Four Corners Property Trust announced that it has secured a new $200 million senior unsecured delayed draw term loan facility, strengthening its capital base to support ongoing and future property investments.
The seven-year facility matures on April 6, 2033. An initial $50 million has been drawn at closing and will be used to fund the company’s immediate investment pipeline and general corporate purposes. The remaining $150 million is expected to be deployed in phases during late Q2 and early Q3 2026, at the company’s discretion, primarily to support additional acquisitions.
The loan carries a credit margin of 1.25% over SOFR, reflecting the company’s investment-grade credit ratings of BBB and Baa3. The structure includes a delayed draw feature, allowing FCPT to align capital deployment with acquisition timing without incurring additional costs.
Following the initial draw, FCPT has hedged approximately 96% of its outstanding term loans, with about 98% of its overall debt profile fixed through November 2027. On a pro forma basis, assuming full deployment of the facility, the company’s run-rate leverage is expected to be approximately 5.4x, within its stated target range of 5.0x to 6.0x.
The facility was led by The Huntington National Bank as administrative agent, with Huntington and U.S. Bank serving as joint bookrunners and lead arrangers. Additional participants include Fifth Third Bank and Raymond James Bank.
FCPT, headquartered in Mill Valley, California, is a real estate investment trust focused on acquiring and leasing high-quality restaurant and retail properties under net lease structures.
KEY QUOTES:
“We are very thankful for the continued strong support of our bank partners. The Term Loan Facility provides us with $200 million of incremental capital priced at highly attractive all-in rates to fund new property investments at accretive spreads of roughly 200+ basis points to historical acquisition yields. Additionally, the delayed draw function will allow us to match our sources and uses at no additional cost.”
Patrick Wernig, Chief Financial Officer of Four Corners Property Trust
“We believe that FCPT is well positioned to deploy significant capital this year. While this transaction is significant, we note that FCPT still benefits from further dry powder within our stated net leverage range of 5.0x-6.0x.”
Bill Lenehan, Chief Executive Officer of Four Corners Property Trust
