First Offering of Notes Enhances Balance Sheet Flexibility
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--
STORE
Capital Corporation (NYSE: STOR), an internally managed net-leasereal estate investment trust (REIT) that invests in Single Tenant
Operational Real Estate, today announced the
closing of its first privately placed offering of $175 million principal
amount of investment grade-rated senior unsecured notes. The notes were
sold in two series consisting of $75 million of 4.95% Series A Notes due
November 21, 2022; and $100 million of 5.24% Series B Notes due November
21, 2024 (collectively, the “Notes”). The Notes will pay a fixed rate of
interest semi-annually on May 21 and November 21 of each year,
commencing May 21, 2016 and were rated BBB- by Fitch Ratings, Inc.
“This inaugural private placement term note issuance is an important
strategic step that makes us one of the few REITs that have a highly
rated borrowing conduit, complemented by the ability to issue corporate
investment-grade term notes,” said Christopher Volk, Chief Executive
Officer. “Over the next few years, as we become a seasoned term note
issuer and take advantage of our term borrowing diversity, we expect
this strategy to result in a cost of capital advantage that will benefit
our stockholders and customers. We are encouraged by the broad interest
from debt investors in STORE and look forward to working together in the
future as we continue to grow this great company.”
Net proceeds from the offering will be used to repay outstanding amounts
on the Company’s unsecured revolving credit facility.
Goldman, Sachs & Co. and Morgan Stanley acted as placement agents on the
transaction.
The offer and sale of the Notes have not been registered under the
Securities Act of 1933 as amended, and the Notes may not be offered or
sold in the United States or to U.S. persons absent registration or an
applicable exemption from registration requirements. This press release
does not constitute an offer to sell or a solicitation of an offer to
buy the Notes, nor shall there be any offer, solicitation or sale of any
Notes in any jurisdiction in which such offer, solicitation or sale
would be unlawful.
About STORE Capital
STORE Capital Corporation is an internally managed net-lease real estate
investment trust, or REIT, that is the leader in the acquisition,
investment and management of Single Tenant Operational Real Estate,
which is its target market and the inspiration for its name. STORE
Capital is one of the largest and fastest growing net-lease REITs and
owns a large, well-diversified portfolio that consists of investments in
over 1,246 property locations, substantially all of which are profit
centers, in 46 states. Additional information about STORE Capital can be
found on its website at www.storecapital.com.
Forward-Looking Statements
Certain statements contained in this press release that are not
historical facts contain forward-looking statements. Forward-looking
statements can be identified by the use of words such as "estimate,"
"anticipate," "expect," "believe," "intend," "may," "will," "should,"
"seek," "approximate" or "plan," or the negative of these words and
phrases or similar words or phrases. Forward-looking statements, by
their nature, involve estimates, projections, goals, forecasts and
assumptions and are subject to risks and uncertainties that could cause
actual results or outcomes to differ materially from those expressed in
the forward-looking statements. For more information on risk factors for
STORE Capital’s business, please refer to the periodic reports and
prospectuses it files with the SEC from time to time. These
forward-looking statements speak only as of the date of this press
release and should not be relied upon as predictions of future events.
STORE Capital expressly disclaims any obligation or undertaking to
update or revise any forward-looking statements contained herein, to
reflect any change in STORE Capital’s expectations with regard thereto,
or any other change in events, conditions or circumstances on which any
such statement is based, except as required by law.
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Financial Profiles
Moira Conlon, 310-622-8220
STORECapital@finprofiles.com
Source: STORE Capital Corporation