MILL VALLEY, Calif.--(BUSINESS WIRE)--
Four Corners Property Trust (NYSE:FCPT), a real estate investment
trust engaged in the ownership of high-quality, net-leased restaurant
properties (“FCPT” or the “Company”), announced today that the Company
has entered into a $650 million credit agreement consisting of a 5-year
term loan of $400 million and a 4-year revolving credit facility of $250
million to replace the Company’s existing $750 million bank credit
facility. The recasting extended the maturities of both the term loan
and the revolving facility by two years, and increased the Company’s
weighted average debt maturity to approximately 5.9 years. FCPT expects
to save at least $1.8 million in annual cash interest expense due to
reduced margin pricing and lower unused revolver fees.
All of the lenders in the previous credit facility participated in the
new facility which was led by JPMorgan Bank, Barclays Bank and Merrill
Lynch, Pierce, Fenner & Smith Incorporated as Joint Lead Arrangers.
Wells Fargo Bank, U.S. Bank National Association and Fifth Third Bank
were Documentation Agents and other bank participants were Morgan
Stanley Bank, Goldman Sachs Bank, Raymond James Bank, Seaside National
Bank & Trust and Woodforest National Bank.
“We are very appreciative of the support of our bank partners and their
renewed commitment to our growth and future. The improved pricing and
borrowing terms reflect the quality of our portfolio, our disciplined
approach to diversification, and our continued commitment to a strong,
investment-grade balance sheet,” said Gerry Morgan, Chief Financial
Officer of FCPT. Mr. Morgan added, “Our demonstrated access to
attractive and diverse long-term debt and equity capital over the last
year not only supported the improved pricing and terms, but also allowed
us to reduce our borrowing costs by decreasing the size of our revolver.”
The new $400 million unsecured term loan matures in November 2022. The
term loan currently bears interest at LIBOR plus 135 basis points versus
pricing of LIBOR plus 170 basis points under the previous term loan.
Including swaps that effectively fix the interest rate, the term loan’s
all-in cash interest rate is approximately 2.7% through November 2018.
In conjunction with closing the new facility and as previously
disclosed, FCPT established additional swaps in the third quarter that
fix 75% of the term loan’s rate exposure from November 2018 through the
new maturity date of November 2022. The all-in cash interest rate on the
75% of the term loan that is fixed is approximately 3.0%, 3.1%, 3.4% and
3.5% for 2019, 2020, 2021 and 2022, respectively.
The new $250 million revolving credit facility matures in November 2021
and can be extended for two six-month periods until November 2022 at the
Company’s option and subject to satisfaction of certain conditions and
the payment of extension fees. Borrowing under the new revolving
facility currently bears interest at LIBOR plus 145 basis points versus
pricing of LIBOR plus 175 basis points under the previous revolving
facility. The unused fee on the revolver was reduced to 30 basis points.
The credit agreement includes a $250 million accordion feature such that
the credit facilities can be increased up to $900 million in aggregate,
subject to obtaining additional lender commitments.
About FCPT
FCPT, headquartered in Mill Valley, CA, is a real estate investment
trust primarily engaged in the acquisition and leasing of restaurant
properties. The Company seeks to grow its portfolio by acquiring
additional real estate to lease for use in the restaurant and related
food services industry. Additional information about FCPT can be found
on the website at www.fcpt.com.
Forward-Looking Statements
This news release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995 which
represent the current expectations and beliefs of management of Four
Corners Property Trust, Inc. (“FCPT”) concerning the proposed
transactions, the anticipated consequences and benefits of the
transactions and the targeted close date for the transactions, and other
future events and their potential effects on FCPT, including, but not
limited to, statements relating to anticipated financial and operating
results, the company’s plans, objectives, expectations and intentions,
cost savings and other statements, including words such as “anticipate,”
“believe,” “confident,” “plan,” “estimate,” “expect,” “intend,” “will,”
“should,” “may,” and other similar expressions. Such statements are
based upon the current beliefs and expectations of FCPT’s management,
and involve known and unknown risks, uncertainties, and other factors
which may cause the actual results, performance, or achievements of FCPT
to be materially different from future results, performance or
achievements expressed or implied by such forward-looking statements.
Such factors include, without limitation: changes in asset quality and
credit risk; ability to sustain revenue and earnings growth; changes in
political, economic or market conditions generally and the real estate
and capital markets specifically; the impact of increased competition;
the availability of capital and financing; tenant or seller(s)
bankruptcies; risks associated with the acquisition, development,
expansion, leasing and management of properties; changes in market
rental rates; trends in the retail or restaurant industry; relationships
with tenants; competitive market forces; the level and volatility of
interest rates; the rate of revenue increases as compared to expense
increases; the financial stability of tenants within the retail or
restaurant industry; the restrictions in current financing arrangements
or the failure to comply with such arrangements; the liquidity of real
estate investments; the impact of changes to tax legislation and FCPT’s
tax positions; failure to qualify as a real estate investment trust; the
failure to refinance debt at favorable terms and conditions; loss of key
personnel; material changes in the dividend rates on securities or the
ability to pay dividends on common shares or other securities; possible
restrictions on the ability to operate or dispose of owned properties;
the failure to achieve earnings/funds from operations targets or
estimates; the failure to achieve projected returns or yields on
development and investment properties (including joint ventures);
expected gains on debt extinguishment; changes in generally accepted
accounting principles or interpretations thereof; terrorist activities
and international hostilities; the unfavorable resolution of legal
proceedings; the impact of future acquisitions and divestitures; assets
that may be subject to impairment charges; significant costs related to
environmental issues; and other risks and uncertainties, including those
detailed from time to time in FCPT’s statements and periodic reports
filed with the Securities and Exchange Commission, including those
described under “Risk Factors”. The forward-looking statements in this
communication are qualified by these risk factors. Each statement speaks
only as of the date of this press release and FCPT undertakes no
obligation to update or revise any forward-looking statements to reflect
subsequent events or circumstances. Actual results may differ materially
from current projections, expectations, and plans, if any. Investors,
potential investors and others should give careful consideration to
these risks and uncertainties.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171002006425/en/
Four Corners Property Trust:
Bill Lenehan, 415-965-8031
CEO
Gerry
Morgan, 415-965-8032
CFO
Source: Four Corners Property Trust