In a notable development, First Potomac Realty Trust FPO has replaced its existing credit facility and unsecured term loans with new ones. In sync with the Bethesda, MD-based real estate investments trust’s (“REIT”) business objectives, these new arrangements will likely lend additional flexibility to its balance sheet.
The revised $300-million revolving credit facility, with a 4-year term, includes an extension option for up to one additional year. On the other hand, the new $300-million unsecured term loan agreement comprises three $100-million tranches (Tranche A, Tranche B and Tranche C). The 3 tranches have term periods of 5 years, 5 and a half year, and 7 years, respectively.
First Potomac Realty is engaged in acquiring, operating and developing industrial and flex properties in Maryland, Virginia and the Washington, D.C. metropolitan area. The new credit arrangements better align the company’s borrowing ability with its goals. These provisions not only add to the company’s financial strength to help it better execute the redemption of its Series A Preferred Shares, but also lower its borrowing costs.
First Potomac Realty currently has a Zacks Rank #3 (Hold).
Investors interested in the REIT space may consider stocks like Arbor Realty Trust Inc. ABR, Getty Realty Corp. GTY and Mack-Cali Realty Corp. CLI All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment