WESTLAKE, Ohio – (BUSINESS WIRE) –TravelCenters of America Inc. (Nasdaq: TA) (“TA”) today announced the closing of a new $ 200 million senior secured term loan facility (“Term Loan”). The terms of the new loan include interest payable at LIBOR, with a floor of 100 basis points, plus 600 basis points and a maturity of seven years. The loan will be amortized in equal quarterly installments in aggregate annual amounts equal to 1.00% of the initial principal amount, with the balance payable on the final maturity date. The loan is prepayable after two years at par and is secured by a pledge of all equity interests of substantially all of TA’s wholly owned subsidiaries and by a pledge of substantially all of TA’s other assets and assets. of these wholly owned subsidiaries. TA plans to use the net proceeds of the term loan for general business purposes, including funding deferred capital expenditures, updates to key IT infrastructure and growth initiatives in line with its transformation plan.
“As we look to 2021, we have the people, the plan, the processes and now the cash to move our transformation manual forward to help this great company begin to realize its potential. This term loan offers these opportunities, which we will implement with prudence and care while continuing to manage an uncertain pace of recovery from the pandemic that awaits us, ”said Jonathan M. Pertchik, Managing Director of TA. “By concluding this new loan, we have further strengthened our balance sheet and given ourselves greater flexibility in a dynamic capital environment. TA is well positioned to handle site-level corrective maintenance and much-needed IT upgrades, as well as to fund our growth initiatives. ”
Citigroup Global Markets Inc., BofA Securities, Inc., PNC Capital Markets, LLC, US Bank National Association and Wells Fargo Securities, LLC acted as lead co-arrangers for the term loan.
About TravelCenters of America Inc.
TravelCenters of America Inc. (Nasdaq: TA) is the largest publicly traded full-service travel center network in the country. Founded in 1972 and headquartered in Westlake, Ohio, its nearly 20,000 employees serve customers in more than 270 locations in 44 states and Canada, primarily under the TA®, Petro Stopping Centers® and TA Express® brands. Offerings include diesel and gasoline, truck maintenance and repair, convenience stores, full and quick service restaurants, car and truck parking and other services and amenities dedicated to delivering great experiences. professional drivers and the general public. TravelCenters of America operates nearly 650 full-service, quick-service restaurants and 10 proprietary brands, including Quaker Steak and Lube®, Iron Skillet® and Country Pride®. For more information visit www.ta-petro.com.
Warning Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based on TA’s current beliefs and expectations, but such statements are not guaranteed. For example:
This press release indicates that TA intends to use the net proceeds of the offering for general business purposes, including funding deferred capital expenditures and upgrades to key IT infrastructure. However, the product can be used for other purposes.
Statements about transformation initiatives and the implementation of transition plans may imply that these changes and developments will result in improvements in TA’s business, operations and financial results. However, these changes may not be successful or lasting. In addition, even if they are successful and sustainable, other factors and risks may prevent technical assistance from obtaining the benefits it expects.
The TA’s balance sheet and liquidity statements may imply that the TA has sufficient financial resources to fund its operations for the foreseeable future, make new capital expenditures, and invest in other growth initiatives. However, TA’s business is subject to various risks and uncertainties, many of which are beyond TA’s control. For example, the COVID-19 pandemic has had a significant negative impact on the US economy; if current economic conditions continue for an extended period of time or worsen, TA’s business, results of operations and financial condition could be materially adversely affected. These and other risks and uncertainties may result in the TA not having sufficient financial resources to fund its operations, make capital expenditures, or invest in growth initiatives for the foreseeable future.
For these and other reasons, investors are cautioned not to place undue reliance on forward-looking statements. Except as required by law, TA does not intend to update or modify any forward-looking statement as a result of new information, future events or otherwise.