STORE Capital Corporation (NYSE:STOR), an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate, announced today that it has issued an aggregate of $335 million of long-term fixed-rate notes designated as STORE Master Funding Net Lease Mortgage Notes, Series 2016-1. This is the seventh note issuance under STORE’s Master Funding debt program, its proprietary debt financing vehicle.
As part of the issuance, $200 million of 10-year Class A-1 notes were issued at an interest rate of 3.96% and sold in a private placement to qualified institutional buyers. STORE also issued $135 million of 10.5-year Class A-2 notes which were retained by STORE for future sale to qualified institutional buyers. Both classes of notes were rated A+ by Standard & Poor’s Ratings Services.
“This achievement represents our lowest long-term Master Funding borrowing cost since our inaugural issuance in 2012,” said Christopher H. Volk, President and CEO. “With this Master Funding issuance, we introduced a new and important feature, which is our ability to issue A+ rated notes, while only selling the amount necessary to address our current borrowing needs. In this case, we issued but retained $135 million of Class A-2 notes that we can sell in an efficient manner at a later date. This issuance also reflects our long-term strategy to pair our Master Funding debt issuances with our complementary unsecured term note program to realize greater capital flexibility, efficiency and diversity over time.”
The notes are not registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. The notes may only be offered and sold in the United States in accordance with Rule 144A under the Securities Act. This press release does not constitute an offer to sell or the solicitation of any offer to buy nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful under the laws of such jurisdiction.
About STORE Capital
STORE Capital Corporation is an internally managed net-lease real estate investment trust, or REIT, that is a 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 1,500 property locations, substantially all of which are profit centers, in 48 states. Additional information about STORE Capital can be found on its website at www.storecapital.com