Four Corners Property Trust, Inc. 8-K

What Happened
Four Corners Property Trust, Inc. announced on April 6, 2026 that its subsidiary Four Corners Operating Partnership, LP entered into a Term Loan Agreement providing a $200.0 million senior unsecured delayed-draw term loan facility with Huntington National Bank as administrative agent and several banks as lenders. $50.0 million of the facility was funded on the closing date. The agreement includes a parent guaranty by Four Corners Property Trust, Inc. and Four Corners GP, LLC.

Key Details

• Facility size: $200.0 million initial aggregate principal; $50.0 million funded on April 6, 2026. Accordion feature allows up to an additional $100.0 million of incremental delayed-draw commitments (subject to lender consent).
• Interest: Borrower can choose (a) forward-looking term SOFR + margin (1.15%–2.20%) or (b) alternate base rate + margin (0.15%–1.20%); margin depends on the company’s unsecured long-term credit rating. Default interest is an extra 2.00%.
• Fees and prepayment: 0.25% per annum ticking fee on unfunded delayed-draw commitments starting on day 91 through one year after closing; prepayment fees of 2.00% if paid before 1 year, 1.00% if paid between years 1–2, and none thereafter. No amortization before maturity.
• Term and covenants: Maturity April 6, 2033. Financial covenants include total leverage ≤60%, mortgage-secured leverage ≤40%, fixed charge coverage ≥1.50x, unencumbered leverage ≤60%, and unencumbered interest coverage ≥1.75x. The loan is guaranteed jointly and severally by the parent and Four Corners GP, LLC. Events of default are customary and can limit distributions or accelerate repayment.

Why It Matters
This credit facility provides Four Corners with immediate liquidity ($50M funded) and access to additional committed capital, supporting its financing flexibility and operations. The facility is unsecured but includes financial covenants and a parent guaranty that could constrain future distributions, secured borrowings, or certain corporate transactions if covenant tests are not met. Investors should note the maturity (2033), interest-setting options tied to SOFR or base rates, and the potential to expand the facility by up to $100M subject to lender approvals.