STORE Capital Corp.closed $300 million of long-term unsecured debt, comprising $200 million of investmentgrade-rated senior notes and a $100 million floating-rate five-year term loan.
The privately placed senior notes are due April 28, 2026, andthe term loan was effectively converted to a fixed rate for the term of the loanthrough the use of interest rate swaps.
The company will use net proceeds from the issuance of the notesand term loan to reduce amounts outstanding under its unsecured credit facilityand for general corporate purposes.
STORE also expanded the size of the commitment amount under itsunsecured credit facility to $500 million by accessing $100 million of the accordionfeature. The accordion feature allows the company to boost the facility to as muchas $800 million over the term of the facility, which expires in September 2019.
The company's CEO, Christopher Volk, said in a news release thatthe notes and term loan bear a blended interest rate of approximately 4.1%.
Goldman Sachs & Co. and Morgan Stanley served as placementagents on the sale of the notes. KeyBanc Capital Markets and Wells Fargo SecuritiesLLC led the financing of the term loan.
The offer and sale of the notes have not been registered underthe Securities Act of 1933.