Franklin Street Properties Announces Pricing of Common Stock Offering
August 11 2016 - 9:13AM
Business Wire
Franklin Street Properties Corp. (the “Company” or “FSP”) (NYSE
MKT: FSP) today announced the pricing of its previously-announced
public offering of 6,125,000 shares of its common stock at a price
of $12.35 per share, for net proceeds of approximately $72.1
million after underwriting discounts and commissions and estimated
offering expenses (or approximately $83.0 million if the
underwriters' option to purchase additional shares is exercised in
full). FSP has granted the underwriters the option to purchase up
to an additional 918,750 shares of common stock. The offering is
expected to close on August 16, 2016.
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 bookrunner and Wunderlich is acting as
senior co-manager for the offering. BTIG, Capital One Securities,
PNC Capital Markets LLC and TD Securities are acting as co-managers
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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