TravelCenters of America Inc. (Nasdaq: TA) today announced the closing of a $16.6 million mortgage loan financing secured by the TA West Greenwich travel center, located in West Greenwich, Rhode Island. The TA West Greenwich travel center features 180 truck parking spaces, six diesel fuel dispensers and three truck service bays.
The ten-year loan matures in February 2030, has a fixed interest rate of 3.85% for five years that will reset for the final five years based on the Federal Home Loan Bank five-year advance rate and includes a 25-years amortization schedule. TA expects to use the proceeds for general business purposes.
The loan was completed at a loan-to-value of 66%, or an appraised value of $25 million, and the net book value of this property was $10 million as of December 31, 2019. TA continues to own another 50 travel center locations that are unencumbered by debt and which had an aggregate net book value of $523 million as of December 31, 2019.
The loan was provided by the Washington Trust Company. Tremont Realty Advisors LLC acted as TA’s advisor and Ropes & Gray LLP provided legal counsel to TA in this transaction.
About TravelCenters of America Inc.:
TravelCenters of America Inc. (Nasdaq: TA) is the nation’s largest publicly traded full-service travel center network. Founded in 1972 and headquartered in Westlake, Ohio, its more than 21,000 employees serve customers in over 260 locations in 44 states and Canada, principally under the TA®, Petro Stopping Centers® and TA Express® brands. Offerings include diesel and gasoline fuel, truck maintenance and repair, full-service and quick-service restaurants, car and truck parking and other services and amenities dedicated to providing great experiences for professional drivers and the general motoring public. TravelCenters of America operates nearly 650 full-service and 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.
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- This press release states that TA owns 50 other unencumbered properties having an aggregate net book of $523 million as of December 31, 2019. This may imply that these unencumbered properties may be a source for similar mortgage financings for TA in the future. However, TA may not elect to seek additional financings secured by those other properties and, if it does, it may not be able to obtain similar terms as the loan announced today. Further, the respective values of those 50 unencumbered properties differ and may change; as a result, the amounts we could finance for those properties would vary by property and would differ from the amount we financed with the loan announced today. In addition, the respective appraisal values for those properties may not exceed, and could be below, their net book values.
- This press release states that TA expects to use the proceeds from the loan for general business purposes. However, TA may use the proceeds for other purposes.
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