NEWTON, Mass.--(BUSINESS WIRE)--
Hospitality Properties Trust (Nasdaq: HPT) today announced that is has
priced underwritten public offerings of $200 million of 4.50% unsecured
senior notes due June 15, 2023, or the 2023 senior notes, and $400
million of 4.95% unsecured senior notes due February 15, 2027. The 2023
senior notes are a further issuance of HPT’s existing unsecured senior
notes due June 15, 2023 issued on June 6, 2013. The settlements of these
offerings are expected to occur on January 13, 2017, subject to
customary closing conditions.
HPT expects to use the net proceeds from these offerings
to repay amounts outstanding under its unsecured revolving credit
facility, for general business purposes and possibly to redeem some or
all of its outstanding 7.125% series D cumulative redeemable preferred
shares of beneficial interest with an aggregate liquidation preference
of approximately $290.0 million.
The joint book-running managers for these offerings were Citigroup
Global Markets Inc., RBC Capital Markets, LLC, UBS Securities LLC, Wells
Fargo Securities, LLC, BBVA Securities Inc., Mizuho Securities USA Inc.,
PNC Capital Markets LLC, Regions Securities LLC and U.S. Bancorp
Investments, Inc. The joint lead managers for these offerings were
Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley &
Co. LLC. The co-managers for these offerings were BB&T Capital Markets,
a division of BB&T Securities, LLC, SMBC Nikko Securities America, Inc.,
Fifth Third Securities, Inc. and FTN Financial Securities Corp.
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. Copies of the
prospectus supplement relating to these offerings and the related
prospectus may be obtained by contacting the offices of: Citigroup
Global Markets Inc. c/o Broadridge Financial Solutions, 1155 Long Island
Avenue, Edgewood, NY 11717, telephone: (800) 831-9146; RBC Capital
Markets, LLC, Three World Financial Center, 200 Vesey Street, New York,
NY 10281, Attention: Debt Capital Markets, telephone: (866) 375-6829 or
email: usdebtcapitalmarkets@rbccm.com;
UBS Securities LLC, Attn: Prospectus Department, 1285 Avenue of the
Americas, New York, NY 10019, Attention: Prospectus Department,
telephone: (888) 827-7275; and Wells Fargo Securities, LLC, 608 2nd
Avenue South, Suite 1000, Minneapolis, Minnesota 55402, Attention: WFS
Customer Service, telephone: (800) 645-3751 or email: wfscustomerservice@wellsfargo.com.
Hospitality Properties Trust is a real estate investment trust, or REIT,
which owns a diverse portfolio of hotels and travel centers located in
45 states, Puerto Rico and Canada. HPT's properties are operated under
long term management or lease agreements. HPT 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 FORWARD LOOKING STATEMENTS WITHIN THE
MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND
OTHER SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON
HPT'S PRESENT BELIEFS AND EXPECTATIONS, BUT THESE STATEMENTS ARE NOT
GUARANTEED. FOR EXAMPLE:
-
THIS PRESS RELEASE STATES THAT THE SETTLEMENT OF THE SALE OF SENIOR
NOTES IS EXPECTED TO OCCUR ON JANUARY 13, 2017. THE SETTLEMENT OF
THESE OFFERINGS 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, THESE OFFERINGS MAY NOT CLOSE.
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HPT'S CURRENT INTENT TO USE THE NET PROCEEDS FROM THESE OFFERINGS TO
REPAY AMOUNTS OUTSTANDING UNDER ITS UNSECURED REVOLVING CREDIT
FACILITY, FOR GENERAL BUSINESS PURPOSES AND POSSIBLY TO REDEEM SOME OR
ALL OF ITS OUTSTANDING 7.125% SERIES D CUMULATIVE REDEEMABLE PREFERRED
SHARES OF BENEFICIAL INTEREST IS DEPENDENT ON THE CLOSING OF THESE
OFFERINGS AND MAY NOT OCCUR.
FOR THESE REASONS, AMONG OTHERS, INVESTORS ARE CAUTIONED NOT TO PLACE
UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.
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Source: Hospitality Properties Trust