STORE Capital closes $567M securitisation at 5.28%, cuts borrowing costs
What's the deal? STORE CapitalDealroom has a profile for this one. Try Dealroom → has completed a $567 million long-term fixed-rate securitisation — its fifteenth under the company's proprietary Master Funding debt programme. The net-lease REIT issued four classes of notes to institutional investors via private placement, with an overall weighted average interest rate of 5.28% and a weighted average life of 6.32 years.
Of the total, $486 million received AAA ratings from S&P Global RatingsDealroom has a profile for this one. Try Dealroom →, while an additional $81 million were rated AA. Proceeds were used to redeem $520.3 million of previously issued notes that carried a 6.44% coupon rate ahead of their May 2028 maturity, with the remainder earmarked for growth.
Why now? The refinancing swaps a 6.44% coupon for a 5.28% weighted average rate — a 116 basis-point reduction that STORE Capital said will generate "substantial interest savings" over the next few years. The offering was significantly oversubscribed, allowing the company to increase the transaction size by more than 60%.
"We are very grateful for the continued overwhelming interest in STORE's Master Funding bonds," said Mary Fedewa, president and chief executive officer.
What could go wrong? The notes were issued under Rule 144A and are not registered under the Securities Act, limiting them to qualified institutional buyers. STORE Capital owns more than 3,500 single-tenant properties across the US — a portfolio that remains exposed to tenant credit risk and broader commercial real estate headwinds.
Rising vacancy rates or tenant defaults in the middle-market segment could pressure the steady cash flows that underpin the securitisation structure.
The signal: A 60%-plus upsizing on a net-lease securitisation, at a time when commercial real estate debt markets remain uneven, underscores institutional confidence in granular, middle-market collateral pools — the niche STORE Capital has built its entire financing programme around. The 116 basis-point saving also shows that seasoned, repeat issuers with predictable cash flows can still exploit rate windows to meaningfully cut borrowing costs, even before existing notes mature.
Read more: pulse2.com
