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Franklin Street Properties Corp. Announces $220 Million Unsecured Seven Year Term Loan With A Fixed Rate



  Franklin Street Properties Corp. Announces $220 Million Unsecured Seven Year
  Term Loan With A Fixed Rate

Business Wire

WAKEFIELD, Mass. -- August 26, 2013

Franklin Street Properties Corp. (the “Company”, “FSP”, “our” or “we”) (NYSE
MKT: FSP) announced today the closing of an unsecured term loan with a group
of banks (the “Term Loan”). The total borrowed under the Term Loan is $220
million. The Term Loan includes an accordion feature that allows for up to $50
million of additional borrowing capacity subject to receipt of lender
commitments and satisfaction of certain customary conditions. The Term Loan
has a term of seven years that matures on August 26, 2020. The Term Loan bears
interest at either (i) a LIBOR based rate plus 145 to 220 basis points
depending on the Company’s total leverage ratio for the applicable period
(LIBOR plus 165 basis points at August 26, 2013) or (ii) a rate equal to the
bank’s base rate plus 45 to 120 basis points depending on the Company’s total
leverage ratio for the applicable period (the bank’s base rate plus 65 basis
points at August 26, 2013). Although the interest rate on the Term Loan is
variable, the Company elected to fix the base LIBOR interest rate at 2.32% per
annum for seven years by entering into an interest rate swap. Accordingly,
based upon the Company’s total leverage ratio, as of August 26, 2013, the
effective interest rate on the Term Loan is 3.97% per annum.

George Carter, President and Chief Executive Officer of FSP said, “We
proactively decided to close this $220 million, seven-year, unsecured term
loan with a fixed rate to assist us in our continuing growth plans. We
anticipate using the net proceeds of this unsecured term loan to fund a
portion of our pending acquisition of 1001 17^th Street, Denver, Colorado,
which we expect to close on August 28, 2013. With this unsecured term loan in
place, as of August 26, 2013, 100% of our total debt is unsecured,
approximately 65% of our total debt is fixed and approximately 35% of our
total debt is variable. We are pleased to put this unsecured term loan in
place and appreciate the confidence shown in FSP by each of the participating
banks.”

Bank of Montreal is serving as Administrative Agent for the Term Loan.
Participating banks include:

Name of Institution                      Title
                                          
Bank of Montreal                         Administrative Agent
PNC Bank, National Association           Syndication Agent
Capital One, N.A.                        Documentation Agent
RBS Citizens, N.A.                       Lender
TD Bank, N.A.                            Lender
Regions Financial Corporation            Lender
BB&T Corporation                         Lender
                                          

About Franklin Street Properties Corp.

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is
focused on investing in institutional-quality office properties in the U.S.
FSP’s strategy is to invest in select urban infill and central business
district (CBD) properties, with primary emphasis on our top five markets of
Atlanta, Dallas, Denver, Houston, and Minneapolis. FSP seeks value-oriented
investments with an eye towards long-term growth and appreciation, as well as
current income. FSP is a Maryland corporation that operates in a manner
intended to qualify as a real estate investment trust (REIT) for federal
income tax purposes. To learn more about FSP please visit our website at
www.franklinstreetproperties.com.

Forward-Looking Statements

Statements made in this press release that state FSP’s or management’s
intentions, beliefs, expectations, or predictions for the future may be
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. This press release may also contain
forward-looking statements based on current judgments and current knowledge of
management, which are subject to certain risks, trends and uncertainties that
could cause actual results to differ materially from those indicated in such
forward-looking statements. Accordingly, readers are cautioned not to place
undue reliance on forward-looking statements. Investors are cautioned that our
forward-looking statements involve risks and uncertainty, including without
limitation, economic conditions in the United States, disruptions in the debt
markets, economic conditions in the markets in which we own properties, risks
of a lessening of demand for the types of real estate owned by us, changes in
government regulations, geopolitical events and expenditures that cannot be
anticipated such as utility rate and usage increases, unanticipated repairs,
additional staffing, insurance increases and real estate tax valuation
reassessments. See the “Risk Factors” set forth in Part I, Item 1A of our
Annual Report on Form 10-K for the year ended December 31, 2012, as the same
may be updated from time to time in subsequent filings with the U.S.
Securities and Exchange Commission. Although we believe the expectations
reflected in the forward-looking statements are reasonable, we cannot
guarantee future results, levels of activity, performance or achievements. We
will not update any of the forward-looking statements after the date of this
press release to conform them to actual results or to changes in our
expectations that occur after such date, other than as required by law.

Contact:

Franklin Street Properties Corp.
John Demeritt, 877-686-9496
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