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|
|First Merit Bank, N.A.||Lender|
|The Huntington National Bank||Lender|
|Flagstar Bank, FSB||Lender|
|Siemens Financial Services, Inc.||Lender|
|City National Bank||Lender|
WARNING REGARDING FORWARD LOOKING STATEMENTSCERTAIN 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.