Franklin Street shares surge 10.18% premarket after closing $320M credit facility to refinance debt and reduce near-term uncertainty.

Franklin Street Properties Corp. surged 10.18% in premarket trading following the announcement of a $320 million secured credit facility with TPG Credit, refinancing all $248.9 million of outstanding debt and providing $45 million in delayed draw loans for property improvements. The refinancing reduces near-term liquidity risks, enhances financial flexibility, and supports strategic initiatives to boost shareholder value, as highlighted by CEO George Carter. The transaction, structured with a 9.0% coupon and 4.0% exit fee, aligns with the company’s focus on navigating a challenging office market environment. The move follows ongoing strategic reviews and addresses prior concerns over debt maturities, directly correlating with the sharp premarket rally.