Business Context and Reporting Period
Company: Four Corners Property Trust, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: August 29, 2017
Event Date: August 29, 2017
The filing reports a corporate event involving Four Corners Operating Partnership, LP, the operating partnership of the Company. The report details the execution of a derivative instrument to manage interest rate exposure.
Key Financial Metrics
This filing does not contain comprehensive financial statements, revenue, profit, cash flow, or liquidity metrics. The only financial data provided relates to the specific hedging transaction:
- Instrument: Interest Rate Swap
- Counterparty: J.P. Morgan Chase Bank, N.A.
- Notional Value: $100.0 million (Months 1-12) and $200.0 million (Months 13-24)
- Fixed Rate Paid: 2.002%
- Variable Rate Received: One-month LIBOR (reset monthly)
- Effective Date: November 9, 2020
- Maturity Date: November 9, 2022
Material Changes
The filing does not report material changes to revenue, earnings, or debt levels compared to prior periods. The material change is the establishment of a new hedging agreement to mitigate interest rate risk inherent in the Company's variable rate debt. The filing explicitly states the agreement is not for trading purposes.
Outlook, Risks, and Management Commentary
Purpose: The swap was entered into to hedge against interest rate risk associated with variable rate debt.
Risk Mitigation: The transaction locks in a fixed cost of borrowing (2.002%) for a portion of the debt exposure starting in late 2020, protecting against potential increases in LIBOR.
Contingencies: None disclosed in this filing.
Investor Verification Checklist
- Verify the total outstanding variable rate debt to assess the percentage of exposure covered by this $100M-$200M swap.
- Confirm the Company's existing debt maturity schedule to ensure alignment with the swap's effective date (November 2020).
- Review the Company's most recent 10-Q or 10-K for current liquidity positions and total debt obligations not detailed in this 8-K.
- Monitor future filings for any amendments to the swap terms or early termination events.