Service Properties Trust (SVC): debt financing — Service Properties Trust enters $650M secured credit facility, replacing $800M facility

Service Properties Trust

New $650M secured revolving credit facility replaces $800M facility that was maturing July 15, 2023.
Maturity date is June 29, 2027, with two six-month extension options subject to conditions.
Interest rate based on SOFR plus margin of 1.50%-3.00% (initially 2.50%) based on leverage ratio.
Facility secured by 69 properties: 66 hotels and 3 net lease properties; includes amended pledge agreement.
Financial covenants modified; acceleration upon change of control, including if RMR Group ceases as business manager.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Service Properties Trust incurred revolving credit of $650 million with Wells Fargo Bank, National Association, as administrative agent and a lender, and a syndicate of other lenders at SOFR plus a margin ranging from 1.50% to 3.00% based on our leverage ratio, as d maturing June 29, 2027.

Instrument: revolving credit
Principal: $650 million
Counterparty: Wells Fargo Bank, National Association, as administrative agent and a lender, and a syndicate of other lenders
Rate: SOFR plus a margin ranging from 1.50% to 3.00% based on our leverage ratio, as d
Maturity: June 29, 2027
Event: incurrence

Exact text from the filing

On June 29, 2023, Service Properties Trust entered into an amended and restated credit agreement with Wells Fargo Bank, National Association, as administrative agent and a lender, and a syndicate of other lenders, or the Credit Agreement, governing a $650 million secured revolving credit facility.

View on SEC.gov

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Service Properties Trust amended Pledge Agreement with Wells Fargo Bank, National Association, in its capacity as administrative agent (effective 2023-06-29).

Action: amendment
Counterparty: Wells Fargo Bank, National Association, in its capacity as administrative agent
Effective: 2023-06-29

Exact text from the filing

In connection with the new facility, we and certain of our subsidiaries, or the Pledgors, entered into an amended and restated pledge agreement in favor of Wells Fargo Bank, National Association, in its capacity as administrative agent, or the Pledge Agreement.

View on SEC.gov

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Service Properties Trust amended Credit Agreement with Wells Fargo Bank, National Association, as administrative agent and a lender, and a syndicate of other lenders valued at $650 million (effective 2023-06-29).

Action: amendment
Agreement: credit facility
Counterparty: Wells Fargo Bank, National Association, as administrative agent and a lender, and a syndicate of other lenders
Value: $650 million
Effective: 2023-06-29

Exact text from the filing

On June 29, 2023, Service Properties Trust entered into an amended and restated credit agreement with Wells Fargo Bank, National Association, as administrative agent and a lender, and a syndicate of other lenders, or the Credit Agreement, governing a $650 million secured revolving credit facility.

View on SEC.gov

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Source: SEC EDGAR

accession 0001104659-23-078734

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