SCOTTSDALE, Ariz., April 28, 2022–(BUSINESS WIRE)–Capital Corporation STORE (NYSE: STOR), an internally managed real estate investment trust (REIT) that invests in Ssimple Jchild Ooperational Real EState, today announced that it has completed a $600 million long-term unsecured debt financing.
This debt transaction consisted of floating rate loans of $400 million over five years and $200 million over seven years. The loans were effectively converted at a weighted average fixed rate of 3.68% for the term of the loans through the use of interest rate swaps.
The Company is using the proceeds of the transaction primarily to repay amounts outstanding on its unsecured revolving credit facility and to prepay, without penalty, $134.5 million of STORE Master Funding Series 2014-1 Notes, Class A- 2, which carried a coupon rate of 5.0%, translating into annual interest cost savings of $1.8 million. The remaining proceeds will be used to fund growth.
“We are very pleased with the execution of this long-term unsecured debt transaction which demonstrates our financial flexibility,” said Mary Fedewa, Managing Director of STORE Capital. “Even with market uncertainty and a rising rate environment, we were able to effectively secure a very favorable transaction with broad participation from our banking partners. This transaction also fits perfectly into our well-laddered debt maturities, reduced our overall cost of long-term debt capital and provides sufficient liquidity to fund our active pipeline of investment opportunities at attractive spreads.”
The loans were funded by a group of banks led by KeyBanc Capital Markets Inc., Regions Capital Markets and Capital One, National Association acting as Joint Lead Arrangers and Joint Bookrunners; The national association KeyBank is the administrative agent.
About STORE Capital
STORE Capital Corporation is an internally managed net lease real estate investment trust, or REIT, that is a leader in the acquisition, investment and management of single-tenant operational real estate, which is its target market and the inspiration of his name. STORE Capital is one of the largest and fastest growing net leasehold REITs with a large and well-diversified portfolio consisting of investments in more than 2,850 real estate locations across the United States, which are for most profit centers. Additional information about STORE Capital is available on its website at www.storecapital.com.
Certain statements in this press release that are not historical facts may contain forward-looking statements. Forward-looking statements can be identified by the use of words such as “estimate”, “anticipate”, “expect”, “believe”, “intend”, “may”, “will”, ” should”, “seek”, “approximate” or “expected”, or the negative form of these words and expressions or similar words or expressions. Forward-looking statements, by their nature, involve estimates, projections, objectives, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. . For more information on the risk factors for STORE Capital’s business, please refer to the periodic reports it files from time to time with the SEC. These forward-looking statements speak only as of the date of this press release and should not be relied upon as predictions of future events. STORE Capital expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in STORE Capital’s expectations with respect thereto, or any other change in events, conditions or circumstances on which such statement is based, except as required by law.
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