Spirit MTA to redeem master trust 2014 notes with sale proceeds

By Sarah Lizee

Olympia, Wash., June 3 – Spirit MTA REIT plans to redeem all of its notes collateralized by assets of the owned properties held in the company’s master trust 2014, which are being sold to Hospitality Properties Trust, according to a press release.

As of March 31, the balance of the trust notes was about $1.93 billion.

The transaction is structured so that Hospitality Properties will pay $2.4 billion in cash for the portfolio to Spirit MTA, which Spirit MTA will use for the redemption.

Under the terms of the transaction, Hospitality Properties will also pay to Spirit MTA the make-whole amounts payable in connection with the redemption. The make-whole amount is estimated at $72 million, assuming a closing during the third quarter, but it is subject to change primarily based on the applicable U.S. Treasury rates at the time of redemption.

The acquisition is subject to approval by Spirit MTA shareholders and other customary conditions and is expected to close in the third quarter of 2019.

Spirit MTA is a Dallas-based net-lease real estate investment trust. Hospitality Properties is a REIT based in Newton, Mass.

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