FSP · 10-Q · 2026Q1 · Full report

Loss on Debt Extinguishment

FRANKLIN STREET PROPERTIES CORP /MA/ · 2026-04-28 · Importance 65 · Surprise 82

During the three months ended March 31, 2026 the Company recorded a loss on extinguishment of debt of approximately $1.3 million, compared to about $2,000 in the prior-year period. The loss relates to debt deal costs incurred from the February 2026 refinancing and unamortized deferred financing costs on debt repayments. These extinguishment costs were recorded in connection with retiring prior BMO, BofA and Senior Note indebtedness and replacing them with the TPG Term Loans. The extinguishment reduced reported net income but is a non-recurring financing charge associated with the strategic refinancing executed on February 26, 2026.

Key facts

• Loss on extinguishment of debt was approximately $1,267 thousand for the three months ended March 31, 2026 and $2 thousand for the three months ended March 31, 2025.
• The losses on extinguishment of debt in the three months ended March 31, 2026 of approximately $1.3 million were related to debt deal costs incurred from refinanced debt in February 2026 and unamortized deferred financing costs.
• The Company recorded an impairment loss of $13.3 million related to the Monument Circle Indianapolis property during the three months ended March 31, 2025.

Impact estimates