SCOTTSDALE, AZ—Net lease REIT SpiritRealty Capital said Monday it had closed a $510-millionsale of mortgage notes through a private offeringfrom indirectly owned subsidiaries, via SRC's Spirit Master Fundingsecuritization program. The notes were issued as two classes, bothrated A+ by Standard & Poor's, and have a blended coupon rateof 4.4230% with a weighted average life of 9.4 years.

SRC subsidiaries Spirit Master Funding LLC, Spirit MasterFunding II LLC, Spirit Master Funding III LLC, Spirit MasterFunding VI LLC and Spirit Master Funding VIII LLC are the issuersof the notes, which are payable solely from their assets. TheREIT plans to use proceeds from the offering torepay borrowings under its revolving line of credit, to fundfourth-quarter acquisitions and for general corporate purposes.

“We are pleased with the pricing and execution of thisinvestment-grade issuance,” says chairman and CEO Thomas H.Nolan Jr. “Our Master Funding program continues to provideus with an efficient platform to lock in attractively priced,fixed-rate capital to match fund our acquisitions of operationallyessential real estate net leased to quality, middle marketcompanies.”