NEWTON, Mass.--Hospitality Properties Trust (NYSE: HPT) today
announced that it has increased and extended the maturity of its
revolving bank credit facility. Prior to the changes, HPT's credit
facility permitted maximum borrowings of $350 million and had a maturity
of June 30, 2005. As a result of today's amendment, the maximum
borrowings are increased to $750 million, with a feature under which the
maximum borrowing may be expanded to up to $1.5 billion in certain
circumstances, and the maturity date is extended to June 30, 2009, with a
borrower's option to extend the facility for one year to June 30, 2010.
Several additional changes were made to terms of the facility.
Interest paid on drawings under the facility was reduced from LIBOR plus
135 basis points to LIBOR plus 80 basis points, subject to adjustments
based on changes to HPT's credit ratings. Certain financial and other
covenants in the facility were also amended to reflect current market
conditions.
Wachovia Securities and RBS Securities acted as Joint Lead Arrangers
for the increase and extension of the bank facility. As part of the
amendment to the facility, the number of participating banks increased
from 11 to 37 institutions. Banks participating in the amended credit
facility are as follows:
Name of Institution Facility Title
-------------------------- ----------------------
Wachovia Bank Administrative Agent
Royal Bank of Scotland Syndication Agent
RBC Capital Markets Documentation Agent
Calyon Documentation Agent
Sumitomo Mitsui Documentation Agent
Allied Irish Bank Senior Managing Agent
Societe Generale Senior Managing Agent
Emigrant Savings Bank Managing Agent
PNC Bank Managing Agent
Bank of Montreal Managing Agent
Mizuho Corporate Bank Managing Agent
United Overseas Bank Managing Agent
US Bank Managing Agent
Bank of China Lender
Wells Fargo Bank Lender
AmSouth Bank Lender
Bank of America Lender
Bank of New York Lender
Land Bank of Taiwan Lender
Merrill Lynch Lender
Morgan Stanley Lender
SunTrust Bank Lender
Bank of Taiwan Lender
Chang Hwa Commercial Bank Lender
E. Sun Bank Lender
ICBC Lender
Chiao Tung Lender
China Trust Lender
Bank Hapoalim Lender
Bank of Communications Lender
Citizens Bank Lender
Comerica Bank Lender
Farmers Bank of China Lender
First Hawaiian Bank Lender
Hua Nan Commercial Bank Lender
Taipei Bank Lender
First Commercial Bank Lender
Hospitality Properties Trust is a real estate investment trust, or
REIT, which owns 297 hotels located in 38 states, Puerto Rico and
Canada. HPT is headquartered in Newton, Massachusetts.
WARNING CONCERNING FORWARD LOOKING STATEMENTS
CERTAIN STATEMENTS CONTAINED IN THIS DOCUMENT ARE FORWARD LOOKING
STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995 AND FEDERAL SECURITIES LAWS. THESE INCLUDE STATEMENTS
REGARDING FUTURE AVAILABILITY OF BORROWINGS UNDER OUR REVOLVING CREDIT
FACILITY AND A FEATURE UNDER WHICH HPT MAY EXPAND THE MAXIMUM
AVAILABILITY UNDER THE CREDIT FACILITY. ACTUAL RESULTS MAY DIFFER
MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY THE FORWARD LOOKING
STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE, CONTINUED
AVAILABILITY OF BORROWINGS UNDER THE CREDIT FACILITY IS SUBJECT TO HPT'S
SATISFYING CERTAIN FINANCIAL COVENANTS AND MEETING OTHER CUSTOMARY
CONDITIONS, AND OUR INCREASING THE MAXIMUM AVAILABILITY IS ALSO SUBJECT
TO OBTAINING ADDITIONAL COMMITMENTS FROM LENDERS, WHICH COULD BE
IMPACTED BY CHANGES IN OUR FINANCIAL CONDITION, THE ECONOMY OR THE
CAPITAL MARKETS. MANY OF THESE FACTORS ARE BEYOND HPT'S CONTROL. FORWARD
LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR.
INVESTORS SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING
STATEMENTS. EXCEPT AS MAY BE REQUIRED BY LAW, HPT DOES NOT INTEND TO
IMPLY THAT IT WILL UPDATE OR REVISE ANY FORWARD LOOKING STATEMENTS AS A
RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.
Hospitality Properties Trust
Timothy A. Bonang
617-796-8149
www.hptreit.com