Franklin Street enters rate swap to fix Libor on $100 million of loans

By Wendy Van Sickle

Columbus, Ohio, March 11– Franklin Street Properties Corp. entered into an interest rate swap transaction to fix Libor on a $100 million portion of its $150 million term loan with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The swap transaction, entered on March 7, fixes Libor at 244 basis points through the term loan’s maturity on Nov. 30, 2021. There is a spread above that rate, which is currently 125 bps and depends on the company’s credit rating. The rate swap lowers the company’s total current interest rate to 369 bps from 381 bps.

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

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