TravelCenters of America Closes New $200 Million Term Loan
15 December 2020 - 8:15AM
Business Wire
TravelCenters of America Inc. (Nasdaq: TA) (“TA”) today
announced the closing of a new $200 million senior secured term
loan facility (“Term Loan”). Terms of the new loan include interest
payable at LIBOR, with a floor of 100 basis points, plus 600 basis
points and a seven-year maturity. The loan will amortize in equal
quarterly installments in aggregate annual amounts equal to 1.00%
of the original principal amount, with the balance payable on the
final maturity date. The loan is prepayable after two years at par
and is secured by a pledge of all the equity interests of
substantially all of TA’s wholly owned subsidiaries and a pledge of
substantially all of TA’s other assets and the assets of such
wholly-owned subsidiaries. TA expects to use the net proceeds from
the Term Loan for general business purposes, including funding of
deferred capital expenditures, updates to key IT infrastructure,
and growth initiatives consistent with its Transformation Plan.
“As we look ahead to 2021, we have the people, the plan, the
processes and now the liquidity to advance our transformation
playbook to help this great company begin to achieve its potential.
This term loan provides for these opportunities, which we will
carry out with caution and care while we continue to manage through
an uncertain pace of recovery from the pandemic that lies ahead,”
said Jonathan M. Pertchik, TA’s Chief Executive Officer. "By
closing this new loan, we have further strengthened our balance
sheet and given ourselves increased flexibility in a dynamic
capital environment. TA is well-positioned to address remedial
site-level maintenance and much-needed IT upgrades, as well as fund
our growth initiatives."
Citigroup Global Markets Inc., BofA Securities, Inc., PNC
Capital Markets, LLC, U.S. Bank National Association and Wells
Fargo Securities, LLC served as Joint Lead Arrangers for the Term
Loan.
About TravelCenters of America
Inc. TravelCenters of America Inc. (Nasdaq: TA) is the
nation's largest publicly traded full-service travel center
network. Founded in 1972 and headquartered in Westlake, Ohio, its
nearly 20,000 employees serve customers in over 270 locations in 44
states and Canada, principally under the TA®, Petro Stopping
Centers® and TA Express® brands. Offerings include diesel and
gasoline fuel, truck maintenance and repair, convenience stores,
full-service and quick-service restaurants, car and truck parking
and other services and amenities dedicated to providing great
experiences for professional drivers and the general motoring
public. TravelCenters of America operates nearly 650 full-service
and quick-service restaurants and 10 proprietary brands, including
Quaker Steak and Lube®, Iron Skillet® and Country Pride®. For more
information, visit www.ta-petro.com.
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 TA's present beliefs and expectations, but these
statements are not guaranteed. For example:
- This press release states that TA intends to use the net
proceeds from the offering for general business purposes, including
funding deferred capital expenditures and updates to key IT
infrastructure. However, the proceeds may be used for other
purposes.
- Statements about transformational initiatives and
implementation of transitional plans may imply that these changes
and developments will result in improvements to TA's business,
operations and financial results. However, these changes may not be
successful or sustainable. Further, even if they are successful and
sustainable, other factors and risks may result in TA not achieving
the benefits that it expects.
- Statements about TA’s balance sheet and liquidity may imply
that TA has sufficient financial resources to fund operations for
the foreseeable future, make new capital expenditures and invest in
other growth initiatives. However, TA’s business is subject to
various risks and uncertainties, many of which are outside TA’s
control. For example, the COVID-19 pandemic has significantly
negatively impacted the U.S. economy; if the current economic
conditions continue for a sustained period or worsen, TA’s
business, results of operations and financial condition may be
materially adversely impacted. These and other risks and
uncertainties may result in TA not having sufficient financial
resources to fund operations, make capital expenditures or invest
in growth initiatives for the foreseeable future.
For these reasons, among others, investors are cautioned not to
place undue reliance upon forward looking statements. Except as
required by law, TA does not intend to update or change any
forward-looking statement as a result of new information, future
events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20201214005716/en/
Kristin Brown TravelCenters of America 617-796-8251
kbrown@ta-petro.com
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