Store Capital enters into $100 million term loan, expands revolver

By Marisa Wong

Morgantown, W.Va., May 2 – Store Capital Corp. entered into a $100 million term loan credit agreement on April 26, according to an 8-K filing with the Securities and Exchange Commission.

KeyBanc Capital Markets Inc. and Wells Fargo Securities, LLC acted as joint lead arrangers and joint bookrunners, with KeyBank NA as the administrative agent and Wells Fargo Bank, NA as the syndication agent. BMO Harris Bank, NA, Capital One Bank, Regions Bank and SunTrust Bank are the co-documentation agents.

The term loan matures on April 26, 2021.

The credit agreement includes an accordion feature that allows the facility to be increased by an additional $200 million for a maximum of $300 million.

Concurrent with the closing of the credit agreement, the company entered into interest rate swap agreements that effectively convert the floating rate to a fixed rate, which was about 2.7% at closing. Interest would have been Libor plus an applicable margin of 135 basis points to 215 bps, depending on the company’s ratio of consolidated total debt to consolidated total adjusted asset value. The initial applicable margin was 135 bps.

The company intends to use the proceeds to reduce amounts outstanding under its unsecured revolver and for general corporate purposes.

Also on April 26, the company increased the total commitment under its previously amended revolving credit agreement to $500 million from $400 million by accessing $100 million of availability under the $400 million accordion feature.

Store Capital is a real estate investment trust based in Scottsdale, Ariz.

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