Hospitality Properties talks minimum $250 million of 10-year senior notes Thursday

By Andrea Heisinger

New York, May 30 - Hospitality Properties Trust is in the market Thursday with an offering of senior notes due June 15, 2023 (Baa2/BBB-/) totaling between $250 million and $250 million, according to an informed source and a 424B5 filing with the Securities and Exchange Commission.

Price guidance at midday was in the 250 basis points over Treasuries area.

There will be a make-whole call at an undisclosed spread over Treasuries until Dec. 15, 2022 and a par call after that date.

Bookrunners are BofA Merrill Lynch, Citigroup Global Markets Inc., UBS Securities LLC and Wells Fargo Securities LLC.

Proceeds will be used to repay amounts outstanding under a revolving credit facility, to redeem some or all outstanding 7% series C cumulative redeemable preferred shares and for general corporate purposes, possibly including funding hotel renovations or rebranding costs and potential future acquisitions.

Hospitality Properties last tapped the U.S. bond market in a $500 million sale of 5% 10-year notes priced at 355 bps over Treasuries on Aug. 9, 2012.

The real estate investment trust for hotels and travel centers is based in Newton, Mass.

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