Fundamental Income Announces Closing of $328.9 Million Securitization

Rhea-AI Summary

Fundamental Income Properties has launched its inaugural structured debt financing program with the issuance of $328.9 million in long-term, fixed-rate notes. The notes, rated ‘AA’ and ‘A’ by S&P, were offered to institutional investors as part of the FI Master Trust program. Since its inception in April 2020, the company has acquired over $1.2 billion in single-tenant properties. This program aims to enhance access to affordable debt capital, supporting clients in M&A and expansion initiatives. The notes are exempt from standard registration, sold under Rule 144A in the U.S. and Regulation S internationally.

Positive

• Issuance of $328.9 million long-term, fixed-rate notes indicates strong demand and confidence in the company.
• Notes rated ‘AA’ and ‘A’ by S&P reflects high credit quality and investor confidence.
• Launch of the FI Master Trust program enhances access to reliable, attractively priced debt capital.

Negative

• None.

Launch of Dedicated Structured Debt Financing Program Reflects Portfolio Strength

PHOENIX--(BUSINESS WIRE)-- Fundamental Income Properties (“Fundamental Income” or the “Company”), a Phoenix-based net lease real estate company that has acquired and financed over $1.2 billion of single-tenant properties across 40 states and 39 industries since 2020, today announced the issuance of $328.9 million of long-term, fixed-rate notes designated as Fundamental Income Net-Lease Mortgage Notes, Series 2023-1. This is the inaugural note issuance under Fundamental Income’s dedicated structured debt financing vehicle, FI Master Trust. Fundamental Income was founded in April 2020 with an initial equity commitment from Brookfield Asset Management (NYSE: BAM), a global asset manager with approximately $800 billion in assets under management.

The notes were issued in a private placement to premier institutional investors in two classes including $182.2 million of 5-year Class A-1 notes rated ‘AA’ by Standard & Poor’s Ratings Services (S&P) and $146.7 million of 5-year Class A-2 notes rated ‘A’ by S&P.

“We are excited to announce the launch and inaugural note issuance under our FI Master Trust program,” said Chris Burbach, Chief Executive Officer of Fundamental Income. “This program lays the foundation for ongoing access to reliable, attractively priced debt capital to better support our clients’ financing needs. We are grateful for the support we received from institutional debt investors, which is a testament to the high-quality portfolio we are building and the strength of our team.”

Fundamental Income’s leadership team has extensive experience in net lease real estate financing, credit and capital markets across market cycles. “Leveraging this experience, we provide our clients with predictable capital and certainty of execution even in times of challenging economic and market conditions,” said Alexi Panagiotakopoulos, Chief Investment Officer of Fundamental Income. “The capital we provide our clients, who form the backbone of the U.S. economy, allows them to grow their businesses through strategic M&A transactions, expand into new markets, and build new facilities.”

The notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. The notes were offered and will be sold in the United States in accordance with Rule 144A under the Securities Act and outside the United States in accordance with Regulation S under the Securities Act.

This press release does not constitute an offer to sell or the solicitation of any offer to buy the notes described herein nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

ABOUT FUNDAMENTAL INCOME

Fundamental Income Properties is a Phoenix-based net lease real estate company backed by Brookfield Asset Management (NYSE: BAM). Fundamental Income Properties serves as a dedicated real estate capital partner to businesses and business owners across North America providing companies with accretive, predictable capital through sale leasebacks, build-to-suit financing and 100 percent financing for expansion capital for operating companies with establish and growing operations. Led by seven investment partners with over 60 years and $16 billion of cumulative transaction history, the Company is focused on investing in single-tenant commercial properties, net leased to middle-market businesses operating in a wide variety of industries that directly or indirectly serve the US consumer. For more information, please visit www.fundamentalincome.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230323005679/en/

Financial Profiles, Inc.

Jon Ruzan

(310) 622-8227

jruzan@finprofiles.com

Source: Fundamental Income Properties

FAQ

What is the significance of Fundamental Income Properties' $328.9 million note issuance on March 23, 2023?

The issuance reflects strong institutional investor confidence and marks the launch of Fundamental Income's structured debt financing program.

How does the FI Master Trust benefit Fundamental Income Properties and its clients?

The FI Master Trust provides ongoing access to reliable debt capital, supporting client financing needs for growth and expansion.

What ratings did the notes issued by Fundamental Income Properties receive from S&P?

The notes received ratings of ‘AA’ for Class A-1 and ‘A’ for Class A-2 from Standard & Poor’s.

When was Fundamental Income Properties founded and who is its main investor?

Fundamental Income Properties was founded in April 2020, with initial equity from Brookfield Asset Management (NYSE: BAM).

Under which regulations were the notes offered for sale?

The notes were offered under Rule 144A in the U.S. and Regulation S internationally.