NEWTON, Mass.--(EON: Enhanced Online News)--Hospitality Properties Trust (Nasdaq: HPT) today announced that is has priced underwritten public offerings of $200 million of 4.50% unsecured senior notes due June 15, 2023, or the 2023 senior notes, and $400 million of 4.95% unsecured senior notes due February 15, 2027. The 2023 senior notes are a further issuance of HPT’s existing unsecured senior notes due June 15, 2023 issued on June 6, 2013. The settlements of these offerings are expected to occur on January 13, 2017, subject to customary closing conditions.
HPT expects to use the net proceeds from these offerings to repay amounts outstanding under its unsecured revolving credit facility, for general business purposes and possibly to redeem some or all of its outstanding 7.125% series D cumulative redeemable preferred shares of beneficial interest with an aggregate liquidation preference of approximately $290.0 million.
The joint book-running managers for these offerings were Citigroup Global Markets Inc., RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC, BBVA Securities Inc., Mizuho Securities USA Inc., PNC Capital Markets LLC, Regions Securities LLC and U.S. Bancorp Investments, Inc. The joint lead managers for these offerings were Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co. LLC. The co-managers for these offerings were BB&T Capital Markets, a division of BB&T Securities, LLC, SMBC Nikko Securities America, Inc., Fifth Third Securities, Inc. and FTN Financial Securities Corp.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction. Copies of the prospectus supplement relating to these offerings and the related prospectus may be obtained by contacting the offices of: Citigroup Global Markets Inc. c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: (800) 831-9146; RBC Capital Markets, LLC, Three World Financial Center, 200 Vesey Street, New York, NY 10281, Attention: Debt Capital Markets, telephone: (866) 375-6829 or email: firstname.lastname@example.org; UBS Securities LLC, Attn: Prospectus Department, 1285 Avenue of the Americas, New York, NY 10019, Attention: Prospectus Department, telephone: (888) 827-7275; and Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402, Attention: WFS Customer Service, telephone: (800) 645-3751 or email: email@example.com.
Hospitality Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and travel centers located in 45 states, Puerto Rico and Canada. HPT's properties are operated under long term management or lease agreements. HPT is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.
WARNING REGARDING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON HPT'S PRESENT BELIEFS AND EXPECTATIONS, BUT THESE STATEMENTS ARE NOT GUARANTEED. FOR EXAMPLE:
- THIS PRESS RELEASE STATES THAT THE SETTLEMENT OF THE SALE OF SENIOR NOTES IS EXPECTED TO OCCUR ON JANUARY 13, 2017. THE SETTLEMENT OF THESE OFFERINGS IS SUBJECT TO VARIOUS CONDITIONS AND CONTINGENCIES AS ARE CUSTOMARY IN UNDERWRITING AGREEMENTS IN THE UNITED STATES. IF THESE CONDITIONS ARE NOT SATISFIED OR THE SPECIFIED CONTINGENCIES DO NOT OCCUR, THESE OFFERINGS MAY NOT CLOSE.
- HPT'S CURRENT INTENT TO USE THE NET PROCEEDS FROM THESE OFFERINGS TO REPAY AMOUNTS OUTSTANDING UNDER ITS UNSECURED REVOLVING CREDIT FACILITY, FOR GENERAL BUSINESS PURPOSES AND POSSIBLY TO REDEEM SOME OR ALL OF ITS OUTSTANDING 7.125% SERIES D CUMULATIVE REDEEMABLE PREFERRED SHARES OF BENEFICIAL INTEREST IS DEPENDENT ON THE CLOSING OF THESE OFFERINGS AND MAY NOT OCCUR.
FOR THESE REASONS, AMONG OTHERS, INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.