TravelCenters Of America LLC Enters New $200 Million Credit Facility

TravelCenters of America LLC (NYSE Amex: TA) today announced that it has entered into a new $200 million revolving credit facility. The new facility replaces TA’s previous $100 million credit facility, which had a maturity date of November 12, 2012. The maturity date of the new facility is October 25, 2016. Drawings under this new credit facility will require interest payments of LIBOR plus a spread (currently 225 basis points) and are secured by TA’s accounts receivable, inventory and other assets (excluding real estate assets). The new credit facility also includes a feature under which the maximum borrowing may be increased up to $300 million in certain circumstances.

Wells Fargo Capital Finance, LLC, part of Wells Fargo & Company (NYSE: WFC), acted as sole lead arranger and bookrunner for the new facility. Banks participating in the new facility are as follows:
 

Name of Institution
         

Facility Title
Wells Fargo Capital Finance, LLC Sole Lead Arranger and Bookrunner
PNC Bank, National Association Syndication Agent
Regions Bank Co-Documentation Agent
UBS Loan Finance LLC Co-Documentation Agent
Citibank, NA Lender
First Merit Bank, N.A. Lender
The Huntington National Bank Lender
Flagstar Bank, FSB Lender
Siemens Financial Services, Inc. Lender
City National Bank Lender

TA’s travel centers operate under the “TravelCenters of America”, “TA” and “Petro” brand names and offer diesel and gasoline fuel, restaurants, truck repair services, travel and convenience stores and other services. TA’s nationwide business includes travel centers located in 41 U.S. states and in Canada.

WARNING REGARDING FORWARD LOOKING STATEMENTS

CERTAIN STATEMENTS CONTAINED IN THIS PRESS RELEASE ARE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS INCLUDE STATEMENTS IMPLYING THE COSTS OF AND THE FUTURE AVAILABILITY OF BORROWINGS UNDER THE NEW REVOLVING CREDIT FACILITY. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY THE FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:
  • INTEREST PAYMENTS UNDER THE NEW CREDIT FACILITY ARE EQUAL TO LIBOR PLUS A SPREAD, WHICH IS CURRENTLY 225 BASIS POINTS. THE SPREAD IS DETERMINED BY THE AMOUNT OF AVAILABILITY UNDER THE NEW CREDIT FACILITY, WHICH IS BASED ON THE AMOUNT OF QUALIFYING COLLATERAL OWNED BY TA. AS A RESULT, INTEREST PAYMENTS UNDER THE NEW CREDIT FACILITY MAY BE HIGHER THAN LIBOR PLUS 225 BASIS POINTS. ALSO, ACTUAL ANNUAL COSTS UNDER THE NEW CREDIT FACILITY WILL BE HIGHER THAN LIBOR PLUS A SPREAD ON DRAWINGS BECAUSE OF OTHER FEES AND EXPENSES ASSOCIATED WITH THE NEW CREDIT FACILITY.
  • AVAILABLITY OF BORROWINGS UNDER THE NEW CREDIT FACILITY IS SUBJECT TO LIMITS BASED ON TA MAINTAINING CERTAIN LEVELS OF QUALIFYING COLLATERAL. ACCORDINGLY, THE MAXIMUM AMOUNT AVAILABLE UNDER THE NEW CREDIT FACILITY MAY BE LESS THAN $200 MILLION. FOR EXAMPLE, THE MAXIMUM AMOUNT AVAILABLE UNDER THE NEW CREDIT FACILITY BASED ON OUR QUALIFYING COLLATERAL AS OF SEPTEMBER 30, 2011 WOULD HAVE BEEN APPROXIMATELY $145 MILLION.
  • INCREASING THE MAXIMUM BORROWINGS UNDER THE NEW CREDIT FACILITY ABOVE $200 MILLION IS SUBJECT TO AVAILABLE COLLATERAL, WHICH MAY NOT BE SUFFICIENT, AND LENDER PARTICIPATION, WHICH MAY NOT BE OBTAINED.

FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. INVESTORS SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS. EXCEPT AS MAY BE REQUIRED BY LAW, TA DOES NOT INTEND TO IMPLY THAT IT WILL UPDATE OR REVISE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

Copyright Business Wire 2010

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