Service Properties Trust Announces Early Redemption of its $500 Million of Outstanding 5.000% Senior Notes Due August 2022

Rhea-AI Summary

Service Properties Trust (Nasdaq: SVC) has announced the early redemption of $500 million in outstanding 5.000% Senior Notes due August 2022. The redemption, expected to occur around June 30, 2022, will be funded using the company's cash on hand. SVC, which is a real estate investment trust with over $12 billion in investments, owns 298 hotels and nearly 800 retail properties across the U.S., Puerto Rico, and Canada, managed by The RMR Group.

Positive

• Early redemption of $500 million Senior Notes indicates improved liquidity.
• Use of cash on hand may strengthen financial stability.

Negative

• None.

NEWTON, Mass.--(BUSINESS WIRE)-- Service Properties Trust (Nasdaq: SVC) today announced the early redemption of its outstanding 5.000% Senior Notes due August 2022 at a redemption price equal to the principal amount of $500 million, plus accrued and unpaid interest to, but excluding the date of redemption. The redemption price is expected to be paid on or about June 30, 2022. SVC currently expects to fund this redemption by using cash on hand.

About Service Properties Trust

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust, or REIT, with more than $12 billion invested in two asset categories: hotels and service-focused retail net lease properties. SVC owns 298 hotels with over 47,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. SVC also owns nearly 800 retail service focused net lease properties totaling over 13.5 million square feet throughout United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with more than $37 billion in assets under management and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA. For more information, visit svcreit.com.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220512005970/en/

Kristin Brown, Director, Investor Relations

(617) 796-8232

Source: Service Properties Trust

FAQ

What recent financial move did Service Properties Trust (SVC) announce?

Service Properties Trust announced the early redemption of $500 million in Senior Notes due August 2022.

When is the redemption date for the Senior Notes of SVC?

The redemption for the Senior Notes is expected to be on or about June 30, 2022.

How does Service Properties Trust plan to fund the redemption of its Senior Notes?

SVC plans to fund the redemption using cash on hand.

What is the total investment portfolio of Service Properties Trust?

Service Properties Trust has over $12 billion invested in hotels and retail properties.

How many hotels does Service Properties Trust own?

Service Properties Trust owns 298 hotels with over 47,000 guest rooms.