Hospitality Properties gets commitments for $2 billion term loan

By Sarah Lizee

Olympia, Wash., June 3 – Hospitality Properties Trust secured commitments from lenders for an up to $2 billion unsecured term loan facility to help finance its planned $2.4 billion acquisition of a net lease portfolio from Spirit MTA REIT, according to a press release.

The portfolio includes 774 service-oriented retail net lease properties.

Hospitality Properties may use proceeds from the new term loan, borrowings under its existing revolving credit facility, proceeds from the sale of some assets and/or proceeds from the issuance of new unsecured notes to finance the transaction.

The company said it expects to refinance the term loan with a combination of longer-term senior notes, bank debt and the sale of assets following closing of the transaction.

The transaction is subject to approval by Spirit MTA shareholders and other customary conditions and is expected to close in the third quarter of 2019.

Hospitality Properties real estate investment trust is based in Newton, Mass. Spirit MTA is a Dallas-based net-lease real estate investment trust.

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