WAKEFIELD, Mass.--(BUSINESS WIRE)--Franklin Street Properties Corp. (NYSE MKT: FSP) today announced that it closed its previously announced underwritten public offering of 7,043,750 shares of its common stock, including 918,750 shares purchased by the underwriters pursuant to the exercise in full of the underwriters’ option to purchase additional shares. The Company received approximately $83.0 million in net proceeds from the offering after deducting the underwriting discount and other estimated offering expenses.
The Company intends to use the net proceeds of the offering to repay approximately $45.5 million under its senior unsecured revolving credit facility that was recently borrowed in anticipation of funding the acquisition of Pershing Park Plaza, an urban infill Class “A” office property located at 1420 Peachtree Street, NE, Atlanta, Georgia, and to fund estimated redevelopment costs of $15 million to $20 million at its property at 801 Marquette Avenue, Minneapolis, Minnesota.
Any proceeds of the offering not applied to the Pershing Park Plaza acquisition or the 801 Marquette redevelopment will be used to repay amounts outstanding under the Company’s senior unsecured revolving credit facility and/or for general corporate purposes, including funding future acquisitions and investments.
Baird and BMO Capital Markets acted as active bookrunners, Stifel acted as passive bookrunner and Wunderlich acted as senior co-manager for the offering. BTIG, Capital One Securities, PNC Capital Markets LLC and TD Securities acted as co-managers for the offering.
About Franklin Street Properties
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on investing in institutional-quality office properties in the U.S. FSP’s strategy is to invest in select urban infill and central business district (CBD) properties, with primary emphasis on our top five markets of Atlanta, Dallas, Denver, Houston, and Minneapolis. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.
