Franklin Street Properties Announces Offering Of 6,125,000 Shares Of Common Stock
August 10 2016 - 4:08PM
Business Wire
Franklin Street Properties Corp. (the “Company”
or “FSP”) (NYSE MKT: FSP) today announced that it has commenced an
underwritten public offering of 6,125,000 shares of its common
stock. The underwriters are expected to be granted a 30-day option
to purchase up to an additional 918,750 shares.
The Company intends to use the net proceeds of
the offering to repay approximately $45.5 million under its senior
unsecured revolving credit facility that was recently borrowed in
anticipation of funding the acquisition of Pershing Park Plaza, an
urban infill Class “A” office property located at 1420 Peachtree
Street, NE, Atlanta, Georgia, and to fund estimated redevelopment
costs of $15 million to $20 million at its property at 801
Marquette Avenue, Minneapolis, Minnesota. The offering is not
contingent upon the redevelopment of 801 Marquette.
Any proceeds of the offering not applied to the
Pershing Park Plaza acquisition or the 801 Marquette redevelopment
will be used to repay amounts outstanding under the Company’s
senior unsecured revolving credit facility and/or for general
corporate purposes, including funding future acquisitions and
investments.
Baird and BMO Capital Markets are acting as
active bookrunners, Stifel is acting as passive bookruner and
Wunderlich is acting as senior co-manager for the offering.
This offering will be made pursuant to a
prospectus supplement to the Company’s prospectus, dated January
12, 2015, filed as part of the Company’s effective shelf
registration statement relating to these securities. This press
release shall not constitute an offer to sell or the solicitation
of an offer to buy the shares described herein or any other
securities, nor shall there be any sale of these shares in any
state or other jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of such state or other jurisdiction. The
offering may be made only by means of a prospectus supplement and
the related prospectus.
A copy of the preliminary prospectus supplement
and the final prospectus supplement (when available) relating to
the shares can be obtained by contacting the underwriters as
follows: Robert W. Baird & Co. Incorporated, 777 E. Wisconsin
Avenue, Milwaukee, WI 53202, Attn: Syndicate Department or by
telephone at (800) 792-2473 or by email at syndicate@rwbaird.com;
BMO Capital Markets, 3 Times Square, 25th Floor, New York, NY
10036, Attn: Syndicate Desk or by telephone at (800) 414-3627;
Stifel, Nicolaus & Company, Incorporated, Attn: Syndicate
Department, One South Street, 15th Floor, Baltimore, MD 21202, or
by telephone at (855) 300‐7136 or by email to
SyndProspectus@stifel.com; or Wunderlich Securities, Inc., Attn:
Equity Syndicate, 6000 Poplar Avenue, Suite 150, Memphis, TN
38119, or by email at syndicate@wundernet.com. You may also
obtain these documents by visiting the EDGAR database on the SEC’s
web site at www.sec.gov.
About Franklin Street Properties
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.
Forward-Looking Statements
Certain matters discussed in this press release
are forward-looking statements within the meaning of the federal
securities laws and are subject to uncertainties and risk and
actual results may differ materially from projections, including
matters related to the commenced public offering and intended use
of proceeds. Readers should carefully review the Company’s
financial statements and notes thereto, as well as the risk factors
described in the prospectus supplement for the offering and in
Part I, Item 1A of the Company’s Annual Report on Form
10-K for the year ended December 31, 2015 and other documents
the Company files from time to time with the Securities and
Exchange Commission. Such forward-looking statements are based on
current expectations and speak as of the date of such statements.
The Company undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of future
events, new information or otherwise.
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