TravelCenters of America extends credit facility, reduces pricing

By Marisa Wong

Los Angeles, July 22 – TravelCenters of America LLC entered into an amendment on Friday to its amended and restated loan and security agreement dated Oct. 25, 2011 with Wells Fargo Capital Finance, LLC as agent to extend the maturity and decrease pricing, according to an 8-K filing with the Securities and Exchange Commission.

The amendment extends the maturity date of the credit facility to July 19, 2024 from Dec. 19, 2019 and reduces the applicable margins on borrowings and standby letter of credit fees by 25 basis points and on commercial letter of credit fees by 12.5 bps.

The amendment also lowers the sublimit for issuance of letters of credit under the facility to $125 million from $170 million.

In addition, the amendment includes some adjustments to the limitations on investments, dividends and stock repurchases and adjustments to the borrowing base calculation in a manner favorable to the company.

As of Friday, the applicable margin was 125 bps for Libor borrowings and standby letter of credit fees and 62.5 bps for commercial letter of credit fees, in each case subject to adjustment based on facility availability, utilization and other matters.

As of the amendment date, the unused line fee was 25 bps, subject to adjustment according to the average daily principal amount of unused commitments under the facility.

TravelCenters is a Westlake, Ohio-based truck stop and travel service center operator.

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