The refinancing is a package consisting of a new secured term loan provided by KeyBank and supplemented by what is left on the company's unsecured revolving credit facility. First Potomac did not return a call from GlobeSt.com in time for deadline.

The term loan has an initial balance of $35 million with the option to increase the loan amount by an additional $35 million. The interest rate is 225 basis points over LIBOR, with a maturity date of September 2010, and a one-year extension option. Besides lowering First Potomac's cost of debt and increasing its borrowing capacity, the refinancing facilitates the possible sale of some of the company's suburban Maryland assets, Jeff Harris, First Potomac's director of finance, says in a prepared statement.

First Potomac owns seven properties in the Baltimore area and close to 20 in the suburban DC area. Its larger holdings include Glen Dale Business Center in Glen Dale, MD, a 315,191-sf flex/industrial building and Gateway 270 West, a 254,900-sf, six building flex complex in Clarksburg, MD.