STORE Capital, an internally managed net-lease real estate investment trust, announced the completion of $525 million in long-term fixed-rate notes designated as STORE Master Funding Net-Lease Mortgage Notes, Series 2026-2. This is the sixteenth note issuance under STORE’s Master Funding debt program.
The notes were issued in four classes in private placements to institutional buyers. Notes totaling $450.0 million were rated AAA by S&P Global Ratings, including $317.0 million of 5.67-year Class A-1 notes at an interest rate of 5.79% and $133.0 million of 3.14-year Class A-1-P notes at 5.56%. Notes totaling $75.0 million were rated AA, including $53.0 million of 5.67-year Class A-2 notes at 5.89% and $22.0 million of 3.14-year Class A-2-P notes at 5.71%. The weighted average all-in interest rate of the notes is 5.74%, with a weighted average all-in credit spread of 97 basis points and a weighted average life of 4.92 years.
Net proceeds from the transaction were used to redeem approximately $280 million of previously issued Master Funding notes maturing in the fourth quarter of 2026, which were prepayable without penalty, and to fund growth. The issuance represented credit spread tightening of 14 and 13 basis points for the AAA and AA bonds, respectively, compared to STORE’s May 2026-1 transaction, marking the lowest credit spread in the history of the Master Funding program and the first transaction with an all-in double-digit credit spread.
STORE Capital owns a portfolio of investments in more than 3,500 property locations across the United States.
KEY QUOTE:
“I am pleased to announce the successful closing of STORE’s sixteenth Master Funding transaction. We are so grateful for the unwavering confidence investors have demonstrated in STORE’s Master Funding program over the years and are excited to welcome our new investors who participated in this issuance. Despite a volatile market, we saw strong investor demand, enabling credit spread tightening of 14 and 13 basis points compared to our May 2026-1 transaction for the AAA and AA bonds, respectively. We are immensely proud of this issuance which represented the lowest credit spread in the history of our Master Funding program and the first transaction with an all-in double digit credit spread. In addition, with the capital we raised through this issuance, we paid off existing notes coming due in the fourth quarter of 2026, further improving the overall maturity profile of our debt.”
Mary Fedewa, President and Chief Executive Officer, STORE Capital
