By Marisa Wong
Los Angeles, June 5 – Four Corners Property Trust, Inc. entered into agreements to issue $100 million of senior notes with a 10-year term and priced at a fixed interest rate of 6.44%, according to a press release.
In connection with the private placement, the company terminated interest rate swaps entered into previously to hedge the interest rate of this offering. This resulted in a gain of $8.1 million for the company and a 5.39% yield to maturity including the gain. The gain will be amortized straight line over the life of the notes and effectively makes the all-in interest rate, after amortizing the gain, 5.63%.
With the new issuance, the company’s weighted average debt maturity is about 5.3 years, excluding the company’s unsecured revolving credit facility.
The notes are scheduled to fund on July 12.
Proceeds from the offering will be used for general corporate purposes, including the funding of acquisitions.
Based in Mill Valley, Calif., Four Corners is a real estate investment trust primarily engaged in the ownership, acquisition and leasing of restaurant and retail properties.
| Issuer: | Four Corners Property Trust, Inc.
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| Amount: | $100 million
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| Issue: | Senior notes
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| Maturity: | 10 years
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| Coupon: | 6.44%
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| Announcement date: | June 5
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| Settlement date: | July 12
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| Distribution: | Private placement
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