SOURCE: Franklin Street Properties Corp.

September 17, 2009 20:46 ET

Franklin Street Properties Corp. Announces Pricing of Public Offering of Common Stock; Size of Offering Increased to 8,000,000 Shares

WAKEFIELD, MA--(Marketwire - September 17, 2009) - Franklin Street Properties Corp. ("FSP", "it", "our" or "we") (NYSE Amex: FSP), an investment firm specializing in real estate, announced today that it has priced an underwritten public offering of 8,000,000 shares of its common stock at a price to the public of $13.00 per share. The offering was increased from a previously announced offering size of 6,000,000 shares. FSP has granted the underwriters a 30-day option to purchase up to an additional 1,200,000 shares to cover over-allotments, if any. The offering is expected to close on September 23, 2009, subject to customary closing conditions. Robert W. Baird & Co. Incorporated acted as sole book-running manager for the offering.

We estimate that the net proceeds from this offering, after deducting underwriting discounts and commissions, and estimated offering expenses, will be approximately $99,680,000 (or approximately $114,812,000 if the underwriters' over-allotment option is exercised in full). The net proceeds of this offering will be used for the repayment of outstanding indebtedness incurred by us under our unsecured revolving credit line for the recent acquisition of properties, including an aggregate of approximately $51.6 million drawn down in June 2009 for the acquisition of properties in Eden Prairie, Minnesota and Chantilly, Virginia. We expect to use additional proceeds for potential real estate acquisitions, including a portion of the purchase price for a planned acquisition in Falls Church, Virginia, and other general corporate purposes.

All of the shares of common stock will be issued by FSP and will be issued under our currently effective shelf registration statement filed with the United States Securities and Exchange Commission (the "SEC").

This press release is not an offer to sell, nor a solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. A copy of the prospectus relating to these securities may be obtained, when available, from Robert W. Baird & Co. Incorporated, Attn: Syndicate Department, 777 E. Wisconsin Avenue, Milwaukee, WI 53202, or by calling (414) 765-3632.

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 www.franklinstreetproperties.com.

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 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 we own 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, 2008), risks of a lessening of demand for the types of real estate owned by us, 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, 2008, as the same may be updated from time to time in subsequent filings 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:
    John Demeritt
    877-686-9496