First Potomac Realty to issue shares for $13 million 4% exchangeables

By Angela McDaniels

Tacoma, Wash., June 8 - First Potomac Realty Trust agreed to issue 880,648 shares of common stock in exchange for approximately $13 million principal amount of 4% exchangeable senior notes due 2011 issued by its operating partnership, First Potomac Realty Investment LP, according to an 8-K filing with the Securities and Exchange Commission.

The exchange was expected to be completed on June 7 under an agreement reached on June 1 with two noteholders.

In connection with this repurchase, the company will recognize a gain on the extinguishment of debt of approximately $300,000.

The transaction will leave approximately $37.5 million principal amount of notes outstanding.

First Potomac is a Bethesda, Md.-based real estate investment trust that focuses on industrial properties and business parks in the Washington, D.C., metropolitan area. Its largest tenant is the U.S. government.

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