BETHESDA, Md., March 28, 2016 /PRNewswire/ -- First Potomac Realty Trust (NYSE: FPO) (the "Company"), a leading owner of office and business park properties in the greater Washington D.C. region, today announced that it intends to redeem 3,600,000 shares, representing approximately 86%, of its 4,200,000 outstanding shares of 7.750% Series A Cumulative Redeemable Perpetual Preferred Shares (the "Series A Preferred Shares") on April 27, 2016 (the "Redemption Date"). This redemption is consistent with the Company's previously announced plan to dispose of $350 million of assets and utilize the proceeds to redeem outstanding preferred shares and repay outstanding indebtedness. The Series A Preferred Shares will be redeemed at a redemption price of $25.00 per share, plus the amount equal to all accrued and unpaid dividends on each Series A Preferred Share to be redeemed from February 16, 2016 up to, but not including, the Redemption Date.
Dividends on the Series A Preferred Shares that are to be redeemed will cease to accrue on the Redemption Date. Upon redemption, the redeemed Series A Preferred Shares will no longer be outstanding, and all rights of the holders of such shares will terminate, except the right of the holders to receive the cash payable upon such redemption, without interest.
All Series A Preferred Shares are held in book-entry form through the Depository Trust Company ("DTC") and shares to be redeemed will be selected by lot in accordance with the procedures of DTC. Payment to DTC for the Series A Preferred Shares will be made by American Stock Transfer & Trust Company, LLC as redemption agent.
The address for the redemption agent is as follows:
American Stock Transfer & Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219
Attn: Reorganization Dept.
About First Potomac Realty Trust
First Potomac Realty Trust is a self-administered, self-managed real estate investment trust that focuses on owning, operating, developing and redeveloping office and business park properties in the greater Washington, D.C. region. FPO common shares (NYSE: FPO) and preferred shares (NYSE: FPO-PA) are publicly traded on the New York Stock Exchange. As of December 31, 2015, our consolidated portfolio totaled 7.5 million square feet. Based on annualized cash basis rent, our portfolio consists of 64% office properties and 36% business park and industrial properties. A key element of First Potomac's overarching strategy is its dedication to sustainability. Over one million square feet of First Potomac property is LEED Certified and approximately half of the portfolio's multi-story office square footage is LEED or Energy Star Certified.
The forward-looking statements contained in this press release, including statements regarding our plans and expectations with respect to the redemption of the Series A Preferred Shares, are subject to various risks and uncertainties. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that the Company's expectations will be achieved. Certain factors that could cause actual results to differ materially from the Company's expectations include changes in general or regional economic conditions; the Company's ability to timely lease or re-lease space at current or anticipated rents; changes in interest rates; changes in operating costs; the Company's ability to complete acquisitions and dispositions on attractive terms, or at all; the Company's ability to manage its current debt levels and repay or refinance its indebtedness upon maturity or other required payment dates; the Company's ability to maintain financial covenant compliance under its debt agreements; the Company's ability to maintain effective internal controls over financial reporting and disclosure controls and procedures; any impact of the informal inquiry initiated by the Securities and Exchange Commission (the "SEC"); the Company's ability to obtain debt and/or financing on attractive terms, or at all; and other risks detailed in the Company's Annual Report on Form 10-K and described from time to time in our filings with the SEC. Many of these factors are beyond the Company's ability to control or predict. Forward-looking statements are not guarantees of performance. For forward-looking statements herein, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Jaime N. Marcus
Director, Investor Relations
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SOURCE First Potomac Realty Trust