Business Context and Reporting Period
Company: Four Corners Property Trust, Inc. (FCPT)
Filing Type: Form 8-K (Current Report)
Date of Report: April 6, 2026
Event: Entry into a Material Definitive Agreement (Term Loan Facility)
Key Financial Metrics and Debt Structure
This filing details the establishment of a new senior unsecured delayed draw term loan facility. The filing does not provide current revenue, profit, cash flow, or margin data.
| Metric | Value |
|---|---|
| Total Facility Size | $200.0 million |
| Initial Funding (Closing Date) | $50.0 million |
| Accordion Capacity | Up to an additional $100.0 million |
| Maturity Date | April 6, 2033 |
| Interest Rate (SOFR Option) | SOFR + 1.15% to 2.20% (based on credit rating) |
| Interest Rate (Base Rate Option) | Base Rate + 0.15% to 1.20% (based on credit rating) |
| Unfunded Commitment Fee | 0.25% per annum (accrues after 90 days) |
| Prepayment Fee (Year 1) | 2.00% |
| Prepayment Fee (Year 2) | 1.00% |
Material Changes and Covenants
The primary material change is the creation of a new $200.0 million debt facility. The agreement includes specific financial covenants that the Borrower must maintain:
- Total Leverage Ratio: Not to exceed 60%
- Mortgage-Secured Leverage Ratio: Not to exceed 40%
- Fixed Charge Coverage Ratio: Minimum 1.50 to 1.00
- Unencumbered Leverage Ratio: Not to exceed 60%
- Unencumbered Interest Coverage Ratio: Minimum 1.75 to 1.00
The facility is guaranteed on a joint and several basis by Four Corners Property Trust, Inc. and Four Corners GP, LLC.
Outlook, Risks, and Contingencies
Management Commentary: Management indicated they will present an overview of the Term Loan Facility during upcoming investor presentations. The facility is designed to provide liquidity with a delayed draw structure, allowing the company to fund commitments as needed.
Risks and Contingencies:
- Default Consequences: Events of default include payment defaults, covenant breaches, and change of control. An event of default may limit distributions and trigger acceleration of repayment.
- Interest Rate Risk: Interest rates are variable, tied to SOFR or Base Rate plus a margin determined by the Company's credit rating.
- Prepayment Penalties: Significant fees apply to early repayment within the first two years.
Key Facts for Investor Verification
- Verify the Company's current credit rating to determine the specific applicable interest rate margin (1.15%-2.20% or 0.15%-1.20%).
- Confirm the Company's current leverage ratios to ensure compliance with the new 60% total leverage and 40% mortgage-secured leverage covenants.
- Review the "Investor Presentation" (Exhibit 99.2) for management's specific deployment strategy for the remaining $150.0 million of the facility.
- Monitor the Company's ability to maintain the minimum 1.50 fixed charge coverage ratio and 1.75 unencumbered interest coverage ratio.