SFC Spirit Fin Corp

Spirit Finance Corporation (NYSE: SFC), a real estate investment trust (REIT) focused on single tenant, operationally essential real estate, announced the private placement on March 17, 2006 of $301.8 million aggregate principal amount of Net-Lease Mortgage Notes, Series 2006-1, the second issuance under the Company's master funding structure which was created in 2005. The notes are rated AAA/Aaa by Standard & Poor's Ratings Services and Moody's Investors Service, Inc., respectively. This private placement consists of amortizing notes bearing interest at an annual rate of 5.76% due in 2021, which are guaranteed as to timely payment of scheduled interest and ultimate payment of principal under an insurance policy issued by Ambac Assurance Corporation. Citigroup and Credit Suisse served as joint lead managers, with Citigroup also serving as structuring agent for the transaction. Spirit's master funding program is a unique method of financing real estate assets, as it is not only a means of pooling a large number of diverse assets and borrowing against the collective whole, but also allows for the flexibility of adding new assets to the existing pool over time. The Company's first series of notes involved the issuance in July 2005 of $441.3 million of Net-Lease Mortgage Notes secured by an initial collateral pool of approximately $640 million in real estate assets. After completion of this second debt issuance on March 17, 2006, the collateral pool securing the two outstanding note series is now in excess of $1 billion in real estate assets representing 578 commercial properties. The Company plans to use the net proceeds from the sale of the Series 2006-1 notes to pay down borrowings under existing secured credit facilities and to provide funds for future real estate acquisitions. Mr. Christopher Volk, President and Chief Executive Officer, stated, "With the completion of our second master funding debt issuance, the Spirit Master Funding program is well on its way to being what we envisioned: an innovative and highly efficient means of locking in long-term investment spreads with enhanced financial flexibility for the Company and for our customers. Our master funding collateral pool is now more than 65% larger than the initial pool, providing further investment diversity. Under this program, we have match-funded the Company's cash flows for the next fifteen years on a large portion of our real estate assets." This news release does not constitute an offer to sell or the solicitation of an offer to buy any of these securities. The securities offered and sold have not been registered under the Securities Act, or any state securities laws. Unless so registered, the notes may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws. About Spirit Finance Corporation Spirit Finance Corporation provides customized, flexible sale/leaseback financing solutions for single tenant, operationally essential real estate assets that are vital to the operations of retail, service and distribution companies. The Company's core markets include free-standing automotive, drugstores, educational facilities, movie theatres, restaurants, supermarkets, and other retail, distribution and service businesses. Additional information about Spirit Finance Corporation is available on the Company's website at www.spiritfinance.com. Forward-Looking and Cautionary Statements Statements contained in this press release which are not historical facts are forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of words such as "expects," "plans," "estimates," "projects," "intends," "believes," "guidance," and similar expressions that do not relate to historical matters. These forward-looking statements are subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated, due to a number of factors, which include, but are not limited to, continued ability to source new investments, changes in interest rates and/or credit spreads, changes in the real estate markets, and other risk factors discussed in Spirit Finance Corporation's Annual Report on Form 10-K and other documents filed by the Company with the Securities and Exchange Commission from time to time. All forward-looking statements in this press release are made as of today, based upon information known to management as of the date hereof, and the Company assumes no obligations to update or revise any of its forward-looking statements even if experience or future changes show that indicated results or events will not be realized.