SOURCE: Franklin Street Properties Corp.

February 22, 2011 21:24 ET

Franklin Street Properties Corp. Announces New $500 Million Credit Facility

WAKEFIELD, MA--(Marketwire - February 22, 2011) - Franklin Street Properties Corp. (the "Company", "FSP", "our" or "we") (NYSE Amex: FSP), an investment firm specializing in real estate, today announced the closing of a new credit facility with a group of banks (the "New Revolver"). The total availability under the New Revolver is $500 million. The New Revolver also includes an accordion feature that allows for up to $100 million of additional borrowing capacity subject to receipt of lender commitments and satisfaction of certain customary conditions. As part of the closing, the Company's $250 million credit facility and $75 million term loan (and interest rate swap) will be repaid from the proceeds of the New Revolver and terminated. The New Revolver has an initial term of three years that matures on February 22, 2014 and also has a one-year extension option. The New Revolver bears interest at either (i) a LIBOR based rate plus 185 to 300 basis points depending on the Company's total leverage ratio at the time of the borrowing or (ii) a rate equal to the bank's base rate plus 85 to 200 basis points depending on the Company's total leverage ratio at the time of the borrowing. Based on the Company's current total leverage ratio, the New Revolver will initially bear interest at the LIBOR based rate plus 185 basis points.

George Carter, President and Chief Executive Officer of FSP, said, "We are pleased to put this new, unsecured credit facility in place and appreciate the confidence shown in FSP by each of the participating banks. We proactively decided to increase the size of the New Revolver to strengthen our ability to capitalize on additional acquisition opportunities that we believe could enhance long-term value for our shareholders."

Bank of America, N.A. is serving as Administrative Agent for the New Revolver. FSP was represented by Wilmer Cutler Pickering Hale and Dorr LLP and Bank of America, N.A. was represented by Goulston & Storrs PC. Participating banks include:

Name of Institution   Title
Bank of America, N.A.   Administrative Agent
RBS Citizens, National Association   Documentation Agent
PNC Bank, National Association   Lender
Compass Bank   Lender
Regions Bank   Lender
U.S. Bank National Association   Lender
Capital One, N.A.   Lender
TD Bank, N.A.   Lender
Branch Banking and Trust Company   Lender

About Franklin Street Properties Corp.

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on achieving current income and long-term growth through investments in commercial properties. FSP operates in two business segments: real estate operations and investment banking/investment services. The majority of FSP's property portfolio is suburban office buildings, with select investments in certain central business district properties. FSP's subsidiary, FSP Investments LLC (member, FINRA and SIPC), is a real estate investment banking firm and a registered broker/dealer. 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

Forward-Looking Statements

Statements made in this press release regarding potential future acquisitions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current judgments and current knowledge of FSP's 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, including without limitation, economic conditions in the United States, disruptions in the debt markets, economic conditions in the markets in which FSP owns properties, changes in the demand by investors for investment in Sponsored REITs (as defined in our Annual Report on Form 10-K for the year ended December 31, 2009), risks of a lessening of demand for the types of real estate owned by FSP, changes in government regulations, 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, 2009 and subsequent periodic reports filed with the SEC. 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 Information

  • Contact:
    Investor Relations
    (877) 686-9496