Service Properties Trust to sell $800 million eight-year notes; initial talk low-to-mid 9% area

By Paul A. Harris

Portland, Ore., Nov. 8 – Service Properties Trust (SVC) plans too price an $800 million offering of senior secured notes due 2031 (BB) on Thursday, according to market sources.

The deal, which was set to kick off on a Wednesday morning conference call with investors, is in the market with initial guidance in the low-to-mid 9% area, according to a trader, who added that the offering is in the market with $1.1 billion of reverse inquiry in the high-9% area and $800 million of reverse inquiry in the low-to-mid 9% area.

The Rule 144A and Regulation S for life eight-year notes become subject to an initial call after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback at par plus the full coupon.

Goldman Sachs & Co. LLC is the left bookrunner. Wells Fargo Securities LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC and UBS Securities LLC are the joint bookrunners.

The Newton, Mass.-based real estate investment trust plans to use the proceed plus cash on hand to fully redeem its outstanding 4.65% senior notes due 2024 and its 4.35% senior notes due 2024.

SVC is invested in hotels and service-focused retail net lease properties.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.