Moody's rates TravelCenters loan Ba3

Moody's Investors Service said it assigned a Ba3 rating to TravelCenters of America Inc.'s proposed $575 million secured credit facility, consisting of a $100 million revolving credit, due 2009, and a $475 million Tranche C term loan, due 2011. The outlook is stable.

The purpose of the proposed transaction is to fund the acquisition of eleven travel centers from Rip Griffin Truck Service Center Inc. for $120 million, to purchase one of the company's franchisee's travel centers for $10 million, to refinance existing debt, as well as for fees.

Moody's affirmed TravelCenters' $190 million senior subordinated notes due 2009 at B3, senior implied rating at B1 and senior unsecured issuer rating at B2.

Moody's said the ratings reflect substantial debt levels the company carries, which has been increased as a result of the levered acquisition of the Rip Griffin sites, and expected thin free cash flow generation in the near-term owing to the company's on-going investment programs.

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