Four Corners Property Trust (FCPT) has secured a $200 million senior unsecured delayed‑draw term loan facility with a seven‑year maturity that will mature on April 6, 2033. The facility, provided by a group of lenders from FCPT’s existing credit line, allows the REIT to draw on the credit line as needed to fund property acquisitions and other general corporate purposes.
The loan is structured with an initial $50 million draw at closing, with the remaining $150 million available for delayed draws expected to be fully funded during late Q2 and early Q3 of 2026. It carries a 1.25% spread over SOFR and is rated BBB/Baa3 on senior unsecured debt, reflecting FCPT’s investment‑grade credit profile. Ninety‑six percent of FCPT’s total outstanding term loans are hedged, and 98 percent of its overall debt is fixed‑rate through November 2027, providing strong interest‑rate protection.
Strategically, the facility gives FCPT a dry‑powder reserve that aligns with its granular acquisition strategy focused on mid‑size net‑lease properties. The additional liquidity enables the REIT to act quickly on attractive opportunities while maintaining a disciplined capital allocation approach and staying within its target net leverage range of 5.0x‑6.0x.
Financially, the new term loan will support a pro‑forma leverage of approximately 5.4x once fully deployed, and the pricing allows FCPT to acquire properties at accretive spreads of roughly 200 basis points above historical acquisition yields. The high fixed‑rate coverage and extensive hedging reduce interest‑rate risk, preserving earnings visibility and supporting the REIT’s long‑term investment horizon.
Prior to this announcement, FCPT’s debt structure included a $650 million credit facility that was recast and extended in June 2021. The new facility supplements that existing line, providing additional capacity without diluting equity or significantly altering the overall debt profile.
"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," said Patrick Wernig, Chief Financial Officer.
"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," added CEO Bill Lenehan.
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