Service Properties Trust announced the pricing of $580 million in aggregate principal amount at maturity of zero coupon senior secured notes. These notes are due in September 2027 and include a 12-month extension option, subject to certain conditions and an extension fee.
The new notes are expected to generate approximately $500 million in gross proceeds for SVC, before accounting for issuance costs. This capital infusion is a key step in bolstering the company's financial position and supporting its strategic initiatives.
The notes will accrete at an annual rate of 7.50%, compounded semi-annually. This financing move provides Service Properties Trust with additional liquidity and flexibility as it continues its portfolio transformation and deleveraging efforts.
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