New Issue: Hospitality Properties sells $300 million 4.5% 10-year notes at 240 bps spread

By Andrea Heisinger

New York, May 30 - Hospitality Properties Trust priced $300 million of 4.5% 10-year senior notes (Baa2/BBB-/) on Thursday at a spread of 240 basis points over Treasuries, according to an informed source and an FWP filing with the Securities and Exchange Commission.

Price guidance at midday was in the 250 bps over Treasuries area. The size was planned in the $250 million to $350 million range.

Pricing was at 99.887 to yield 4.514%.

There is a make-whole call at 35 bps over Treasuries until Dec. 15, 2022 and a par call after that date.

Bookrunners were 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 stock 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.

Issuer:	Hospitality Properties Trust
Issue:	Senior notes
Amount:	$300 million
Maturity:	June 15, 2023
Bookrunners:	BofA Merrill Lynch, Citigroup Global Markets Inc., UBS Securities LLC, Wells Fargo Securities LLC
Joint lead managers:	BBVA Securities Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets LLC, Regions Securities LLC
Co-managers:	BB&T Capital Markets, LLC, BNY Mellon Capital Markets LLC, Capital One Southcoast, Inc., Comerica Securities, Inc., Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc., RBS Securities Inc., Santander Investment Securities Inc., SMBC Nikko Capital Markets Ltd., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc.
Coupon:	4.5%
Price:	99.887
Yield:	4.514%
Spread:	Treasuries plus 240 bps
Call:	Make-whole at Treasuries plus 35 bps until Dec. 15, 2022, par call after
Trade date:	May 30
Settlement date:	June 6
Ratings:	Moody's: Baa2
	Standard & Poor's: BBB-
Distribution:	SEC registered
Price talk:	250 bps area

© 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.