Business Context and Reporting Period
This Form 8-K was filed by Four Corners Property Trust, Inc. on July 12, 2017. The report details a specific corporate event regarding the Company's operating partnership, Four Corners Operating Partnership, LP.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or overall debt levels. It specifically discloses the execution of two interest rate swap agreements with J.P. Morgan Chase Bank, N.A. to hedge variable rate debt:
- Swap 1: $100.0 million notional value; Fixed rate paid of 1.960%; Effective date November 9, 2018; Maturity date November 9, 2021.
- Swap 2: $100.0 million notional value; Fixed rate paid of 2.302%; Effective date November 9, 2020; Maturity date November 9, 2023.
Both swaps involve receiving a variable rate resetting monthly to the one-month LIBOR rate.
Material Changes
The filing reports the entry into new derivative contracts. There is no comparative financial data provided in this document to assess changes in revenue, earnings, or liquidity versus prior periods.
Outlook, Risks, and Management Commentary
Management states these hedging agreements were entered into to mitigate interest rate risk inherent in the Company's variable rate debt. The filing explicitly notes that these instruments are not for trading purposes. No forward-looking guidance or other risk factors are disclosed in this specific report.
Investor Verification Checklist
- Verify the total outstanding variable rate debt to assess the proportion covered by these new $200 million in swaps.
- Review the Company's most recent 10-Q or 10-K for current liquidity positions and existing debt maturity schedules.
- Confirm the impact of the fixed rates (1.960% and 2.302%) on future interest expense projections.