US-based real estate investment firm Four Corners Property Trust (FCPT) has decided to raise $100m through issuing senior, unsecured, fixed rate notes.
The notes includes $50m with an eight-year term maturing on 20 December 2026 and priced at a fixed interest rate of 4.63%
The remaining $50m of notes have a maturing period of ten-year on 20 December 2028 and priced at a fixed interest rate of 4.76%.
Funding of the notes is likely to conclude by 20 December 2018.
Net proceeds from the offering will be spent to reduce amounts outstanding under FCPT’s unsecured credit facility. Additionally, funds raised will be used for future acquisitions and for general corporate purposes.
Recently, FCPT announced the acquisition of three corporate-operated Chili’s restaurants through a sale-leaseback transaction with certain subsidiaries of Brinker International for $9m.
One property is located in Texas while two restaurants are situated in Oklahoma. All three restaurants are under individual leases with 15 years of initial term and rent surges 10% every five years during the initial term.
FCPT noted that rent will support the conservative EBITDAR coverage, averaging 3.8x for the three restaurants.
The firm seeks to grow its portfolio by purchasing additional real estate to lease on a net basis for use in the restaurant and related food services industry.
FCPT has a strong portfolio of 506 restaurants located across 44 states, the company is positioned to grow and further diversify its portfolio.