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STORE Capital Announces $300 Million Long-Term Debt Financing

SCOTTSDALE, Ariz., Apr 29, 2016 (BUSINESS WIRE) -- STORE Capital Corporation STOR, -0.70% an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate, today announced the closing of $300 million of long-term unsecured debt consisting of $200 million of privately placed investment grade-rated senior notes due April 28, 2026 (the “Notes”) and a $100 million floating-rate five-year term loan. The term loan was effectively converted to a fixed rate for the term of the loan through the use of interest rate swaps. The Notes were rated BBB- by Fitch Ratings, Inc. Net proceeds from the issuance of the Notes and the term loan will be used to reduce amounts outstanding under the Company’s unsecured credit facility and for general corporate purposes.

STORE also announced an increase in the size of the commitment amount under its unsecured credit facility to $500 million by accessing $100 million of the accordion feature. The accordion feature permits STORE to expand the facility to as much as $800 million over the term of the facility, which expires in September 2019.

“The unsecured term borrowing issuance is our second such issuance following the receipt of our investment-grade rating from Fitch Ratings in 2015,” said Christopher Volk, STORE’s Chief Executive Officer. “The Notes and term loan, which bear a blended interest rate of approximately 4.1%, are consistent with our strategy to evenly ladder our long-term debt maturities, while minimizing...