Hospitality Properties Trust Completes Acquisition of TravelCenters of America
Spins off operating business
Published in CSP Daily News
NEWTON, Mass. -- Hospitality Properties Trust (HPT) said that it completed its acquisition of TravelCenters of America Inc. (TA), announced in September, as well as the spinoff to HPT shareholders of the TA operating business.
HPT common shares are expected to begin trading on the New York Stock Exchange (NYSE) ex dividend for the spinoff today.
In September 2006, HPT agreed to acquire TA from a group of private investors led by Oak Hill Capital Partners and Olympus Partners in a cash transaction for approximately $1.9 billion. [image-nocss] This acquisition closed yesterday on the terms originally announced.
Simultaneously with this acquisition, HPT retained substantially all the TA's real estate, and HPT capitalized and spun out to HPT shareholders a subsidiary, TravelCenters of America LLC, which will lease this real estate and continue its fuel services and hospitality business.
TA shares began trading on a when issued basis on Jan. 29, 2007, under the symbol TA.wi. TA shares are expected to begin trading on the American Stock Exchange (AMEX) under the symbol TA beginning Feb. 1, 2007.
The distribution results in the delivery of one TA share to HPT shareholders for every 10 common shares of HPT owned. Information about the tax value and character of this distribution will be provided to HPT shareholders after the end of 2007.
TA has filed a prospectus and registration statement for the spinoff of TA shares with the Securities & Exchange Commission (SEC), which has been declared effective.
Westlake, Ohio-based TA operates a network of 163 hospitality and fuel service areas primarily along the U.S. interstate highway system; 146 of these centers are leased from HPT, 13 are owned and operated by TA franchisees and four are owned by TA or leased from third parties.