FRANKLIN STREET PROPERTIES CORP /MA/ 10-Q

Item 3.  Quantitative and Qualitative Disclosures About Market Risk ​ Market Rate Risk ​ We are exposed to changes in interest rates primarily from our floating rate borrowing arrangements. As of June 30, 2024 and December 31, 2023, if market rates on our outstanding borrowings under the BofA Term Loan and the BofA Revolver, respectively, subject to a floating rate increased by 10% at maturity, or approximately 85 and 85 basis points, respectively, over the current variable rate, the increase in interest expense would decrease future earnings and cash flows by approximately $0.6 million and $0.8 million, respectively. The interest rate on the BofA Term Loan as of June 30, 2024 and the BofA Revolver as of December 31, 2023, was SOFR plus an adjustment of 0.11448% plus 300 basis points, or 8.45% and 8.47% per annum, respectively. There was $67.3 million drawn on the BofA Term Loan and $90 million drawn on the BofA Revolver as of June 30, 2024 and December 31, 2023, respectively. We do not believe that the interest rate risk on the BofA Term Loan is material as of June 30, 2024. ​ As of June 30, 2024, if market rates on our outstanding borrowings under the BMO Term Loan subject to a floating rate increased by 10% at maturity, or approximately 85 basis points over the current variable rate, the increase in interest expense would decrease future earnings and cash flows by approximately $0.7 million. The interest rate on the BMO Term Loan as of June 30, 2024 was SOFR plus an adjustment of 0.11448% plus 300 basis points, or 8.45% per annum. ​ The following table presents, as of June 30, 2024, our contractual variable rate borrowings under our BofA Term Loan, which matures on April 1, 2026, and under our BMO Term Loan Tranche B, which matures on April 1, 2026. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payment due by period ​ ​ (in thousands) ​ Total 2024 2025 ​ 2026 2027 2028 Thereafter BofA Term Loan ​ $ 67,333 ​ $ — ​ $ — ​ $ 67,333 ​ $ — ​ $ — ​ $ — ​ BMO Term Loan Tranche B ​ ​ 86,037 ​ ​ — ​ ​ — ​ ​ 86,037 ​ ​ — ​ ​ — ​ ​ — ​ Total ​ $ 153,370 ​ $ — ​ $ — ​ $ 153,370 ​ $ — ​ $ — ​ $ — ​ ​ ​