Franklin Street splits $220 million loan; tranches due 2021, 2024

By Wendy Van Sickle

Columbus, Ohio, Sept. 27 – Franklin Street Properties Corp. recast its existing $220 million unsecured term loan with Bank of Montreal, maintaining the total principal amount but splitting it into two tranches, according to a Thursday press release.

Specifically, $55 million was allocated to a tranche A term loan and $165 million to a tranche B term loan.

The maturity date was extended to Nov. 30, 2021 from Aug. 26, 2020 for the tranche A term loan and to Jan. 31, 2024 for the tranche B term loan.

Depending on the company’s credit rating, the margin over Libor decreased to a range of 85 basis points to 165 bps from a range of 105 bps to 215 bps prior to the amendment.

Based on Franklin Street’s credit rating of Baa3 with Moody’s Investors Service as of Thursday, its margin over Libor decreased to 125 bps from 165 bps.

Bank of Montreal, Capital One Bank, NA, Regions Capital Markets and PNC Bank, NA are the joint lead arrangers and joint bookrunners. Bank of Montreal is the administrative agent. PNC is the syndication agent. Regions and Capital One are the co-documentation agent.

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

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