Franklin Street Properties Corp. Announces Recast of Existing $220 Million Unsecured Term Loan
September 27 2018 - 4:30PM
Business Wire
Franklin Street Properties Corp. (the “Company”, “FSP”, “our” or
“we”) (NYSE American: FSP) announced today that it recast its
existing $220 million unsecured term loan (as amended, the “BMO
Term Loan”) with Bank of Montreal (“BMO”) continuing to serve as
Administrative Agent. A summary of key terms is below:
- Principal amount outstanding of $220
million remained unchanged, but was allocated $55 million to a
tranche A term loan and $165 million to a tranche B term loan.
- Maturity date was extended from August
26, 2020 to November 30, 2021 for the tranche A term loan and to
January 31, 2024 for the tranche B term loan.
- Depending on the Company’s credit
rating, the margin over LIBOR decreased from a range of 105-215
basis points to a range of 85-165 basis points. In addition,
depending on the Company’s credit rating, the margin over the base
rate decreased from a range of 5-115 basis points to a range of
0-65 basis points. Based on the Company’s credit rating of Baa3
with Moody’s as of September 27, 2018, our margin over LIBOR
decreased from 165 basis points to 125 basis points.
FSP was represented by Wilmer Cutler Pickering Hale and Dorr LLP
and BMO was represented by Chapman and Cutler LLP. Participating
banks include:
Name of
Institution
Title
Bank of Montreal
Administrative Agent, Joint Bookrunner and
Joint Lead Arranger
PNC Bank, National Association
Joint Bookrunner, Joint Lead Arranger and
Syndication Agent
Regions Capital Markets, a division of
Regions Bank
Joint Bookrunner, Joint Lead Arranger
Regions Bank
Co-Documentation Agent
Capital One Bank, National Association
Joint Bookrunner, Joint Lead Arranger and
Co-Documentation Agent
U.S. Bank National Association Lender Branch Banking
and Trust Company Lender
George J. Carter, Chairman and Chief Executive Officer of FSP,
said, “We believe that the recast of our term loan with BMO helps
to better align the risk/reward characteristics of our capital
structure with the long-term, value-add growth opportunities that
we believe exist in our now predominantly urban and infill office
property portfolio. We appreciate the continued confidence shown in
FSP by each of the participating banks.”
This press release, along with other news about FSP, is
available on the Internet at www.fspreit.com. We routinely post
information that may be important to investors in the Investor
Relations section of our website. We encourage investors to consult
that section of our website regularly for important information
about us and, if they are interested in automatically receiving
news and information as soon as it is posted, to sign up for E-mail
Alerts.
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 five core 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.fspreit.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 and regulatory uncertainty,
uncertainty about governmental fiscal policy, 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, 2017, as the
same may be updated from time to time in subsequent filings with
the United States 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, acquisitions, dispositions, 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.
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