Service Properties Trust (SVC) said Tuesday that it has priced $580 million worth of zero coupon senior secured notes due September 2027 for gross proceeds of approximately $500 million.

The offering, which is expected to close on Sept. 23, includes a 12-month extension option based on meeting certain contingencies, the company said.

Service Properties Trust said it will use the $490 million expected net proceeds to redeem its outstanding 4.750% senior unsecured notes due October 2026 as well as to repay outstanding amounts under its revolving credit facility.

The company also announced Tuesday the early redemption of its outstanding 2026 notes for a principal amount of $450 million, which will be funded with some of the net proceeds from the zero coupon senior secured notes offering.