Four Corners amends and restates revolver and term loan agreement

Chicago, June 4 – Four Corners Property Trust, Inc. entered into a second amended and restated revolving credit and term loan agreement on Friday with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The loan agreement, last amended on Oct. 2, 2017, provides for a $250 million revolver due Nov. 9, 2025 and a term loan facility for $400 million.

The term loan breaks down into a $150 million term loan A-1 that matures Nov. 9, 2025, a $100 million term loan A-2 maturing Nov. 9, 2026, a $50 million non-extended term loan A-2 maturing Nov. 9, 2023 and a $100 million non-extended term loan A-3 maturing March 9, 2024.

There is an accordion feature which allows an increase in the revolving commitments or the addition of one or more tranches of term loans up to an additional aggregate amount of $350 million.

The revolver has an interest rate of Libor plus 72.5 basis points to 140 bps.

The term loan A-1 and term loan A-2 bear interest at Libor plus 80 bps to 165 bps, while the two non-extended term loans bear interest at Libor plus 85 bps to 165 bps.

The Libor spreads are determined by total leverage unless Four Corners decides to base it on ratings once it receives investment-grade ratings from Moody’s Investors Service or S&P Global Ratings.

If the company uses leverage, the commitment fee on the revolver ranges from 15 bps to 30 bps per year. If the company uses ratings, the commitment fee will be between 12.5 bps to 30 bps.

There is benchmark fallback language for a rate potentially based on SOFR.

The revolver can be extended for up to one year at a cost of 6.25 bps for each six-month extension.

In addition, the borrower will be subject to the following financial covenants: total debt to consolidated capitalization value not to exceed 60%, mortgage-secured leverage ratio not to exceed 40%, total secured recourse debt not to exceed 5% of consolidated capitalization value, minimum fixed-charge coverage ratio of 1.5x, minimum consolidated tangible net worth, maximum unencumbered leverage ratio not to exceed 60% and minimum unencumbered interest coverage ratio not less than 1.75x.

JPMorgan Chase Bank and BofA Securities, Inc. are joint lead bookrunners and also joint lead arrangers alongside Wells Fargo Securities, LLC and U.S. Bank NA.

Bank of America, NA is the syndication agent.

Documentation agents are U.S. Bank NA, Wells Fargo Bank, NA, Fifth Third Bank, NA, Raymond James Bank and Morgan Stanley Senior Funding, Inc.

Based in in Mill Valley, Calif., Four Corners is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties.

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