Spirit Realty Capital units defease $488 million 2006 mortgage notes

By Marisa Wong

Madison, Wis., June 9 – Spirit Realty Capital, Inc.’s indirectly owned subsidiaries, Spirit SPE Portfolio 2006-1, LLC and Spirit SPE Portfolio 2006-2, LLC, defeased the loans outstanding under their loan agreement dated May 31, 2006, according to an 8-K filing with the Securities and Exchange Commission.

The loan, evidenced by five promissory notes totaling $545,655,010, had an interest rate of 6.5875% and a maturity date of June 5, 2016.

On June 5, the defeasance date, the principal balance outstanding under the loan agreement was about $488 million.

Prior to the defeasance date, the loans had been secured by 112 properties leased to Shopko Stores Operating Co., LLC, which had an aggregate gross book value of about $922 million as of March 31.

The borrowers funded the defeasance using a portion of the $726.2 million net proceeds from Spirit Realty’s sale of $402.5 million of 2.875% convertible senior notes due 2019 and $345 million of 3.75% convertible senior notes due 2021, completed on May 20.

In connection with the defeasance, the borrower incurred $56.5 million in costs and expenses.

Spirit is a self-administered and self-managed real estate investment trust based in Scottsdale, Ariz.

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