Four Corners Property Trust entered into a new $200 million senior unsecured delayed draw term loan facility with a group of lenders from its existing credit facility. The Term Loan Facility has a seven-year tenor and matures on April 6, 2033. $50 million of the Term Loan Facility will be drawn at close and will be used to fund the Company?s immediate investment pipeline and other general corporate purposes.
The remaining $150 million of delayed draw term loan commitments under the Term Loan Facility are expected to fund additional pipeline acquisitions at the Company?s discretion. Four Corners Property Trust expects the remaining delayed draw term loan commitments to be fully funded during late Second Quarter and early Third Quarter of 2026. The Term Loan Facility contains a credit margin of 1.25% over SOFR as determined by Four Corners Property Trust?s current investment grade ratings of BBB/Baa3 (Fitch/Moody?s) on its senior unsecured debt.
Including the first $50 million draw, Four Corners Property Trust has hedged 96% of total outstanding term loans and its overall debt profile is 98% fixed rate through November 2027. Pro forma for fully drawing and deploying the $200 million Term Loan Facility, Four Corners Property Trust?s estimated run-rate leverage is approximately 5.4x. The facility was led by The Huntington National Bank as Administrative Agent with Huntington and U.S. Bank, N.A. acting as Joint Bookrunners and Joint Lead Arrangers.
Additional lenders include Fifth Third Bank, N.A. which acted as Joint Lead Arranger and Raymond James Bank which acted as Documentation Agent.
Four Corners Property Trust, Inc. is a real estate investment trust (REIT), which owns, acquires and leases properties for use in the restaurant and retail industries. The Company's segments are real estate operations and restaurant operations. Its real estate operations segment consists of rental revenues primarily generated by leasing restaurant properties to tenants through net lease arrangements under which the tenant is primarily responsible for ongoing costs relating to the properties. Its restaurant operations segment is conducted through a taxable REIT subsidiary and consists of its Kerrow Restaurant Operating Business. The Kerrow Restaurant Operating Business consists of seven LongHorn Steakhouse restaurants located in the San Antonio, Texas area. Its properties are located in Florida, Texas, Georgia, Ohio, Illinois, Indiana, Michigan, Pennsylvania, Wisconsin, Alabama, Minnesota, Arkansas, Louisiana, New York, Arizona, Nevada, Mississippi, and Colorado, among others.
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