Hospitality Properties Trust (NYSE: HPT) today announced that it has priced an underwritten public offering of $500 million of 5.00% unsecured senior notes due August 15, 2022.
HPT expects to use the net proceeds from this offering to prepay in full at par the $287 million outstanding principal amount of its 6.75% Senior Notes which mature on February 15, 2013, to redeem some of its outstanding 7% Series C Cumulative Redeemable Preferred Shares and for general business purposes, which may include funding hotel renovations or rebranding costs and potential future acquisitions. The settlement of this offering is expected to occur on August 16, 2012.
The joint book-running managers for this offering are Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, RBC Capital Markets, LLC and Wells Fargo Securities, LLC. The joint lead managers for this offering are Jefferies & Company, Inc., Morgan Stanley & Co. LLC and UBS Securities LLC.
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 and the accompanying prospectus may be obtained by calling Citigroup Global Markets Inc., toll-free at (800) 831-9146, Merrill Lynch, Pierce, Fenner & Smith Incorporated, at (800) 294-1322, RBC Capital Markets, LLC, toll free at (866) 375-6829, or Wells Fargo Securities, LLC toll-free at (800) 326-5897.
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 EXPECTATIONS, BUT THESE STATEMENTS AND THE IMPLICATIONS OF THESE STATEMENTS MAY NOT OCCUR. FOR EXAMPLE,
- THIS PRESS RELEASE STATES THAT THE SETTLEMENT OF THE SALE OF SENIOR NOTES IS EXPECTED TO OCCUR ON AUGUST 16, 2012. THE SETTLEMENT OF THIS OFFERING 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, THIS OFFERING MAY NOT CLOSE.
- THIS PRESS RELEASE STATES THAT HPT EXPECTS TO USE A PART OF THE NET PROCEEDS FROM THIS OFFERING TO PREPAY IN FULL AT PAR THE $287 MILLION OUTSTANDING PRINCIPAL AMOUNT OF ITS 6.75% SENIOR NOTES WHICH MATURE ON FEBRUARY 15, 2013. HOWEVER, IF THIS OFFERING DOES NOT CLOSE HPT MAY NOT PREPAY ANY OF SUCH NOTES.
- THIS PRESS RELEASE STATES THAT HPT EXPECTS TO USE A PART OF THE NET PROCEEDS FROM THIS OFFERING TO REDEEM SOME OF ITS OUTSTANDING 7% SERIES C CUMULATIVE REDEEMABLE PREFERRED SHARES. HOWEVER, IF THIS OFFERING DOES NOT CLOSE HPT MAY NOT REDEEM ANY OF ITS OUTSTANDING 7% SERIES C CUMULATIVE REDEEMABLE PREFERRED SHARES.
FOR THESE REASONS, AMONG OTHERS, INVESTORS SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.