Service Properties Trust Prices $800 Million of Senior Unsecured Notes

NEWTON, Mass.--(BUSINESS WIRE)-- Service Properties Trust (Nasdaq: SVC) today announced that it has priced an underwritten public offering of $800 million aggregate principal amount of 7.50% unsecured senior notes due 2025 guaranteed by certain of SVC’s subsidiaries. The settlement of this offering is expected to occur on June 17, 2020, subject to the satisfaction of customary closing conditions. SVC expects to use the net proceeds from this offering to repay amounts outstanding under its revolving credit facility.

The joint book-running managers for this offering were BofA Securities, Inc., Wells Fargo Securities, LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., PNC Capital Markets LLC and RBC Capital Markets, LLC. The joint lead managers for this offering were Mizuho Securities USA LLC, Regions Securities LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc. and U.S. Bancorp Investments, Inc. The co-managers for this offering were Barclays Capital Inc., FHN Financial Securities Corp., Morgan Stanley & Co. LLC and UBS Securities LLC.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction. SVC and the guarantors have filed a registration statement including a prospectus and will file a prospectus supplement with the Securities and Exchange Commission, or SEC, for the offering to which this communication relates. Before you invest, you should read the prospectus and prospectus supplement, when available, in that registration statement and other documents SVC has filed with the SEC for more complete information about SVC and the guarantors and this offering. You may obtain these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov. Copies of the prospectus supplement relating to this offering and the related prospectus may be obtained by calling BofA Securities, Inc. toll-free at 1-800-294-1322 or Wells Fargo Securities, LLC toll-free at 1-800-645-3751.

Service Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties across the United States and in Puerto Rico and Canada with 148 distinct brands across 23 industries. SVC’s properties are operated under long term management or lease agreements. SVC is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.

Warning Regarding Forward-Looking Statements

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever SVC uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, SVC is making forward-looking statements. These forward-looking statements are based upon SVC’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by SVC’s forward-looking statements as a result of various factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond SVC’s control. For example:

• This press release states that the settlement of the sale of the notes and related guarantees is expected to occur on June 17, 2020. The settlement of this offering is subject to various conditions and contingencies as are customary in underwriting agreements in the United States. If these conditions are not satisfied or the specified contingencies do not occur, this offering may not close.
• SVC’s current intent to use the net proceeds from the offering to repay amounts outstanding under its revolving credit facility is dependent on the closing of the offering and may not occur.

The information contained in SVC’s filings with the SEC including under “Risk Factors” in SVC’s periodic reports, or incorporated therein, identifies other important factors that could cause SVC’s actual results to differ materially from those stated in or implied by SVC’s forward-looking statements. SVC’s filings with the SEC are available on the SEC's website at www.sec.gov.

You should not place undue reliance upon forward-looking statements.

Except as required by law, SVC 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 Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

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Kristin Brown, Director, Investor Relations
(617) 796-8232

Source: Service Properties Trust