SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Filed pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 7, 1999
BRANDYWINE REALTY TRUST
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(Exact name of registrant as specified in its charter)
MARYLAND 1-9106 23-2413352
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) file number) Identification Number)
14 Campus Boulevard, Newtown Square, Pennsylvania 19073
(Address of principal executive offices)
(610) 325-5600
(Registrant's telephone number, including area code)
Item 5. Other Events
On January 7, 1999, Brandywine Operating Partnership, L.P. (the
"Operating Partnership"), in which Brandywine Realty Trust is the sole general
partner, closed on a mortgage loan financing (the "Financing"). Under the
Financing, the Operating Partnership borrowed an aggregate of $119.0 million
from Massachusetts Mutual Life Insurance Company and Connecticut General Life
Insurance Company of America. The Financing bears interest at 7.18% and matures
on February 1, 2004. The Financing comprises two loans, one in the amount of
$56.0 million secured by the Operating Partnership's properties located in
Wilmington, Delaware known as One Christina and Three Christina, and another
loan in the amount of $63.0 million secured by the Operating Partnership's
properties located in Saddle Brook, New Jersey known as Park 80 West I and II
(Saddle Brook) and by certain of its properties located in Mt. Laurel, New
Jersey known as 10000 and 15000 Midlantic Drive. The Financing is non-recourse
to the Operating Partnership, except in certain limited circumstances. Eighty
million dollars of the proceeds of the Financing has been used to repay
principal of the Company's bridge loan from NationsBank, reducing the
outstanding amount thereof to $70.0 million. The remainder of the bridge loan is
due March 31, 1999. The documentation executed to effect the Financing contains
certain covenants requiring the Operating Partnership to operate the properties
which secure the Financing within certain parameters set forth in such
documents, requiring the Operating Partnership to obtain approval of the lenders
for certain leases and lease modifications relating to those properties, to
maintain insurance for those properties at specified levels and to pay taxes and
other impositions with respect to those properties on a monthly basis into an
escrow account held by lenders. The Company believes these covenants to be
customary for secured, non-recourse real estate financings such as the Financing
and to be reasonable in the case of the Financing.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BRANDYWINE REALTY TRUST
Date: January 20,1999 By: /s/ Gerard H. Sweeney
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Title: President and Chief
Executive Officer