DEBT, NET OF DEFERRED FINANCING COSTS

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

DEBT, NET OF DEFERRED FINANCING COSTS

NOTE 6 – DEBT, NET OF DEFERRED FINANCING COSTS

At June 30, 2024, our debt consisted of (1) $515 million of non-amortizing term loans and (2) $625 million of senior, unsecured, fixed rate notes. At December 31, 2023, our debt consisted of (1) $430 million of non-amortizing term loans and (2) $675 million of

senior, unsecured, fixed rate notes. At June 30, 2024 and December 31, 2023, we had outstanding borrowings of $27 million and $16 million, respectively, under the revolving credit facility, and there were no outstanding letters of credit. At June 30, 2024, we had $223 million of borrowing capacity under the revolving credit facility. The revolving credit facility will mature on November 9, 2025 with a six month extension option. The weighted average interest rate on the term loans before consideration of the interest rate hedge described in Note 7 - Derivative Financial Instruments was 6.39% and 6.40% at June 30, 2024 and December 31, 2023, respectively. The weighted average interest rate on the revolving credit facility was 6.46% at June 30, 2024.

Revolving Credit and Term Loan Agreement

On March 14, 2024, FCPT entered into an Incremental Amendment to the Third Amended and Restated Revolving Credit and Term Loan Agreement with a group of existing lenders (the “Credit Agreement”). The Company utilized the accordion feature of the Third Amended and Restated Revolving Credit and Term Loan Agreement to enter into a new $85 million term loan (the “Term Loan”), the proceeds from which were used to repay the $50 million of senior unsecured notes payable due in June 2024. The Term Loan matures in March 2027 with one twelve month extension exercisable at the Company’s option, subject to certain conditions.

The following table presents the Term Loan balances.

						Outstanding Balance
(Dollars in thousands)	Maturity Date	Interest Rate				June 30, 2024		December 31, 2023
Term Loans:
Term loan due 2025	Nov 2025		6.42	%	(a)		150,000		150,000
Term loan due 2026	Nov 2026		6.42	%	(a)		100,000		100,000
Term loan due 2027	Jan 2027		6.37	%	(a)		90,000		90,000
Term loan due 2027	Mar 2027		6.37	%	(a)(b)		85,000		—
Term loan due 2028	Jan 2028		6.37	%	(a)		90,000		90,000
Total Term Loans						$	515,000	$	430,000

(a)Loan is a variable‑rate loan which resets at Daily Simple SOFR + the applicable credit spread of 0.95% to 1.00% at June 30, 2024.

(b)Loan has a 12 month extension exercisable at the Company's option, subject to certain conditions.

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, 2024		December 31, 2023
Notes Payable:
Senior unsecured fixed rate note, issued June 2017	Jun 2024		4.68	%	$	—	$	50,000
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	$	675,000

Debt Maturities

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

(In thousands)	June 30,
Remainder of 2024	$	—
2025		177,000
2026		150,000
2027		250,000
2028		140,000
Thereafter		450,000
Total Scheduled Principal Payments	$	1,167,000

Deferred Financing Costs

At June 30, 2024 and December 31, 2023, term loan and revolving credit facility net unamortized deferred financing costs were approximately $4.7 million and $4.3 million, respectively. During the three months ended June 30, 2024 and 2023, amortization of deferred financing costs was $490 thousand and $403 thousand, respectively. During the six months ended June 30, 2024 and 2023, amortization of deferred financing costs was $922 thousand and $805 thousand, respectively.

At June 30, 2024 and December 31, 2023, senior unsecured notes net unamortized deferred financing costs were approximately $3.7 million and $4.1 million, respectively. During the three months ended June 30, 2024 and 2023, amortization of deferred financing costs was $163 thousand and $161 thousand, respectively. During the six months ended June 30, 2024 and 2023, amortization of deferred financing costs was $369 thousand and $323 thousand, respectively.

The Company was in compliance with all debt covenants at June 30, 2024 and December 31, 2023.