FCPT Announces Upsizing and Extension of Unsecured Credit Facility
October 25 2022 - 5:08PM
Business Wire
Four Corners Property Trust (NYSE:FCPT), a real estate
investment trust primarily engaged in the ownership and acquisition
of high-quality, net-leased restaurant and retail properties
(“FCPT” or the “Company”), announced today that the Company entered
into a Third Amended and Restated Revolving Credit and Term Loan
Agreement with a group of existing and new lenders. The amendment
increases the overall size of the facility from $650 million to
$680 million, and repaid $150 million of loans maturing in 2023 and
2024 with a new $90 million term loan maturing in 2027 (the “2027
Term Loan”) and a new $90 million term loan maturing in 2028 (the
“2028 Term Loan”). Pricing and maturities for the $250 million
revolving facility maturing in 2025, the $150 million term loan
maturing in 2025 and the $100 million loan maturing in 2026 were
not impacted by the extension. The $430 million of term loans will
be fully drawn at close and provide $30 million of incremental
proceeds to fund investments and other general corporate
purposes.
“We are very appreciative of the support of our existing and new
bank partners and their commitment to our growth. The increased
proceeds, improved credit spread pricing on the new tranches and
extended maturities reflect the quality of our portfolio, our
disciplined approach to investing, and our continued commitment to
a strong, investment-grade balance sheet,” said Gerry Morgan, Chief
Financial Officer of FCPT.
The amendment also converts the facility from LIBOR to
SOFR-based borrowings. Based on FCPT’s current investment grade
ratings of BBB/Baa3 (Fitch/Moody’s), term loans bear interest at an
adjusted SOFR rate plus a credit spread of 95 to 100 basis points
depending on the term loan tranche.
FCPT has entered into interest rate swaps to hedge portions of
the term loans as shown below:
($ in millions) Amount Amount % % Hedged Unhedged Year Hedged
Unhedged Hedged Unhedged rate 1 rate 2
2023
$ 325
$ 105
76%
24%
2.79%
SOFR+10 bps+97.9 bps
2024
$ 275
$ 155
64%
36%
2.47%
SOFR+10 bps+97.9 bps
2025
$ 225
$ 205
52%
48%
1.92%
SOFR+10 bps+97.9 bps
2026
$ 225
$ 205
52%
48%
2.68%
SOFR+10 bps+97.9 bps
2027
$ 225
$ 205
52%
48%
2.68%
SOFR+10 bps+97.9 bps
2028
$ 125
$ 305
29%
71%
2.83%
SOFR+10 bps+97.9 bps Note 1: The hedged rate is an all-in rate
including credit spreads Note 2: The unhedged rate is based on SOFR
and a 10-basis point index adjustment plus the credit spread. Based
on FCPT's current investment grade ratings, the credit spread is 95
basis points on $180 million of the term loans, and 100 basis
points on $250 million of term loans which averages 97.9 basis
points
Based on the current investment grade ratings, borrowings under
the revolving facility of $250 million bear interest at an adjusted
SOFR rate plus a combined facility fee and credit spread of 105
basis points.
JPMorgan Chase Bank, N.A. and BofA Securities, Inc. acted as
Joint Bookrunners and Joint Lead Arrangers on the new 2027 Term
Loan and 2028 Term Loan. Other Joint Lead Arrangers were The
Huntington National Bank, Mizuho Bank LTD, Truist Bank, and Fifth
Third Bank, National Association. Additional lenders include
Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., and First
Horizon Bank.
About FCPT
FCPT, headquartered in Mill Valley, CA, is a real estate
investment trust primarily engaged in the ownership, acquisition
and leasing of restaurant and retail properties. The Company seeks
to grow its portfolio by acquiring additional real estate to lease,
on a net basis, for use in the restaurant and retail industries.
Additional information about FCPT can be found on the website at
www.fcpt.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements include all statements that are not historical
statements of fact and those regarding FCPT’s intent, belief or
expectations, including, but not limited to, statements regarding:
the Company’s operating and financial performance, the funding of
the 2027 Term Loan and 2028 Term Loan and their intended use of
proceeds. Words such as “anticipate(s),” “expect(s),” “intend(s),”
“plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,”
“seek(s)” and similar expressions, or the negative of these terms,
are intended to identify such forward-looking statements.
Forward-looking statements speak only as of the date on which such
statements are made and, except in the normal course of FCPT’s
public disclosure obligations, FCPT expressly disclaims any
obligation to publicly release any updates or revisions to any
forward-looking statements to reflect any change in FCPT’s
expectations or any change in events, conditions or circumstances
on which any statement is based. Forward-looking statements are
based on management’s current expectations and beliefs and FCPT can
give no assurance that its expectations or the events described
will occur as described. For a further discussion of these and
other factors that could cause FCPT’s future results to differ
materially from any forward-looking statements, see the section
entitled “Risk Factors” in FCPT’s most recent annual report on Form
10-K, and other risks described in documents subsequently filed by
FCPT from time to time with the Securities and Exchange
Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20221025006120/en/
Four Corners Property Trust: Bill Lenehan, 415-965-8031 CEO
Gerry Morgan, 415-965-8032 CFO
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