Wakefield’s Franklin Street Properties Corp. (FSP), an investment firm specializing in real estate, has closed a new $500 credit facility with a group of banks.
The credit facility, or 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 existing $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 Feb. 22, 2014, and also has a one-year extension option.
"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," said George Carter, president and chief executive officer of FSP. "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 is serving as administrative agent for the new revolver. FSP was represented by Wilmer Cutler Pickering Hale and Dorr LLP and Bank of America was represented by Goulston & Storrs PC. Participating banks include:
- 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 Co. Lender
