Franklin Street Properties Corp. (FSP) said Wednesday it has closed its earlier announced underwritten public offering of 17.25 million shares of its common stock, including 2.25 million shares purchased by the underwriters pursuant to the exercise in full of the underwriters' option to purchase additional shares.
The company received about $231.3 million in net proceeds from the offering after deducting the underwriting discount and other estimated offering expenses.
The company said it plans to use the net proceeds of the offering to fund a portion of its acquisition of two office buildings. These properties are currently under contract and the acquisitions are expected to close on or before July 1.
Pending closing of the acquisitions, the company intends to use the net proceeds from the offering to repay amounts outstanding under its revolving credit facility and/or for general corporate purposes.
BofA Merrill Lynch, Baird and BMO Capital Markets acted as joint book-running managers for the offering. PNC Capital Markets LLC, RBS, Capital One Southcoast, Piper Jaffray, TD Securities and BB&T Capital Markets acted as co-managers for the offering.
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