Store Capital enters new facilities for $3.1 billion after acquisition

By William Gullotti

Buffalo, N.Y., Feb. 3 – Store Capital LLC, formerly Store Capital Corp., entered into new credit agreements totaling $3.1 billion on Friday in connection with its acquisition by GIC and Oak Street, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, affiliates of GIC, a Singaporean wealth fund, and Oak Street Real Estate Capital of the fund asset manager Blue Owl Capital Inc. bought Store Capital in an all-cash transaction valued at about $14.5 billion.

Store Capital signed a $2 billion secured term loan facility and property management agreement with Credit Suisse AG, Cayman Islands Branch as administrative agent.

The term loan, secured by the related property management agreement, matures Feb. 3, 2025 and includes two six-month extension options.

Borrowings from the secured term loan bear interest at SOFR plus a 275 basis point spread. The spread will be bumped to 300 bps if the outstanding balance exceeds $1.5 billion on May 3.

The company also signed a $1.1 billion unsecured credit agreement with KeyBank NA as administrative agent, which comprises a $500 million revolver and a $600 million term loan. The unsecured agreement also includes capacity for additional uncommitted incremental term loans and revolving commitments, whether in the form of additional facilities or an increase to the existing facilities, for up to $1.4 billion.

The revolver matures Feb. 3, 2027 and includes two six-month extension options.

There is a $200 million sublimit for swingline loans and a $75 million sublimit on letters of credit included in the revolver.

Revolver borrowings bear interest at SOFR plus a margin ranging from 100 basis points to 145 bps. There is also a facility fee ranging from 15 bps to 30 bps on the total facility commitments, regardless of utilization.

The margin and fee are determined by the company’s consolidated total leverage ratio.

The revolver was undrawn at closing.

The term loan facility matures April 28, 2027 and may not be extended.

Interest on term loans are also based on SOFR, but with margins ranging from 110 bps to 170 bps. The consolidated total leverage ratio likewise determines the margin.

In connection with the merger, on the closing date, Store Capital repaid in full all indebtedness, liabilities and other obligations outstanding under prior agreements. The repaid and terminated facilities included a $600 million unsecured revolver and a $600 million unsecured term loan, both with KeyBank as administrative agent.

The secured term loan facility included Citibank, NA as payment agent. KeyBank is acting as back-up manager for the included property management agreement.

Keybanc Capital Markets Inc., Truist Bank, JPMorgan Chase Bank, NA and Capital One, NA are the joint lead managers and joint bookrunners for the unsecured facility, with Regions Capital Markets also acting as a lead manager.

Truist, JPMorgan, and Capital One are also acting as co-syndication agents for the unsecured facility, with Regions Bank acting as documentation agent.

Store Capital is a Scottsdale, Ariz.-based net-lease real estate investment trust that invests in single tenant operational real estate.

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