Hospitality Properties continues to buy convertibles at a discount

By Lisa Kerner

Charlotte, N.C., March 17 - Hospitality Properties Trust's previously announced cash tender offer for all of its $265 million in 3.8% convertible senior notes due 2027 fits with the company's strategy of "taking care of potential maturities" in advance of their scheduled maturities, Timothy Bonang, vice president of investor relations, said in an e-mail.

Bonang said the convertibles can be put to Hospitality Properties in 2012.

According to Bonang, the company has been buying the notes over the past year or so, at a discount, with approximately $265 million remaining.

As previously reported, Hospitality Properties will purchase the convertibles at par plus accrued interest up to but excluding the payment date. The offer will expire at midnight ET on April 9.

The offer will be funded using cash on hand and drawings on the company's revolving credit facility.

Hospitality Properties is a Newton, Mass., real estate investment trust.

© 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.