NEWTON, Mass.--(BUSINESS WIRE)--
Hospitality Properties Trust (NYSE: HPT) today announced the closing of
a new five year $400 million unsecured term loan. The loan matures on
March 12, 2017, and is prepayable, without penalty, at any time. Terms
of the new loan include interest at LIBOR plus 145 basis points, subject
to adjustments based on changes to HPT's credit ratings. HPT expects to
use the net proceeds of the term loan to repay amounts outstanding under
its $750 million revolving credit facility, repurchase its 3.80%
Convertible Senior Notes due 2027 which are tendered by the holders
thereof for repurchase by HPT on their March 20, 2012 repurchase date,
redeem its 6.85% Senior Notes due 2012 as described below, and for
general business purposes.
Wells Fargo Securities, LLC, PNC Capital Markets, LLC and RBC Capital
Markets, LLC served as Joint Lead Arrangers for the term loan, and banks
participating in the new loan are as follows:
Name of Institution
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Title
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Wells Fargo Bank, National Association
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Administrative Agent
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PNC Bank, National Association
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Syndication Agent
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Royal Bank of Canada
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Syndication Agent
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Regions Bank
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Documentation Agent
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Sovereign Bank, N.A.
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Participant
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RBS Citizens, N.A.
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Participant
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The Bank of New York Mellon
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Participant
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Bank of America, N.A.
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Participant
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Citibank, N.A.
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Participant
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UBS Loan Finance LLC
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Participant
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E. Sun Commercial Bank, Ltd., Los Angeles Branch
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Participant
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Land Bank of Taiwan, Los Angeles Branch
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Participant
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Taiwan Cooperative Bank, Los Angeles Branch
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Participant
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Bank of Taiwan, Los Angeles Branch
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Participant
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HPT today also announced that it will redeem all of its outstanding
6.85% Senior Notes due 2012 at a redemption price equal to the principal
amount of $100,829,000, plus accrued and unpaid interest to the date of
redemption. This redemption is expected to occur on April 11, 2012. HPT
expects to fund this redemption from proceeds of the $400 million term
loan.
Hospitality Properties Trust is a real estate investment trust, or REIT,
which owns 290 hotels and 185 travel centers located in 44 states,
Puerto Rico and Canada. HPT is headquartered in Newton, Massachusetts.
WARNING CONCERNING FORWARD LOOKING STATEMENTS
CERTAIN STATEMENTS CONTAINED IN THIS PRESS RELEASE ARE FORWARD LOOKING
STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995 AND FEDERAL SECURITIES LAWS. THESE INCLUDE STATEMENTS
REGARDING THE INTEREST PAID UNDER THE TERM LOAN AND ITS INTENDED
APPLICATION OF NET PROCEEDS. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM
THOSE CONTAINED IN OR IMPLIED BY THESE FORWARD LOOKING STATEMENTS AS A
RESULT OF VARIOUS FACTORS AND SOME OF THESE FACTORS ARE BEYOND HPT'S
CONTROL. FORWARD LOOKING STATEMENTS AND THEIR IMPLICATIONS ARE NOT
GUARANTEED TO OCCUR AND MAY NOT OCCUR. YOU SHOULD NOT PLACE UNDUE
RELIANCE UPON HPT'S FORWARD LOOKING STATEMENTS. EXCEPT AS MAY BE
REQUIRED BY LAW, HPT DOES NOT INTEND TO UPDATE OR CHANGE ANY FORWARD
LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR
OTHERWISE.
A Maryland Real Estate Investment Trust with transferable shares of
beneficial interest listed on the New York Stock Exchange.
No
shareholder, Trustee or officer is personally liable for any act or
obligation of the Trust.
Hospitality Properties Trust
Timothy A. Bonang, 617-796-8232
Vice
President, Investor Relations
or
Carlynn Finn, 617-796-8232
Senior
Manager, Investor Relations.
www.hptreit.com