Gladstone to create class of senior shares

AP News
Posted: Nov 23, 2009 5:46 PM

Gladstone Commercial Corp., a real estate investment trust, said Monday it will create a new class of ownership by offering senior common shares in a private sale.

It plans to sell 3.3 million shares at $15 per share in a private sale for gross proceeds of as much as $50 million. The shares to be sold would be newly issued shares that have priority over existing common stock. The shares will be sold by dealer brokers who have no obligation to buy any of the shares.

The offer will expire either when $50 million in shares have been sold or Nov. 19, whichever comes first.

The company, based in McLean, Va., also plans to offer an additional 500,000 senior common shares at $15 per share pursuant to a distribution reinvestment plan to buyers.

Gladstone plans to use the proceeds to invest in additional properties and mortgages, pay back debt, buy back shares and for general expenses.

In midday trading, the company's shares rose 10 cents to $13.77.