Four Corners Property Trust (NYSE: FCPT) adds $200M 7-year term loan
Rhea-AI Filing Summary
Four Corners Property Trust entered into a new $200 million senior unsecured delayed draw term loan facility with a syndicate of banks, maturing on April 6, 2033. The company drew $50 million at closing to fund its immediate investment pipeline and other general corporate purposes.
The remaining $150 million of commitments can be drawn later and is expected to fund additional acquisition pipeline opportunities. Pricing is based on SOFR or an alternate base rate plus a margin linked to the company’s investment‑grade credit ratings, with financial covenants limiting leverage and requiring minimum coverage ratios.
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Insights
FCPT locks in long-dated, mostly fixed-rate debt to support acquisitions.
Four Corners Property Trust secured a $200 million senior unsecured delayed draw term loan, with $50 million funded immediately and the balance earmarked for acquisition pipeline funding. The facility has a seven-year term to April 6, 2033 and is unsecured.
Pricing is set at a margin over SOFR, currently noted at a 1.25% credit spread in the press release, reflecting investment grade ratings of BBB/Baa3 on senior unsecured debt. The company highlights an estimated all-in rate of about 4.9%, which it compares to historical acquisition yields.
Management states that, including the initial draw, 96% of term loans are hedged and 98% of total debt is fixed rate through November 2027. Pro forma for fully drawing and deploying the facility, estimated run-rate leverage is about 5.4x, within the stated net leverage range of 5.0x–6.0x outlined by the company.
8-K Event Classification
Key Figures
Key Terms
delayed draw term loan facility financial
secured overnight financing rate (SOFR) financial
fixed charge coverage ratio financial
unencumbered leverage ratio financial
investment grade ratings financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
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Item 1.01 Entry into a Material Definitive Agreement.
On April 6, 2026 (the “Closing Date”), Four Corners Property Trust, Inc. (the “Company”) and its subsidiary, Four Corners Operating Partnership, LP (the “Borrower”), entered into a Term Loan Agreement (the “Loan Agreement”) with The Huntington National Bank ("Huntington") as administrative agent, with Huntington and U.S. Bank, N.A. acting as Joint Bookrunners and Joint Lead Arrangers and additional lenders included Fifth Third Bank, N.A. which acted as Joint Lead Arranger and Raymond James Bank which acted as Documentation Agent (the “Lenders”).
The Loan Agreement provides for a senior unsecured delayed draw term loan facility in an aggregate principal amount of $200.0 million (the “Term Loan Facility”), $50.0 million of which was funded on the Closing Date. The Loan Agreement has an accordion feature to add one or more tranches of incremental delayed draw term loan commitments up to an additional aggregate amount not to exceed $100.0 million, subject to certain conditions, including one or more new or existing Lenders agreeing to provide commitments for such increased amount.
The initial loans under the Loan Agreement accrue interest at a per annum rate equal to, at the Borrower’s election, either (a) a forward-looking term rate based on the secured overnight financing rate (“SOFR”) plus an applicable margin ranging from 1.15% to 2.20%, or (b) an alternate base rate determined according to the highest of (i) the prime rate, (ii) the federal funds rate plus 0.50%, or (iii) the forward-looking term rate based on SOFR for a one-month interest period plus 1.00%, in each case plus an applicable margin ranging from 0.15% to 1.20%. In each case, the applicable margin is determined by reference to the Company’s senior, unsecured, long-term indebtedness credit rating applicable from time to time. In the event that all or a portion of the principal amount of any loan borrowed pursuant to the Loan Agreement is not paid when due, interest will accrue at the rate that would otherwise be applicable thereto plus 2.00%. The Borrower is required to pay a ticking fee equal to 0.25% per annum on the average daily balance of unfunded delayed draw term loan commitments under the Term Loan Facility, which shall accrue beginning on the ninety-first day after the Closing Date until the one-year period following the Closing Date.
Any loans under the Loan Agreement may be prepaid at any time, subject to (i) a prepayment fee of 2.00% of the principal amount of the then-outstanding loans prepaid on such date for any prepayment made prior to the first anniversary of the Closing Date and (ii) a prepayment fee of 1.00% of the principal amount of the then-outstanding loans prepaid on such date for any prepayment between the first and second anniversaries of the Closing Date. No prepayment fee is due on any loans prepaid on or after the second anniversary of the Closing Date. No amortization payments are required on any term loan prior to its maturity date. The term loan facility matures on April 6, 2033.
Pursuant to a parent guaranty entered into on April 6, 2026, the obligations under the Loan Agreement are guaranteed, on a joint and several basis, by the Company and its subsidiary, Four Corners GP, LLC (the “Guaranty”).
The Loan Agreement contains customary affirmative and negative covenants that, among other things, require customary reporting obligations, contain obligations to maintain status as a real estate investment trust, and restrict, subject to certain exceptions, incurrence of secured debt, the ability of the Borrower and the guarantors under the Guaranty to enter into mergers, consolidations, sales of assets and similar transactions, limitations on distributions and other restricted payments, and limitations on transactions with affiliates. In addition, the Borrower will be subject to the following financial covenants: (1) total leverage ratio not to exceed 60%, (2) mortgage-secured leverage ratio not to exceed 40%, (3) minimum fixed charge coverage ratio of 1.50 to 1.00, (4) maximum unencumbered leverage ratio not to exceed 60% and (5) minimum unencumbered interest coverage ratio not less than 1.75 to 1.00.
The Loan Agreement contains customary events of default including, among other things, payment defaults, breach of covenants, cross acceleration to material recourse indebtedness, bankruptcy-related defaults, judgment defaults, and the occurrence of certain change of control events. The occurrence of an event of default (after notice and cure periods in certain circumstances) will limit the ability of the Company and the Borrower to make distributions and may result in the termination of the credit facility and the acceleration of repayment obligations.
The foregoing description does not purport to be a complete description and is qualified in its entirety by reference to the Loan Agreement and the Guaranty, copies of which are filed as Exhibits 10.1 and 10.2, respectively, to this Current Report on Form 8-K and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 above is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On April 6, 2026, the Company issued a press release announcing its entry into the Loan Agreement. The Company’s press release is attached as Exhibit 99.1 hereto and is incorporated by reference in this Item 7.01.
Members of management of the Company will present an overview of the Term Loan Facility during upcoming investor presentations. A copy of the presentation is attached as Exhibit 99.2 and incorporated by reference herein.
The information in this Item 7.01 and Exhibits 99.1 and 99.2 to this Form 8-K is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall they be deemed to be incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. |
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Exhibit Description |
10.1 |
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Term Loan Agreement, dated April 6, 2026, among Four Corners Operating Partnership, LP, as Borrower, Four Corners Property Trust, Inc., as the Company, the Lenders from time to time party thereto, and The Huntington National Bank, as Administrative Agent |
10.2 |
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Parent Guaranty, dated April 6, 2026, by Four Corners Property Trust, Inc. and Four Corners GP, LLC, for the benefit of The Huntington National Bank, as Administrative Agent |
99.1 |
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Press Release Dated April 6, 2026 |
99.2 |
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Investor Presentation of Four Corners Property Trust, Inc. - Term Loan Facility |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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FOUR CORNERS PROPERTY TRUST, INC. |
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Date: |
April 6, 2026 |
By: |
/s/ JAMES L. BRAT |
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James L. Brat |
FCPT Announces New Seven-Year $200 Million Term Loan Facility
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.
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.
Cautionary Note Regarding Forward-Looking Statements
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.
Four Corners Property Trust:
Bill Lenehan, 415-965-8031
Chief Executive Officer
Patrick Wernig, 415-965-8038
Chief Financial Officer
“ APRIL 2026 $200 MILLION SEVEN YEAR TERM LOAN SNAPSHOT FCPT closed on an incremental $200 million 7-year delayed draw Term Loan with lenders from the existing credit facility $50 million was drawn at closing to fund the immediate investment pipeline and other general corporate purposes The remaining $150 million is expected to fund additional pipeline acquisitions via the delayed draw feature FCPT expects to draw the remaining Term Loan balance between late Q2 and early Q3 Term Loan credit margin is 1.25% over SOFR and the estimated all-in rate is 4.9%1 which represents roughly 200+ basis points of spread to historical acquisition yields FCPT has hedged 96% of outstanding Term Loans at a 3.0% blended hedged rate and its overall debt profile is 98% fixed through November 2027 Pro forma for fully drawing and deploying the $200 million Term Loan, FCPT’s estimated run-rate leverage is approximately 5.4x Note: Term Loan and Revolver maturities are shown fully extended. New Term Loan shown fully drawn DEBT MATURITY SCHEDULE ($ MILLIONS) Based on current floating SOFR rate of 3.65% plus credit spread of 1.25%