BETHESDA, Md., Dec. 7, 2015 /PRNewswire/ -- First Potomac Realty Trust (NYSE: FPO), a leading owner and operator of office and business park properties in the greater Washington D.C. region, has executed a recast of its unsecured revolving credit facility and unsecured term loans, which replace the Company's existing credit facility and unsecured term loans.
The new amended, restated and consolidated credit agreement is comprised of a $300 million revolving credit facility with a 4-year term, which can be extended at the Company's option for up to an additional year, and a $300 million unsecured term loan agreement. The term loan agreement consists of three $100 million tranches (Tranche A, Tranche B and Tranche C), with terms of 5 years, 5½ years, and 7 years, respectively.
Andy Blocher, Executive Vice President and Chief Financial Officer of First Potomac Realty Trust, said, "The new consolidated credit agreement better aligns our borrowing ability with our business objectives, gives us additional flexibility as it relates to dispositions, allows for the redemption of our Series A Preferred Shares, and also reduces the capitalization rates used to calculate Gross Asset Value for our financial covenants. We were also able to extend the term and reduce our borrowing costs."
KeyBanc Capital Markets, Wells Fargo Securities, LLC, and PNC Capital Markets, LLC served as Joint Lead Arrangers and Joint Lead Book Runners for the revolving credit facility. KeyBanc Capital Markets and Wells Fargo Securities, LLC served as Joint Lead Arrangers and Joint Lead Book Runners for Tranche A of the Term Loan, KeyBanc Capital Markets, Suntrust Robinson Humphrey, Inc. and Bank of Montreal served as Joint Lead Arrangers and Joint Lead Book Runners for Tranche B of the Term Loan, and KeyBanc Capital Markets, U.S. Bank National Association, and Capital One, N.A. served as Joint Lead Arrangers and Joint Lead Book Runners for Tranche C of the Term Loan, with KeyBank National Association serving as Administrative Agent, Issuing Bank and Swingline Lender. Other lenders include Royal Bank of Canada and Raymond James Bank, N.A.
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 September 30, 2015, our consolidated portfolio totaled 7.8 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.
Forward-Looking Statements The forward-looking statements contained in this press release are subject to various risks and uncertainties. Although we believe the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that our expectations will be achieved. Certain factors that could cause actual results to differ materially from our expectations include changes in general or regional economic conditions; our ability to timely lease or re-lease space at current or anticipated rents; changes in interest rates; changes in operating costs; our ability to complete acquisitions and dispositions on attractive terms, or at all; our ability to manage our current debt levels and repay or refinance our indebtedness upon maturity or other required payment dates; our ability to maintain financial covenant compliance under our debt agreements; our ability to maintain effective internal controls over financial reporting and disclosure controls and procedures; any impact of the informal inquiry initiated by the SEC; our ability to obtain debt and/or financing on attractive terms, or at all; changes in the assumptions underlying our earnings and Core FFO guidance and other risks detailed in our 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, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Company Contact: Jaime N. Marcus Director, Investor Relations (240) 223-2735 firstname.lastname@example.org
SOURCE First Potomac Realty Trust