Market Overview

Franklin Street Properties Corp. Announces Recast of Existing $150 Million Unsecured Term Loan

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Franklin Street Properties Corp. (the "Company", "FSP", "our" or "we")
(NYSE:FSP) announced today that it recast its existing $150
million unsecured term loan (as amended, the "JPM Term Loan") with
JPMorgan Chase Bank, N.A. ("JPMorgan") continuing to serve as
Administrative Agent. A summary of key terms is below:

  • Principal amount outstanding of $150 million remained unchanged.
  • Maturity date was extended from November 30, 2018 to November 30,
    2021, plus two optional six-month extensions.
  • Depending on the Company's credit rating, the margin over the
    Eurodollar Rate decreased from a range of 110-185 basis points to a
    range of 85-165 basis points. In addition, depending on the Company's
    credit rating, the margin over the base rate decreased from a range of
    10-85 basis points to a range of 0-65 basis points. Based on the
    Company's credit rating of Baa3 with Moody's as of August 2, 2018, our
    margin over the Eurodollar Rate decreased from 135 basis points to 125
    basis points.

FSP was represented by Wilmer Cutler Pickering Hale and Dorr LLP and
JPMorgan was represented by Goulston & Storrs PC. Participating banks
include:

       

Name of Institution

Title

 
JPMorgan Chase Bank, N.A.

Administrative Agent, Joint Bookrunner and Joint Lead Arranger

 

Citizens Bank, N.A.

Joint Bookrunner, Joint Lead Arranger and Syndication Agent

 

PNC Bank, National Association

Joint Bookrunner, Joint Lead Arranger and Documentation Agent

 

U.S. Bank National Association

Joint Bookrunner, Joint Lead Arranger and Documentation Agent

 

BBVA Compass Lender
 

George J. Carter, Chairman and Chief Executive Officer of FSP, said, "We
believe that the recast of our term loan with JPMorgan helps to better
align the risk/reward characteristics of our capital structure with the
long-term, value-add growth opportunities that we believe exist in our
now predominantly urban and infill office property portfolio. We
appreciate the continued confidence shown in FSP by each of the
participating banks."

This press release, along with other news about FSP, is available on the
Internet at www.fspreit.com.
We routinely post information that may be important to investors in the
Investor Relations section of our website. We encourage investors to
consult that section of our website regularly for important information
about us and, if they are interested in automatically receiving news and
information as soon as it is posted, to sign up for E-mail Alerts.

About Franklin Street Properties Corp.

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 five
core 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. To learn
more about FSP please visit our website at www.fspreit.com.

Forward-Looking Statements

Statements made in this press release that state FSP's or management's
intentions, beliefs, expectations, or predictions for the future may be
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. This press release may also contain
forward-looking statements based on current judgments and current
knowledge of management, which are subject to certain risks, trends and
uncertainties that could cause actual results to differ materially from
those indicated in such forward-looking statements. Accordingly, readers
are cautioned not to place undue reliance on forward-looking statements.
Investors are cautioned that our forward-looking statements involve
risks and uncertainty, including without limitation, economic conditions
in the United States, disruptions in the debt markets, economic
conditions in the markets in which we own properties, risks of a
lessening of demand for the types of real estate owned by us, changes in
government regulations and regulatory uncertainty, uncertainty about
governmental fiscal policy, geopolitical events and expenditures that
cannot be anticipated such as utility rate and usage increases,
unanticipated repairs, additional staffing, insurance increases and real
estate tax valuation reassessments. See the "Risk Factors" set forth in
Part I, Item 1A of our Annual Report on Form 10-K for the year ended
December 31, 2017, as the same may be updated from time to time in
subsequent filings with the United States Securities and Exchange
Commission. Although we believe the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future
results, levels of activity, acquisitions, dispositions, performance or
achievements. We will not update any of the forward-looking statements
after the date of this press release to conform them to actual results
or to changes in our expectations that occur after such date, other than
as required by law.

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