Hospitality Properties to repay revolver via senior note offering

By Tali David

Minneapolis, May 30 - Hospitality Properties Trust plans to use proceeds of a senior note offering to repay amounts outstanding under its revolving credit facility, according to a 424B5 filed with the Securities and Exchange Commission.

Proceeds will also be used to redeem some or all of the trust's outstanding 7% series C cumulative redeemable preferred shares with a total liquidation preference of about $167.5 million and for general business purposes, which may include funding hotel renovation or rebranding costs and potential future acquisitions.

Until the proceeds are applied toward the paydown and redemption, Hospitality Properties said it may use the funds from the senior notes for short-term investments, some or all of which may not be investment grade.

The real estate investment trust is based in Newton, Mass.

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