SCOTTSDALE, Ariz.--(EON: Enhanced Online News)--STORE Capital Corporation (NYSE: STOR) (the “Company”), an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate, announced today that it has raised $235 million in debt capital, at a weighted average interest rate of 3.7%, through the sale of $135 million of A+ rated notes under its STORE Master Funding debt program and a $100 million unsecured term loan. The STORE Master Funding notes, which were designated as STORE Master Funding Net Lease Mortgage Notes, Series 2016-1, Class A-2, were originally issued in October 2016 and retained by STORE for future sale. The notes were sold to a group of qualified institutional buyers at an interest rate of 4.32% and were rated A+ by Standard & Poor’s Ratings Services. The Company also raised $100 million through a floating-rate, two-year term loan with three one-year extension options, which was effectively converted to an initial fixed rate of 2.77% for the primary term of the loan through the use of an interest rate swap.
“With our previously announced public offering of common stock, which is scheduled to close later this week, this $235 million in fixed-rate term debt capital will provide us with full availability under our $500 million unsecured credit facility, together with added cash to our balance sheet”
Net proceeds from the sale of the Master Funding notes and the term loan will be used to reduce amounts outstanding under the Company’s unsecured credit facility and for general corporate purposes.
“With our previously announced public offering of common stock, which is scheduled to close later this week, this $235 million in fixed-rate term debt capital will provide us with full availability under our $500 million unsecured credit facility, together with added cash to our balance sheet,” said Christopher H. Volk, President and CEO. “These strategic actions lock-in attractive spreads for our recent investments, prudently manage interest rate risk and position us with abundant liquidity to address our robust pipeline of net lease investment opportunities.”
About STORE Capital
STORE Capital Corporation is an internally managed net-lease REIT that is the leader in the acquisition, investment and management of Single Tenant Operational Real Estate, which is its target market and the inspiration for its name. The Company is one of the largest and fastest growing net-lease REITs and owns a well-diversified portfolio that consists of investments in over 1,700 property locations, substantially all of which are profit-centers, in 48 states. Additional information about STORE Capital can be found on its website at www.storecapital.com.
Certain statements contained 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 "plan," or the negative of these words and phrases or similar words or phrases. Forward-looking statements include those relating to the closing of the common stock offering and the intended use of proceeds. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. For more information on risk factors for the Company’s business, please refer to the periodic reports and prospectuses and prospectus supplements it files with the SEC from time to time. 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. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein, to reflect any change in the Company’s expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except as required by law.