senior unsecured delayed draw term loan facilityfinancial
A senior unsecured delayed draw term loan facility is a committed loan arrangement that gives a borrower the right to take one or more lump-sum loans later (delayed draw) under a fixed repayment schedule (term loan). It ranks ahead of equity but is not backed by specific collateral (senior, unsecured), so lenders have priority in case of default but rely on the borrower’s general credit; investors watch it because it affects a company’s debt load, repayment risk, and future cash needs like a reserved but interest-bearing credit line.
delayed draw term loanfinancial
A delayed draw term loan is a financing agreement that lets a borrower take one or more lump-sum loans from a lender at agreed future dates within a set time window instead of receiving all funds up front. It matters to investors because it changes when and how much debt a company will carry, affecting cash flexibility, interest costs and risk exposure—think of it like an approved credit line you only tap when you need cash for a project.
sofrfinancial
The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.
investment grade ratingsfinancial
A designation from a credit rater that indicates a borrower or bond has relatively low risk of failing to repay debt, similar to a high personal credit score for a company or government. It matters to investors because it influences how much interest a borrower pays, how safe a bond is considered, and which funds or rules allow holding it — affecting yield, price stability, and whether conservative portfolios will buy it.
basis pointsfinancial
Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.
net leveragefinancial
Net leverage measures how many years it would take for a company to pay off its outstanding debt using its annual operating cash flow, after subtracting cash on hand from total debt. Think of it like a household’s mortgage balance minus savings divided by yearly income; a lower number means the company is in a safer position to handle debt, while a higher number signals greater financial risk and potential pressure on profits or growth.
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MILL VALLEY, Calif.--(BUSINESS WIRE)--
Four Corners Property Trust (NYSE:FCPT), a real estate investment trust primarily engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties (“FCPT” or the “Company”), announced today that the Company entered into a new $200 million senior unsecured delayed draw term loan facility (the “Term Loan Facility”) with a group of lenders from its existing credit facility. The Term Loan Facility has a seven-year tenor and matures on April 6, 2033. $50 million of the Term Loan Facility will be drawn at close and will be used to fund the Company’s immediate investment pipeline and other general corporate purposes.
The remaining $150 million of delayed draw term loan commitments under the Term Loan Facility are expected to fund additional pipeline acquisitions at the Company’s discretion. FCPT expects the remaining delayed draw term loan commitments to be fully funded during late Q2 and early Q3 of 2026. The Term Loan Facility contains a credit margin of 1.25% over SOFR as determined by FCPT’s current investment grade ratings of BBB/Baa3 (Fitch/Moody’s) on its senior unsecured debt. As of today, including the first $50 million draw, FCPT has hedged 96% of total outstanding term loans and its overall debt profile is 98% fixed rate through November 2027. Pro forma for fully drawing and deploying the $200 million Term Loan Facility, FCPT’s estimated run-rate leverage is approximately 5.4x.
Patrick Wernig, Chief Financial Officer of FCPT, commented, “We are very thankful for the continued strong support of our bank partners. The Term Loan Facility provides us with $200 million of incremental capital priced at highly attractive all-in rates to fund new property investments at accretive spreads of roughly 200+ basis points to historical acquisition yields. Additionally, the delayed draw function will allow us to match our sources and uses at no additional cost.”
Bill Lenehan, Chief Executive Officer of FCPT, added, “We believe that FCPT is well positioned to deploy significant capital this year. While this transaction is significant, we note that FCPT still benefits from further dry powder within our stated net leverage range of 5.0x-6.0x.”
The facility was led by The Huntington National Bank as Administrative Agent with Huntington and U.S. Bank, N.A. acting as Joint Bookrunners and Joint Lead Arrangers. Additional lenders include Fifth Third Bank, N.A. which acted as Joint Lead Arranger and Raymond James Bank which acted as Documentation Agent.
FCPT Credit Facility Summary ($ millions)
as of 4/6/2026
Fully Drawn
Capacity
Maturity
Including
Extensions
Extended Term
Remaining
Capacity
Maturity
Including
Extensions
Extended Term
Remaining
Revolver
$350
Feb-2029
Feb-2030
3.8
Revolver
$350
Feb-2029
Feb-2030
3.8
Term Loan Tranche
Principal
Maturity
Including
Extensions
Extended Term
Remaining
Term Loan Tranche
Principal
Maturity
Including
Extensions
Extended Term
Remaining
A-1
$2 25
Feb-2029
Feb-2030
3.8
A-1
$225
Feb-2029
Feb-2030
3.8
A-2
$100
Nov-2026
Nov-2027
1.6
A-2
$100
Nov-2026
Nov-2027
1.6
A-3
$90
Feb-2027
-
0.8
A-3
$90
Feb-2027
-
0.8
A-5
$85
Mar-2027
Mar-2028
1.9
A-5
$85
Mar-2027
Mar-2028
1.9
A-4
$90
Feb-2028
-
1.8
A-4
$90
Feb-2028
-
1.8
New Term Loan
$50
Apr-2033
-
7.0
New Term Loan
$200
Apr-2033
-
7.0
Term Loans
$640
2.8
Term Loans
$790
3.6
FCPT 2026-2028 Hedge Summary ($ millions)
as of 4/6/2026
Fully Drawn
Hedged Amount
As of
% of Total
4/6/2026 ($640mm)
Hedged
SOFR Rate
All-in
Rate
Hedged Amount
As of
% of Total
Fully Drawn ($790mm)
Hedged
SOFR Rate
All-in
Rate
$615
4/6/2026
96%
3.0%
4.0%
$615
4/6/2026
78%
3.0%
4.1%
$615
11/1/2026
96%
3.0%
4.0%
$615
11/1/2026
78%
3.0%
4.1%
$615
11/1/2027
96%
3.0%
4.0%
$615
11/1/2027
78%
3.0%
4.1%
$590
11/1/2028
92%
3.3%
4.3%
$590
11/1/2028
75%
3.3%
4.4%
Note: this table shows in-place swaps as of today; FCPT may add additional swaps as the Term Loan Facility is funded later this year
About FCPT
FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the ownership, acquisition and leasing of restaurant and retail properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and retail industries. Additional information about FCPT can be found on the website at www.fcpt.com.
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding FCPT’s intent, belief or expectations, including, but not limited to, statements regarding: operating and financial performance and intended use of proceeds from the Term Loan Facility. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made and, except in the normal course of FCPT’s public disclosure obligations, FCPT expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in FCPT’s expectations or any change in events, conditions or circumstances on which any statement is based. Forward-looking statements are based on management’s current expectations and beliefs and FCPT can give no assurance that its expectations or the events described will occur as described. For a further discussion of these and other factors that could cause FCPT’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in FCPT’s most recent annual report on Form 10-K, and other risks described in documents subsequently filed by FCPT from time to time with the Securities and Exchange Commission.
