S&P puts Store Capital on watch

S&P said it placed all its ratings on Store Capital Corp. (STOR), including the BBB issuer rating, on CreditWatch with negative implications.

The CreditWatch follows the announcement that affiliates of GIC and Oak Street Real Estate Capital will buy the company in an all-cash transaction valued at about $14 billion. The deal is expected to close in the first quarter of 2023.

“We anticipate STOR's key credit metrics could deteriorate following the close of the acquisition. At present, we do not know the breakdown of ownership and control between GIC and the funds managed by Oak Street Real Estate Capital. However, we anticipate its acquisition to result in a more aggressive financial strategy with greater debt to maximize shareholder returns,” S&P said in a press release.

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