes.

The Notes bear interest at an annual fixed rate of 5.99% and mature on December 15, 2030. Interest is payable semi-annually on June 15 and December 15 of each year, beginning on June 15, 2026.

The Partnership may at any time prepay not less than 5% of the aggregate principal amount of the Notes, in whole or in part, at a price equal to 100% of the principal amount thereof plus accrued and unpaid interest plus a “make-whole” prepayment premium; provided, that at any time on or after the date 30 days prior to the maturity date of the Notes the Partnership may, at its option prepay all or any part of the Notes at 100% of the principal amount so prepaid, together with accrued interest to the prepayment date without any make-whole or other premium. In the event of a Change in Control (as defined in the Agreement) of the Company, the Company may be required to offer to prepay the Notes at a price equal to 100% of the principal amount of such Notes, together with interest on such Notes accrued to the date of prepayment, but without any make-whole or other premium.

The Agreement contains customary terms and conditions for senior unsecured notes issued in a private placement, including, without limitation, affirmative and negative covenants that are generally consistent with the covenants contained in the Credit Facility and include, without limitation, limitations on the Company, Partnership and its subsidiaries with respect to incurrence of indebtedness, disposition of assets, mergers and transactions with affiliates. The Agreement contains customary events of default with customary grace periods, as applicable. Certain covenants in the Agreement will automatically adjust to match the Credit Facility in the event the corresponding sections under the Credit Facility are amended or modified.

In addition, in the event that (i) the Notes are rated below “BBB-” by at least one rating agency if the Notes are rated by one agency, (ii) if the Notes are rated by two ratings agencies, the Notes are rated below “BBB-“ by the lower of such ratings, or (iii) if the Notes are rated by three or more ratings agencies, the Notes are rated below “BBB-“ by the second lowest of such ratings (each, a “BIG Event”), the Notes will bear interest at a fixed rate per annum that is 1.00% above the stated rate of the Notes for so long as the BIG Event is no longer continuing.

The Partnership intends to use the proceeds of the offering to repay borrowings under the Partnership’s revolving line of credit, to repay term loan debt under the Credit Facility, and for general corporate purposes.

The Notes are being sold in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Regulation D promulgated thereunder. The Notes have not been and will not be registered under the Securities Act or any state or other jurisdiction’s 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 or other jurisdictions’ securities laws.

The foregoing descriptions of the Notes, the Guaranty Agreement, and the Agreement do not purport to be complete and are qualified in their entirety by reference to the full text of the form of Notes, the form of Guaranty Agreement, and the Agreement, which are filed as Exhibits 4.1, 10.1 and 10.2, respectively, to this report and are incorporated in this item 1.01 by reference.

Item 2.03 - Creation of a Direct Financial Obligation.

The information set forth under Item 1.01 above is incorporated by reference into this Item 2.03.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
4.1		Form of 5.99% Senior Guaranteed Notes due December 15, 2030 (included as Schedule 1 to the Note Purchase Agreement filed herewith as Exhibit 10.1).
10.1		Note Purchase Agreement, dated December 15, 2025 by and among Gladstone Commercial Limited Partnership, Gladstone Commercial Corporation and the Purchasers party thereto. †
10.2		Form of Unconditional Guaranty of Payment and Performance.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

† Certain exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule will be furnished supplementally to the SEC upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended, for any document so furnished. Additionally, portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K because such portions are (i) not material and (ii) are the type of information the registrant customarily and actually treats as private or confidential.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

				Gladstone Commercial Corporation (Registrant)
December 15, 2025				By:		/s/ Gary Gerson
						Gary Gerson Chief Financial Officer

FAQ

What new debt financing did Gladstone Commercial (GOOD) complete?

Gladstone Commercial’s operating partnership issued $85,000,000 of 5.99% Senior Guaranteed Notes due December 15, 2030 in a private placement sold at 100% of principal.

What are the key terms of Gladstone Commercial's 5.99% Senior Guaranteed Notes?

The notes have a fixed 5.99% annual interest rate, mature on December 15, 2030, and pay interest semi-annually on June 15 and December 15 each year, starting June 15, 2026. They are senior unsecured obligations guaranteed by the company and certain subsidiaries.

How will Gladstone Commercial (GOOD) use the proceeds from the senior notes?

The partnership intends to use the proceeds to repay borrowings under its revolving line of credit, repay term loan debt under its main credit facility, and for general corporate purposes.

Can Gladstone Commercial prepay the 5.99% Senior Guaranteed Notes?

Yes. The partnership may prepay at any time at least 5% of the aggregate principal amount, in whole or in part, at 100% of principal plus accrued interest and a make-whole premium. Within 30 days before maturity, it may prepay all or any part at 100% of principal plus accrued interest without any premium.

What happens if Gladstone Commercial's notes are rated below BBB-?

If a specified ratings-based event (a “BIG Event”) occurs, in which the notes are rated below “BBB-” under the conditions described, the notes will bear interest at a rate that is 1.00% above the stated 5.99% rate.

Are Gladstone Commercial's 5.99% notes registered with the SEC?

No. The notes are being sold in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act and Regulation D. They have not been and will not be registered under the Securities Act or state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption.

Who guarantees Gladstone Commercial's new senior notes?

The notes are guaranteed by Gladstone Commercial Corporation and each of the subsidiary guarantors that also guarantee the partnership’s obligations under its Fifth Amended and Restated Credit Agreement and related loan documents.