Franklin Street increases revolver to $600 million, extends to 2022

By Wendy Van Sickle

Columbus, Ohio, Oct. 24 – Franklin Street Properties Corp. entered a second amendment on Oct. 18 to recast its second amended and restated credit agreement dated Oct. 29, 2014 with Bank of America, NA as administrative agent to increase the revolving line of credit by $100 million to $600 million and extend the revolver and term loan maturity, among other changes, according to an 8-K filing with the Securities and Exchange Commission.

The revolver now matures on Jan. 12, 2022, with two six-month extension options, pushed back from Oct. 29, 2018, and the term loan now matures on Jan. 12, 2023, extended from Sept. 27, 2021.

Also, the interest rate margin was decreased to Libor plus 82.5 basis points to 155 bps for the revolver and Libor plus 90 bps to 175 bps for the term loan, depending on the company’s credit ratings.

The accordion feature was increased to $500 million from $350 million, the minimum tangible net worth threshold was reset, and some leverage ratios were increased for three fiscal quarters after a significant acquisition, rather than two fiscal quarters previously.

The company also amended its amended and restated credit agreement dated Oct. 29, 2014 with Bank of Montreal as administrative agent and its credit agreement dated Nov. 30, 2016, with JPMorgan Chase Bank, NA, as administrative agent to conform the financial covenants to those under the updated Bank of America credit agreement.

Based in Wakefield, Mass., Franklin is focused on investments in commercial properties.

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