TravelCenters receives tenders of $187 million 12¾% notes

New York, June 30 - TravelCenters of America, Inc. said it received tenders of $187 million or 98.42% of its $190 million of 12¾% senior subordinated notes due May 1, 2009 under its offer to buy the securities.

The tender expired at midnight ET on June 29.

TravelCenters announced pricing for the offer on June 27, saying holders who tendered before the consent deadline of 5 p.m. ET on June 15 will receive $1,092.68 per $1,000 principal amount, including a $30.00 per $1,000 consent payment that will only be paid to those who tendered before the deadline.

Pricing was fixed at 2 p.m. ET on June 27.

In a June 16 announcement, TravelCenters said it received the necessary consents to amend the notes. By the consent deadline, the company had received tenders and consents for $187 million notes.

TravelCenters announced June 2 it had begun a cash tender offer and consent solicitation for any and all of its 12¾% notes.

Holders tendering their notes were required to consent to amendments to the note indenture, which eliminated substantially all of the restrictive covenants, certain events of default and certain other related provisions.

The tender offer and consent solicitation was subject to completion of a refinancing of TravelCenters' credit facilities and receipt of consents from holders of at least 50% of the outstanding notes. Holders could not tender without delivering consents or deliver consents without also tendering.

For each $1,000 principal amount of notes validly tendered by the consent date, TravelCenters paid the present value on a date promptly following the tender expiration of the $1,063.75 per $1,000 principal amount redemption price on the first call date of Nov. 1 and interest payments up to the call date, discounted using a yield to the call date of 50 basis points over the yield on the 1 5/8% U.S. Treasury note due Oct. 31 minus accrued interest up to but excluding the date of payment.

The Westlake, Ohio, company is an operator of travel centers and truck repair facilities.

J.P. Morgan Securities Inc. (call collect 212 834-3424 or 866 834-4666) and Lehman Brothers Inc. (call collect 212 528-7581 or 800 438-3242) are dealer managers and solicitation agents. The depositary and information agent is D.F. King & Co., Inc. (banks and brokers call 212 269-5550; others call 800 488-8075).

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