FSP · 10-Q · 2026Q1 · Full report
Outstanding Indebtedness
FRANKLIN STREET PROPERTIES CORP /MA/ · 2026-04-28 · Importance 96 · Surprise 100
On February 26, 2026, the Company entered into a secured credit facility totaling up to $320 million with an affiliate of TPG Credit consisting of $275 million initial term loans and up to $45 million of delayed draw term loans. The Delayed Draw Term Loans may be used, subject to lender approval, for tenant improvements, leasing commissions, building improvements and other lender-approved uses; the Term Loans are non-amortizing with an initial stated maturity of February 26, 2029 (one-year extension option subject to conditions). Proceeds of the Initial Term Loans were used to refinance and retire approximately $249 million of outstanding indebtedness (BMO Term Loan, BofA Term Loan and Senior Notes), and the refinancing generated a loss on extinguishment of debt of approximately $1.3 million in Q1 2026. Interest expense increased by roughly $1.1 million in the quarter, driven by a higher principal amount of debt outstanding.
Key facts
- On February 26, 2026, the Company closed a secured credit facility with an affiliate of TPG Credit for aggregate principal commitments of up to $320 million.
- On February 26, 2026, the Company used borrowings under the TPG facility to repay in full approximately $249 million aggregate principal amount of previously outstanding indebtedness.
- On February 26, 2026 the Company repaid in full two series of Senior Notes with an aggregate principal amount of approximately $122.9 million that would have matured on April 1, 2026.
- The Senior Notes repaid on February 26, 2026 consisted of Series A Senior Notes of approximately $71.3 million and Series B Senior Notes of approximately $51.6 million.
- On February 26, 2026 the Company repaid in full the BMO Term Loan with an aggregate principal amount of approximately $70.7 million which would have matured on April 1, 2026.
- On February 26, 2026 the Company repaid in full the BofA Term Loan with an aggregate principal amount of approximately $55.3 million which would have matured on April 1, 2026.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | positive | realized | +27.9% | On February 26, 2026, the Company used borrowings under the TPG facility to repay in full approximately $249 million aggregate principal… |