Spirit Realty Capital, Inc. Announces $800.0 Million Unsecured Term Loan Facility
August 22 2022 - 4:05PM
Business Wire
Spirit Realty Capital, Inc. (NYSE: SRC) (“Spirit” or the
“Company”), a net-lease real estate investment trust (“REIT”) that
invests in single-tenant, operationally essential real estate,
today announced that the Company has closed on a new unsecured term
loan facility for an aggregate amount of $800.0 million comprised
of a $300.0 million three-year tranche with a maturity date of
August 22, 2025 and a $500.0 million five-year tranche with a
maturity date of August 20, 2027. The term loan facility also
includes an accordion feature to increase the available term loans
in the aggregate amount of $200.0 million (such that the term loans
shall not exceed $1.0 billion), subject to obtaining lender
commitments and the satisfaction of certain customary conditions.
Borrowing rates under the new term loans are variable and subject
to a leverage-based pricing grid, currently calculated as one-month
Adjusted SOFR plus an 85 basis point spread based on the Company’s
credit rating. In anticipation of closing the term loan, Spirit
previously entered into interest swap agreements, effectively
fixing the interest rate at 3.45% for the 2027 maturity and 3.59%
for the 2025 maturity, resulting in a weighted average interest
rate of 3.50% for the total $800 million facility.
A total of twelve lenders participated in the term loan
facility, including JP Morgan Chase Bank, N.A. as a Joint
Bookrunner, Joint Lead Arranger and Administrative Agent. Capital
One, National Association, Mizuho Bank, Ltd., Regions Bank, TD Bank
N.A., Truist Bank, and The Huntington National Bank served as a
Joint Bookrunners and Joint Lead Arrangers. Fifth Third Bank,
National Association served as Joint Lead Arranger. Royal Bank of
Canada, The Bank of Nova Scotia, Bank of America, N.A., and Wells
Fargo Bank, N.A. served as Managing Agents.
“We are pleased to complete our previously announced $800.0
million term loan facility,” stated Michael Hughes, Chief Financial
Officer of Spirit Realty Capital. “As we execute on our growth
initiatives, we will continue evaluating various capital sources
available to us to strengthen our balance sheet and drive the
long-term success of our business. We would like to thank our
banking partners for their commitments and continued support.”
ABOUT SPIRIT REALTY
Spirit Realty Capital, Inc. (NYSE: SRC) is a premier net-lease
REIT that primarily invests in single-tenant, operationally
essential real estate assets, subject to long-term leases.
As of June 30, 2022, Spirit’s diverse portfolio consisted of
2,078 retail, industrial and other properties across 49 states,
which were leased to 342 tenants operating in 35 industries. As of
June 30, 2022, Spirit’s properties were approximately 99.8%
occupied. More information about Spirit Realty Capital can be found
on the investor relations page of the Company’s website at
www.spiritrealty.com.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended, the Private Securities Litigation Reform Act of 1995 and
other federal securities laws. These forward-looking statements can
be identified by the use of words and phrases such as
"preliminary," "expect," "plan," "will," "estimate," "project,"
"intend," "believe," "guidance," "approximately," "anticipate,"
"may," "should," "seek," or the negative of these words and phrases
or similar words or phrases that are predictions of or indicate
future events or trends and that do not relate to historical
matters but are meant to identify forward-looking statements. You
can also identify forward-looking statements by discussions of
strategy, plans or intentions of management. These forward-looking
statements are subject to known and unknown risks and uncertainties
that you should not rely on as predictions of future events.
Forward-looking statements depend on assumptions, data and/or
methods which may be incorrect or imprecise, and Spirit may not be
able to realize them. Spirit does not guarantee that the events
described will happen as described (or that they will happen at
all). The following risks and uncertainties, among others, could
cause actual results and future events to differ materially from
those set forth or contemplated in the forward-looking statements:
industry and economic conditions; volatility and uncertainty in the
financial markets, including potential fluctuations in the Consumer
Price Index; Spirit's success in implementing its business strategy
and its ability to identify, underwrite, finance, consummate,
integrate and manage diversifying acquisitions or investments; the
financial performance of Spirit's retail tenants and the demand for
retail space, particularly with respect to challenges being
experienced by general merchandise retailers; Spirit's ability to
diversify its tenant base; the nature and extent of future
competition; increases in Spirit's costs of borrowing as a result
of changes in interest rates and other factors; Spirit's ability to
access debt and equity capital markets; Spirit's ability to pay
down, refinance, restructure and/or extend its indebtedness as it
becomes due; Spirit's ability and willingness to renew its leases
upon expiration and to reposition its properties on the same or
better terms upon expiration in the event such properties are not
renewed by tenants or Spirit exercises its rights to replace
existing tenants upon default; the impact of any financial,
accounting, legal or regulatory issues or litigation that may
affect Spirit or its major tenants; Spirit's ability to manage its
expanded operations; Spirit's ability and willingness to maintain
its qualification as a REIT under the Internal Revenue Code of
1986, as amended; the impact on Spirit’s business and those of its
tenants from epidemics, pandemics or other outbreaks of illness,
disease or virus (such as the strain of coronavirus known as
COVID-19); and other risks inherent in the real estate business,
including tenant defaults, potential liability relating to
environmental matters, illiquidity of real estate investments and
potential damages from natural disasters discussed in Spirit's most
recent filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K and subsequent Quarterly
Reports on Form 10-Q. You are cautioned not to place undue reliance
on forward-looking statements which are based on information that
was available, and speak only, as of the date on which they were
made. While forward-looking statements reflect Spirit's good faith
beliefs, they are not guarantees of future performance. Spirit
expressly disclaims any responsibility to update or revise
forward-looking statements whether as a result of new information,
future events or otherwise, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220822005571/en/
INVESTOR CONTACT: Pierre Revol (972) 476-1403
InvestorRelations@spiritrealty.com
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