FCPT Announces New $85 Million Term Loan Under Existing Credit Facility
March 14 2024 - 3:05PM
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 an Incremental Amendment to the Third Amended and Restated
Revolving Credit and Term Loan Agreement with a group of existing
lenders (the “Credit Agreement”). The Company utilized the
accordion feature of the Credit Agreement to enter into a new $85
million term loan (the “Term Loan”). The Term Loan matures in March
2027 with one twelve-month extension exercisable at the Company’s
option, subject to certain conditions. The Term Loan will be fully
drawn at close and will be used to pay down the $50 million of
private notes maturing in June 2024 as well as for acquisitions and
other general corporate purposes.
Bill Lenehan, Chief Executive Officer of FCPT, commented “We are
very appreciative of the support of our existing bank partners.
This Term Loan allows us to pay down our only near-term debt
maturity at a favorable borrowing cost and provides additional
capital for acquisitions. This transaction highlights FCPT's
commitment to a strong, investment grade-balance sheet, and
positions the Company well with our next maturity not scheduled
until November 2025.”
In conjunction with the Term Loan, the Company entered into $85
million of interest rate swaps to fix the reference rate at 3.94%
through maturity. Including a credit margin of 0.95% determined
under the Credit Agreement by FCPT’s current investment grade
ratings of BBB/Baa3 (Fitch/Moody’s), the effective interest rate on
the Term Loan is 4.89%.
Barclays Bank PLC acted as Syndication Agent and Joint Lead
Arranger on the Term Loan with J.P. Morgan Chase Bank, N.A.
remaining as administrative agent. The additional lenders acting as
Joint Lead Arrangers and Co-Documentation Agents were The
Huntington National Bank, Mizuho Bank, Ltd, Raymond James Bank,
Truist Bank, and Wells Fargo Bank, N.A..
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 Term Loan and 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/20240314251704/en/
Four Corners Property Trust: Bill Lenehan, 415-965-8031 CEO
Gerry Morgan, 415-965-8032 CFO
Four Corners Property (NYSE:FCPT)
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