Franklin Street restates term loan to trim pricing, extend maturity

By Marisa Wong

Morgantown, W.Va., Aug. 2 – Franklin Street Properties Corp. amended and restated its credit agreement dated Nov. 30, 2016 to lower pricing and extend the termination date, according to an 8-K filing with the Securities and Exchange Commission.

An unsecured term loan totaling $150 million made under the original credit agreement remains advanced and outstanding under the restated credit agreement dated Aug. 2.

The termination date was extended to Nov. 30, 2021 from Nov. 30, 2018. The maturity date may be extended by two additional six-month periods, or until Nov. 30, 2022.

The term loan now bears interest at Libor plus 125 basis points, based on the company’s current credit rating. The margin generally ranges from 85 bps to 165 bps, depending on ratings.

The credit agreement contains financial covenants that require the company to maintain a minimum tangible net worth, a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed-charge coverage ratio, a maximum unencumbered leverage ratio, a minimum unsecured interest coverage ratio and a maximum ratio of certain investments to total assets.

JPMorgan Chase Bank, NA, Citizens Bank, NA, PNC Capital Markets LLC and U.S. Bank NA are joint bookrunners and joint lead arrangers for the restated facility, with JPMorgan Chase Bank as administrative agent, Citizens Bank, NA as syndication agent and PNC Bank, NA and U.S. Bank as documentation agents.

Based in Wakefield, Mass., Franklin Street is a real estate investment trust focused on investments in commercial properties.

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