Hospitality Properties Trust Prices $1.70 Billion of Unsecured Senior Notes
September 10 2019 - 5:03PM
Business Wire
Hospitality Properties Trust (Nasdaq: HPT) today announced that
it has priced underwritten public offerings of $825 million
aggregate principal amount of 4.350% unsecured senior notes due
2024, $450 million aggregate principal amount of 4.750% unsecured
senior notes due 2026 and $425 million aggregate principal amount
of 4.950% unsecured senior notes due 2029. The settlement of the
offerings is expected to occur on September 18, 2019, subject to
the satisfaction of customary closing conditions.
HPT expects to use the net proceeds from these offerings to
finance, in part, its previously announced transaction with Spirit
MTA REIT (NYSE: SMTA). Pending the consummation of the SMTA
transaction and the use of proceeds described in the prior
sentence, HPT may repay future amounts outstanding under its
revolving credit facility or use the net proceeds for general
business purposes, or HPT may invest the net proceeds in short term
investments.
The joint book-running managers for these offerings were BofA
Securities, Inc., Citigroup Global Markets Inc., Morgan Stanley
& Co. LLC, RBC Capital Markets, LLC and Wells Fargo Securities,
LLC. The joint lead managers for these offerings were BMO Capital
Markets Corp., Regions Securities LLC, SMBC Nikko Securities
America, Inc., UBS Securities LLC and U.S. Bancorp Investments,
Inc. The co-managers for these offerings were Samuel A. Ramirez
& Company, 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: BofA Securities, Inc., NC1-004-03-43, 200 North
College Street, 3rd Floor, Charlotte, NC 28255-001, Attn:
Prospectus Department, or by email at
dg.prospectus_requests@baml.com, telephone (800) 294-1322;
Citigroup Global Markets Inc., c/o Broadridge Financial Solutions,
1155 Long Island Avenue, Edgewood, NY 11717 or by calling (800)
831-9146 or by email at prospectus@citi.com; Morgan Stanley &
Co. LLC, at 180 Varick Street, 2nd Floor, New York, NY 10014,
Attention: Prospectus Department, by telephone at (866) 718-1649 or
by emailing prospectus@morganstanley.com; RBC Capital Markets, LLC,
Brookfield Place, 200 Vesey Street, 8th Floor, New York, NY 10281,
Attention: DCM Transaction Management, or by calling toll free at
(866) 375-6829; or Wells Fargo Securities, LLC, Attn: WFS Customer
Service, 608 2nd Ave S, Suite 1000, Minneapolis, MN 55402 or by
telephone at (800) 645-3751, or by email at
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, Washington, DC, 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 statements that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and other securities laws.
Also, whenever we use words such as "believe", "expect",
"anticipate", "intend", "plan", "estimate", "will", "may" and
negatives or derivatives of these or similar expressions, HPT is
making forward-looking statements. These forward-looking statements
are based upon HPT’s present intent, beliefs or expectations, but
forward-looking statements are not guaranteed to occur and may not
occur for various reasons, some of which are beyond HPT’s control.
For example:
- This press release states that the closing of the notes
offerings is expected to occur on September 18, 2019. The closing
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.
- HPT’s current intent is to use the proceeds from the offerings
of the notes to finance, in part, the SMTA transaction, and,
pending the consummation of the SMTA transaction and such use of
proceeds, HPT may repay future amounts outstanding under its
revolving credit facility or use the net proceeds for general
business purposes, or HPT may invest the net proceeds from these
offerings in short term investments, some or all of which may not
be investment grade rated; the receipt and use of the proceeds is
dependent on the closing of these offerings and may not occur;
further the SMTA transaction is subject to certain customary
conditions and HPT cannot be sure that such conditions will be
satisfied. Accordingly, the SMTA transaction may not close or the
terms of the SMTA transaction may change.
For these reasons, among others, investors are cautioned not to
place undue reliance upon forward-looking statements.
The information contained in HPT’s filings with the Securities
and Exchange Commission, or SEC, including under “Risk Factors” in
HPT’s periodic reports, or incorporated therein identifies other
important factors that could cause HPT’s actual results to differ
materially from those in its forward-looking statements. HPT’s
filings with the SEC are available on the SEC’s website at
www.sec.gov.
Except as 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 Nasdaq. No
shareholder, Trustee or officer is personally liable for any act or
obligation of the Trust.
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version on businesswire.com: https://www.businesswire.com/news/home/20190910006129/en/
Katie Strohacker, Senior Director, Investor Relations (617)
796-8232 www.hptreit.com
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