SCOTTSDALE, Ariz.--(BUSINESS WIRE)--STORE Capital Corporation (NYSE: STOR), an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate, today announced the closing of its first public offering of $350 million principal amount of investment grade-rated 4.50% senior notes (the “Notes”) due March 15, 2028.
The Notes were rated Baa2 by Moody’s Investors Service and BBB by Fitch Ratings and S&P Global Ratings. Net proceeds from the issuance of the Notes will be used to fund property acquisitions, to repay indebtedness outstanding under the Company’s unsecured revolving credit facility, for working capital, and other general corporate purposes, or a combination of the foregoing.
“It has always been our strategy to enter the public debt markets and we are excited to announce our inaugural issuance of public notes in the amount of $350 million,” said Christopher H. Volk, President and Chief Executive Officer of STORE Capital. “Our ability to issue corporate investment-grade term debt expands our borrowing capacity and flexibility. Going forward, we plan to continue to issue both secured debt under our S&P A+ rated Master Funding conduit and access the public unsecured debt market where the volume is greater and the efficiency is extremely high on a relative basis. Together, these will give us the ability to strategically source our debt capital and manage our cost of capital while maintaining well-laddered debt maturities and prudent leverage targets. We welcome our new debt investors and appreciate their support.”
Goldman Sachs & Co. LLC, Morgan Stanley, Wells Fargo Securities, Citigroup, J.P. Morgan, KeyBanc Capital Markets and SunTrust Robinson Humphrey acted as joint book-running managers for the sale of the Notes. BMO Capital Markets, Capital One Securities and Regions Securities LLC acted as co-managers.
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 1,900 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.
Certain statements contained in this press release that are not historical facts, including statements relating to the intended use of proceeds from the offering, 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 the Company’s business, please refer to the periodic reports and prospectuses and prospectus supplements the Company files with the Securities and Exchange Commission from time to time. These forward-looking statements herein speak only as of the date of this press release and should not be relied upon as predictions of future events. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein, to reflect any change in the Company’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.