Store Capital adds $467.5 million unsecured term loans, repays bridge loan

By Wendy Van Sickle

Columbus, Ohio, Dec. 20 – Store Capital LLC announced a series of transactions that resulted in it picking up $467.5 million of unsecured term loans and repaying the remaining principal on its original $2 billion secured bridge loan, according to an 8-K filing with the Securities and Exchange Commission and a news release.

Store entered on Dec. 14 into an amendment to its Feb. 3, 2023 unsecured credit agreement with KeyBank NA as administrative agent to increase the capacity for uncommitted incremental term loans and revolving commitments to allow for a total amount of revolving and term loans of $3.2 billion, up from $2.5 billion.

Immediately on the effectiveness of that amendment, Store entered into an incremental amendment providing for a new class of term loans under the credit agreement in a principal amount of $467.5 million. The new term loans are on the same terms as the existing loans under the credit agreement, except that they have a maturity date of July 3, 2026, subject to two 12-month extension options and bear interest at SOFR plus a margin ranging from 120 basis points to 180 bps, depending on the company’s consolidated total leverage ratio.

The new term loans bring Store’s total term loan borrowings to $1.3 billion.

The company used proceeds from the new term loans, along with cash on hand, to fully repay and terminate the debt under its secured credit agreement dated Feb. 3, 2023 with Credit Suisse AG, Cayman Islands Branch as administrative agent. That bridge loan was incurred in connection with the acquisition of Store by GIC from funds managed by Blue Owl Capital. It had a maturity date in February 2025, an original $2 billion principal amount and an outstanding balance of $960 million as of Sept. 30.

“Paying off the $2 billion secured bridge loan more than a year before its maturity, demonstrates our continued access to capital and delivers on our commitment to return to the unsecured debt levels at which we operated prior to going private,” Mary Fedewa, president and chief executive officer of Store, said in the news release.

Store Capital is a Scottsdale, Ariz.-based net-lease real estate investment trust that invests in single tenant operational real estate.

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