v3.26.1
DEBT, NET OF DEFERRED FINANCING COSTS
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
DEBT, NET OF DEFERRED FINANCING COSTS

NOTE 6 – DEBT, NET OF DEFERRED FINANCING COSTS

At both June 30, 2026 and December 31, 2025, our debt consisted of (1) $640 million of non-amortizing term loans and (2) $625 million of senior, unsecured, fixed rate notes. At June 30, 2026 and December 31, 2025, respectively, we had no outstanding borrowings under the revolving credit facility, and there were no outstanding letters of credit. At June 30, 2026, we had $350 million of borrowing capacity under the revolving credit facility. The revolving credit facility will mature on February 1, 2029 with two six-month extension options. The weighted average interest rate on the term loans before consideration of the interest rate hedge described in Note 7 - Derivative Financial Instruments was 4.6% and 4.7% at June 30, 2026 and December 31, 2025, respectively.

Revolving Credit and Term Loan Agreement and Term Loan Facility

On January 31, 2025, the Company and its subsidiary, FCPT OP, entered into a Fourth Amended and Restated Revolving Credit and Term Loan Agreement with a group of existing lenders (the “2025 Credit Agreement”).

On August 19, 2025, the Company entered into Amendment No. 1 to the 2025 Credit Agreement which removed the credit spread adjustment applicable to the revolving credit and term loan agreement. Pursuant to the amendment, as of June 30, 2026, term loans under the 2025 Credit Agreement accrued interest at a per annum rate equal to a SOFR rate plus a margin of 0.95% to 1.00%, and the revolver accrued interest at a per annum rate equal to a margin of 0.85%. A facility fee at a rate of 0.20% per annum applied to the total revolving commitments available under the 2025 Credit Agreement.

The 2025 Credit Agreement contains customary events of default including, among other things, payment defaults, breach of covenants, cross default and cross acceleration to material recourse indebtedness, bankruptcy-related defaults, judgment defaults, and the occurrence of certain change of control events. The occurrence of an event of default will limit the ability of the Company and FCPT

OP to make distributions and may result in the termination of the credit facility, acceleration of repayment obligations and the exercise of remedies by the Lenders with respect to the collateral.

On April 6, 2026, the Company entered into a new $200 million senior unsecured delayed draw term loan facility (the "Term Loan Facility") with a group of existing lenders from its existing credit facility. The Term Loan Facility has a seven-year tenor and matures on April 6, 2033, and did not impact the Company's debt covenants. $50 million of the Term Loan Facility was drawn at close and was used to fund the Company’s immediate investment pipeline and other general corporate purposes.

 

The remaining $150 million of delayed draw term loan commitments under the Term Loan Facility were undrawn as of June 30, 2026 but were subsequently drawn to fund additional pipeline acquisitions in July. The Term Loan Facility contains a credit margin of 1.25% over SOFR as determined by FCPT's current investment grade ratings on its senior unsecured debt.

The following table presents the term loan balances under the 2025 Credit Agreement and the Term Loan Facility.

 

 

 

 

 

 

 

Outstanding Balance

 

(Dollars in thousands)

 

Maturity Date

 

Interest Rate (a)

 

 

June 30,
2026

 

 

December 31,
2025

 

Term Loans:

 

 

 

 

 

 

 

 

 

 

 

Term loan due 2026

 

Nov 2026

(b)

 

4.62

%

 

$

100,000

 

 

$

100,000

 

Term loan due 2027

 

Feb 2027

 

 

4.57

%

 

 

90,000

 

 

 

90,000

 

Term loan due 2027

 

Mar 2027

(b)

 

4.57

%

 

 

85,000

 

 

 

85,000

 

Term loan due 2028

 

Feb 2028

 

 

4.57

%

 

 

90,000

 

 

 

90,000

 

Term loan due 2029

 

Feb 2029

(b)

 

4.57

%

 

 

225,000

 

 

 

225,000

 

Term loan due 2033

 

Apr 2033

(c)

 

4.92

%

 

 

50,000

 

 

 

—

 

Total Term Loans

 

 

 

 

 

 

$

640,000

 

 

$

590,000

 

 

(a)
Loans reset at Daily Simple SOFR + the applicable credit spread of 0.95% to 1.25% at June 30, 2026.
(b)
Loan has one twelve month extension option exercisable at the Company's discretion, subject to certain conditions.
(c)
Total outstanding principal balance will be $200 million under the loan agreement once fully drawn.

Note Purchase Agreement

The following table presents the senior unsecured fixed rate notes balance.

 

 

 

 

 

 

 

Outstanding Balance

 

(Dollars in thousands)

 

Maturity
Date

 

Interest
Rate

 

 

June 30,
2026

 

 

December 31,
2025

 

Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

Senior unsecured fixed rate note, issued December 2018

 

Dec 2026

 

 

4.63

%

 

$

50,000

 

 

$

50,000

 

Senior unsecured fixed rate note, issued June 2017

 

Jun 2027

 

 

4.93

%

 

 

75,000

 

 

 

75,000

 

Senior unsecured fixed rate note, issued December 2018

 

Dec 2028

 

 

4.76

%

 

 

50,000

 

 

 

50,000

 

Senior unsecured fixed rate note, issued April 2021

 

Apr 2029

 

 

2.74

%

 

 

50,000

 

 

 

50,000

 

Senior unsecured fixed rate note, issued March 2020

 

Jun 2029

 

 

3.15

%

 

 

50,000

 

 

 

50,000

 

Senior unsecured fixed rate note, issued March 2020

 

Apr 2030

 

 

3.20

%

 

 

75,000

 

 

 

75,000

 

Senior unsecured fixed rate note, issued March 2022

 

Mar 2031

 

 

3.09

%

 

 

50,000

 

 

 

50,000

 

Senior unsecured fixed rate note, issued April 2021

 

Apr 2031

 

 

2.99

%

 

 

50,000

 

 

 

50,000

 

Senior unsecured fixed rate note, issued March 2022

 

Mar 2032

 

 

3.11

%

 

 

75,000

 

 

 

75,000

 

Senior unsecured fixed rate note, issued July 2023

 

Jul 2033

 

 

6.44

%

 

 

100,000

 

 

 

100,000

 

Total Notes

 

 

 

 

 

 

$

625,000

 

 

$

625,000

 

 

 

Debt Maturities

The following table presents scheduled principal payments related to the Company’s debt.

 

(In thousands)

 

June 30,

 

Remainder of 2026(a)

 

$

150,000

 

2027(a)

 

 

250,000

 

2028

 

 

140,000

 

2029

 

 

325,000

 

2030

 

 

75,000

 

Thereafter

 

 

325,000

 

Total Scheduled Principal Payments

 

$

1,265,000

 

 

(a) As of July 30, 2026, the $100 million term loan due November 2026 and the $90 million term loan due February 2027 have been repaid in full. See Note 14 - Subsequent Events for additional information.

Deferred Financing Costs

At June 30, 2026 and December 31, 2025, term loan and revolving credit facility net unamortized deferred financing costs were approximately $9.3 million and $8.1 million, respectively. During the three months ended June 30, 2026 and 2025, amortization of deferred financing costs was $0.7 million and $0.6 million, respectively. During the six months ended June 30, 2026 and 2025, amortization of deferred financing costs was $1.4 million and $1.2 million, respectively.

At June 30, 2026 and December 31, 2025, senior unsecured notes net unamortized deferred financing costs were approximately $2.4 million and $2.7 million, respectively. During the three months ended June 30, 2026 and 2025, amortization of deferred financing costs was $0.2 million and $0.2 million, respectively. During the six months ended June 30, 2026 and 2025, amortization of deferred financing costs was $0.3 million and $0.3 million, respectively.

The Company was in compliance with all debt covenants at June 30, 2026 and December 31, 2025.