Search
 

Franklin Street Takes $220M Loan

WAKEFIELD, MA-The developer will use the proceeds from the debt to fund its second acquisition in Denver.

By Rayna Katz | Updated on August 27, 2013

WAKEFIELD, MA-Looking to fund an acquisition in Denver—which is expected to close on Wednesday—Franklin Street Properties Corp. has closed an unsecured term loan with a group of banks. The total borrowed under the term loan is $220 million.

The term loan has a term of seven years that matures on August 26, 2020. It includes an accordion feature that allows for up to $50 million of additional borrowing capacity subject to receipt of lender commitments and satisfaction of certain customary conditions. The term loan bears interest at either a LIBOR based rate plus 145 to 220 basis points, depending on the company’s total leverage ratio for the applicable period (LIBOR plus 165 basis points at August 26, 2013); or a rate equal to the bank’s base rate plus 45 to 120 basis points, depending on the company’s total leverage ratio for the applicable period (the bank’s base rate plus 65 basis points at August 26, 2013). Although the interest rate on the term loan is variable, the company elected to fix the base LIBOR interest rate at 2.32% per year for seven years by entering into an interest rate swap. Based upon the company’s total leverage ratio, as of August 26th, that puts the effective interest rate on the loan at 3.97% per year.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.