Hospitality Properties Trust completed its public offerings of senior unsecured notes totaling $1.70 billion.
The hotel real estate investment trust issued $825.0 million of 4.350% notes due Oct. 1, 2024; $450.0 million of 4.750% notes due Oct. 1, 2026; and $425.0 million of 4.950% notes due Oct. 1, 2029.
Interest on the notes, which will accrue from Sept. 18, will be paid semiannually in arrears every April 1 and Oct. 1, starting in 2020.
The REIT plans to use the $1.68 billion in net proceeds mainly to partially fund its $2.4 billion cash acquisition of Spirit MTA REIT's net-lease portfolio. If the transaction is not finalized on or before Dec. 31, the company will be required to redeem all the outstanding notes at a price equal to 101% of the principal amount, plus accrued and unpaid interest.
