Franklin Street (FSP) Prices 6.13M Share Common Stock Offering for Proceeds of ~$72M
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Franklin Street Properties Corp. (NYSE: FSP) announced the pricing of its previously-announced public offering of 6,125,000 shares of its common stock at a price of $12.35 per share, for net proceeds of approximately $72.1 million after underwriting discounts and commissions and estimated offering expenses (or approximately $83.0 million if the underwriters' option to purchase additional shares is exercised in full). FSP has granted the underwriters the option to purchase up to an additional 918,750 shares of common stock. The offering is expected to close on August 16, 2016.
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. The offering is not contingent upon the redevelopment of 801 Marquette.
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 are acting as active bookrunners, Stifel is acting as passive bookrunner and Wunderlich is acting as senior co-manager for the offering. BTIG, Capital One Securities, PNC Capital Markets LLC and TD Securities are acting as co-managers for the offering.
This offering will be made pursuant to a prospectus supplement to the Company’s prospectus, dated January 12, 2015, filed as part of the Company’s effective shelf registration statement relating to these securities. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the shares described herein or any other securities, nor shall there be any sale of these shares in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or other jurisdiction. The offering may be made only by means of a prospectus supplement and the related prospectus.
A copy of the preliminary prospectus supplement and the final prospectus supplement (when available) relating to the shares can be obtained by contacting the underwriters as follows: Robert W. Baird & Co. Incorporated, 777 E. Wisconsin Avenue, Milwaukee, WI 53202, Attn: Syndicate Department or by telephone at (800) 792-2473 or by email at firstname.lastname@example.org; BMO Capital Markets, 3 Times Square, 25th Floor, New York, NY 10036, Attn: Syndicate Desk or by telephone at (800) 414-3627; Stifel, Nicolaus & Company, Incorporated, Attn: Syndicate Department, One South Street, 15th Floor, Baltimore, MD 21202, or by telephone at (855) 300‐7136 or by email to SyndProspectus@stifel.com; or Wunderlich Securities, Inc., Attn: Equity Syndicate, 6000 Poplar Avenue, Suite 150, Memphis, TN 38119, or by email at email@example.com. You may also obtain these documents by visiting the EDGAR database on the SEC’s web site at www.sec.gov.
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Create E-mail Alert Related CategoriesCorporate News, Equity Offerings
Related EntitiesStifel, Robert W Baird, BMO Capital, Wunderlich Securities, Definitive Agreement, Equity Offerings, BTIG
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