Four Corners Property Trust, a real estate investment trust primarily engaged in the ownership and acquisition of net-leased restaurant and retail properties, entered into an incremental amendment to the third amended and restated revolving credit and term loan agreement with a group of existing lenders. The company specifically utilized the accordion feature of the credit agreement to enter into a new $85 million term loan, which matures in March 2027 with one 12-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 as well as for acquisitions and other general corporate purposes.
“We are very appreciative of the support of our existing bank partners,” Bill Lenehan, CEO of Four Corners Property Trust, said. “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 Four Corners Property Trust’s current investment grade ratings of BBB/Baa3 (Fitch/Moody’s), the effective interest rate on the term loan is 4.89%.
Barclays Bank acted as syndication agent and joint lead arranger on the term loan, with JPMorgan Chase Bank remaining as administrative agent. The additional lenders acting as joint lead arrangers and co-documentation agents were Huntington National Bank, Mizuho Bank, Raymond James Bank, Truist Bank and Wells Fargo.
