FranklinStreet Properties Corp.'s public offering of 6,125,000 commonshares priced at$12.35 apiece.
Net proceeds, including underwriting discounts and commissionsand estimated offering expenses, are estimated to be about $72.1 million. Thefigure could total $83.0 million if the underwriters exercise their option tobuy up to an additional 918,750 shares of common stock.
Net proceeds are expected to be used to repay roughly $45.5million under the company's senior unsecured revolving credit facility. Thecompany borrowed that amount recently in connection with its of Pershing Park Plaza in Atlanta. Netproceeds will also be utilized to fund estimated redevelopment costs of $15million to $20 million at 801 Marquette Ave. South in Minneapolis. According to FranklinStreet, the offering is not subject to the redevelopment of the property.
The offering is expected to close Aug. 16.
Baird and BMO Capital Markets are acting as active bookrunners, Stifel is the passive book runner and Wunderlich is senior co-managerfor the offering. BTIG, Capital One Securities, PNC Capital Markets LLC and TDSecurities are serving as co-managers.