Service Properties Trust Completes $580 Million Zero Coupon Senior Secured Notes Offering to Redeem 2026 Notes and Reduce Debt

Reuters
Sep 24
<a href="https://laohu8.com/S/SVC">Service Properties Trust</a> Completes $580 Million Zero Coupon Senior Secured Notes Offering to Redeem 2026 Notes and Reduce Debt

Service Properties Trust announced the completion of a private offering of $580,155,000 in aggregate principal amount at maturity of zero coupon senior secured notes due 2027. The offering was completed on September 23, 2025. The notes were issued at an initial accreted value of $861.84 per $1,000 principal amount, with the accreted value increasing at a rate of 7.50% per annum, compounded semiannually, until the maturity date of September 30, 2027. No cash interest will accrue prior to maturity unless the company elects to exercise an extension option. Service Properties Trust has a one-time option to extend the maturity by one year to September 30, 2028, subject to certain conditions and payment of an extension fee. Net proceeds from the offering, approximately $490.0 million, are intended to fund the full redemption of the company's outstanding 4.750% senior notes due 2026 and to reduce amounts outstanding under its revolving credit facility. The redemption of the 2026 notes is expected to occur on October 16, 2025, at a price equal to the $450.0 million principal amount plus accrued and unpaid interest and a make-whole premium. The notes were offered in a private placement to qualified institutional buyers under Rule 144A and to non-U.S. persons in accordance with Regulation S. The notes and related guarantees have not been registered under the Securities Act of 1933. No URL for the full prospectus is included in the provided document.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Service Properties Trust published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001104659-25-092764), on September 24, 2025, and is solely responsible for the information contained therein.

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