Franklin Street Properties Corp., a Wakefield-based real estate investment trust, has closed a $220 million unsecured term loan with a group of banks.

Bank of Montreal is serving as administrative agent for the term loan. Participating banks include PNC Bank, Capital One and RBS Citizens.

The loan allows for up to $50 million of additional borrowing capacity subject to receipt of lender commitments and satisfaction of certain customary conditions. It has a term of seven years that matures on Aug. 26, 2020 and bears interest at either a LIBOR based rate plus 145 to 220 basis points, depending on the company’s total leverage ratio for the applicable period or a rate equal to the bank’s base rate plus 45 to 120 basis points, depending on the company’s total leverage ratio for the applicable period.

The company elected to fix the base LIBOR interest rate at 2.32 percent per annum for seven years by entering into an interest rate swap. Based on the company’s total leverage ratio, as of Aug. 26, the effective interest rate on the term loan is 3.97 percent per annum.